Unformatted text preview: l Hurdles. Divergence refers to the difference between a company’s strategic profile and that of its competitors’.
Specifically, it refers to the divergence between the key competitive factors and level of investment in these
factors of a company’s offering relative to its rivals’ as visualized on the strategy canvas. In red oceans,
companies’ strategies tend to converge; they tend to focus on the same key competitive factors with marginal
differences in price and offering level across these competing factors. A company practicing blue ocean
strategy, in contrast, reconstructs market boundaries to create a divergent offering from the competition. See
Strategy Canvas and Six Paths Framework. 8
© 2008 Kim & Mauborgne. All Rights Reserved. Blue Ocean Strategy Dictionary E Eliminate-Reduce-Raise-Create Grid (ERRC Grid) forces managers to systematically
pursue differentiation and low cost by answering the following questions based on noncustomers insights
gained using the Six P...
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- Spring '12
- ........., Blue Ocean Strategy Dictionary