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ERRC Grid (Eliminate-Reduce-Raise-Create)

L1StrategyCompetitive advantagedesignStages 0 to 4

Reference model

The ERRC gridA two-by-two grid with four actions: eliminate, reduce, raise and create, each with its question. Eliminating and reducing lower the cost structure; raising and creating lift buyer value. Doing both at once is value innovation.EliminateWhich of the factors that the industrytakes for granted should be eliminated?Cuts costRaiseWhich factors should be raised wellabove the industry’s standard?Lifts valueReduceWhich factors should be reduced wellbelow the industry’s standard?Cuts costCreateWhich factors should be created that theindustry has never offered?Lifts valueEliminate + reducelower the cost structureRaise + createlift buyer valueValue innovation

Eliminate and reduce lower the cost structure; raise and create lift buyer value.

About this model

Four questions turn the value curve from the strategy canvas into a redesign: which factors to eliminate, which to reduce, which to raise and which to create. Eliminating and reducing cut cost; raising and creating lift buyer value; doing both at once is value innovation.

W. Chan Kim & Renée Mauborgne — Blue Ocean Strategy (the four actions framework and the ERRC grid) · 2005

How to read it

  • Eliminate: factors the industry takes for granted that buyers no longer value. Reduce: factors that have been over-engineered in a race with rivals.
  • Raise: factors whose level should go well above the industry’s. Create: factors the industry has never offered.
  • Check the four boxes against each other: a grid with nothing eliminated or reduced adds cost without the offsetting saving, and one with nothing raised or created is only a cost cut.

What this does

Forces four blunt questions on the value curve — what to Eliminate, Reduce, Raise, and Create — turning a Blue Ocean insight into a concrete redesign.

When to use it

Right after a Strategy Canvas has surfaced a differentiation opportunity, to make it actionable rather than aspirational.

What happens next

The redesigned offering feeds the Business Model Canvas's Value Proposition block.

Golden thread

Builds on ←

  • blueocean

Feeds into →

  • bmc

Framework library: Strategy and environment (layer L1), lifecycle stages 0 to 4.

Use this tool, free

Sign in to open the worksheet. Your work saves as you type, the AI can draft the parts you have not filled in, and you finish with an analysis and a 30/60/90-day action plan.

Hand-built by Eccellere and reviewed by Eccellere on 02/11/2026. Guidance, not advice: apply your own judgement.