The Four Actions framework

The four actions framework is an analytical tool used to create new value curves on a strategy canvas that have the potential to be Blue oceans.

The four actions framework is designed to facilitate thinking about these four actions:

  1. Eliminate
  2. Reduce
  3. Raise
  4. Create

These four actions can be displayed on a grid, called the eliminate-reduce-raise-create (ERRC) grid, to provide an organized way to create an easy view of a company’s strategy.

Eliminate

Eliminate actions identify Factors of competition that are taken for granted as required by incumbents in the industry, but could be eliminated entirely.

The benefits of eliminating factors can help a business with:

  • Managing operational overhead
  • Reducing product & marketing costs
  • Making a product more accessible to a new or existing Customer segment

Reduce

Reduce actions look at the Factors of competition that can be reduced below industry standards.

Think about which factors might be inhibiting growth, but are assumed to be required by the industry.

Raise

Raise actions identify the Factors of competition which should be raised above industry standards.

Challenge your assumptions about the status quo. Is there an area the industry is currently undervaluing or under-investing in? Would putting greater emphasis lead to value innovation that might help your product succeed?

Create

Create actions are about identifying Factors of competition that don’t currently exist in the industry and should be created.

This is where creativity and vision are crucial. What new factors could be created to make a blue ocean of opportunity and escape the Red ocean’s competition?