Blue Ocean Strategy Canvas
The Strategy Canvas is the central diagnostic and action-planning tool of Blue Ocean Strategy, developed by W. Chan Kim and Renée Mauborgne and first published in their 2004 Harvard Business Review article and subsequent book. It is a two-dimensional chart that plots the competitive landscape of an industry: the horizontal axis lists the key factors that the industry currently competes on and invests in (price, quality, service, features, etc.), and the vertical axis shows the offering level — high or low — that a company provides on each factor. By drawing 'value curves' for your company and for key competitors, the canvas makes the implicit explicit: it reveals where an industry converges on the same competitive moves, where your offering mimics competitors rather than differentiating, and — critically — which factors could be candidates for elimination, reduction, raising, or creation (the ERRC Grid). In a workshop, the Strategy Canvas is used to challenge the status quo by visually exposing competitive convergence, spark creative thinking about what 'uncontested market space' might look like, and align a leadership team on a differentiated value proposition. The resulting 'to-be' curve becomes the strategic direction for the organisation.
How to run it
- 1
Brief the group on Blue Ocean Strategy concepts (15 min): the red ocean / blue ocean distinction, the idea of value innovation, and the Strategy Canvas structure.
- 2
Collectively define the horizontal axis: brainstorm the 8–12 factors your industry currently competes on. Use customer research, sales insights, and competitive analysis. Converge on a final list through dot-voting.
- 3
Draw the 'as-is' value curve: as a group, rate your own company's offering on each factor (1 = low, 5 = high). Connect the dots to form your value curve.
- 4
Draw competitor curves: repeat the rating exercise for 2–4 major competitors or strategic groups, using a different colour for each. Reveal the full picture.
- 5
Analyse the canvas together: identify convergence points (where all curves cluster), your points of differentiation, and areas where you invest heavily but customers don't value highly.
- 6
Apply the Four Actions Framework (ERRC): for each factor, ask 'Should this be Eliminated, Reduced, Raised, or Created?' Use the ERRC Grid as a companion exercise.
- 7
Sketch a 'to-be' value curve: based on ERRC decisions, redraw your curve to reflect the target future state. Ensure it is divergent from competitors and focused on a clear buyer profile.
- 8
Stress-test the new curve: check it against three criteria — is it focused (not trying to win on everything)? Is it divergent from competitors? Does it carry a compelling tagline?
Tips
The most common failure mode is rating yourself too high on everything. Push back hard — force the group to compare against actual competitor offerings, not aspirational ones.
Have a customer or customer-facing team member in the room. Perception of value factors is often very different inside versus outside the company.
Don't anchor on existing factor lists too quickly — the most powerful insight often comes from adding factors that the industry currently ignores entirely (the 'Create' row).
Keep the factor list to 10–12 maximum. More than that makes the canvas unreadable and dilutes strategic focus.
The to-be curve should tell a story a child could understand. If you can't articulate it in one sentence, you haven't focused enough.
Variations
For a faster 60-minute version, pre-research and pre-draw competitor curves and use the session only for the ERRC and to-be curve work. For a customer-centric variant, run separate canvases for different buyer personas before overlaying them. Combine with the Six Paths Framework to first challenge where you look for new factors before drawing the canvas.
Where it fits
Frequently asked questions
When should I use Blue Ocean Strategy Canvas?â–¾
Use Blue Ocean Strategy Canvas when you want to: Strategic planning sessions seeking differentiation from competitors; Product or service redesign workshops; Market entry strategy for new geographies or segments; Identifying overserved or underserved customer segments; Aligning a leadership team on a unified strategic direction; Innovation pipeline framing and prioritisation.
How long does Blue Ocean Strategy Canvas take?â–¾
Blue Ocean Strategy Canvas typically takes 90–150 minutes.
How many participants does Blue Ocean Strategy Canvas work for?â–¾
Blue Ocean Strategy Canvas works best for groups of 4–24 participants.
What materials do I need for Blue Ocean Strategy Canvas?â–¾
To run Blue Ocean Strategy Canvas you will need: Large whiteboard or flip chart paper (landscape), Coloured markers (one colour per player/competitor), Ruler or straight edge, Printed list of industry value factors, Voting dots, Sticky notes.
How difficult is Blue Ocean Strategy Canvas to facilitate?â–¾
Blue Ocean Strategy Canvas is rated intermediate — some facilitation experience is helpful.
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Try it freeMethod descriptions on Workshop Weaver are original content written by our team, based on established facilitation practices. This method was inspired by work from W. Chan Kim & Renée Mauborgne.