Divergence refers to the difference between a

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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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This note was uploaded on 10/21/2012 for the course ECON 45 taught by Professor Mikel during the Spring '12 term at Art Institute of Atlanta.

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