What is an ERRC Matrix?
The Eliminate-Reduce-Raise-Create (ERRC) Matrix (aka. ERRD Grid) is an essential tool of blue ocean strategy. Developed by Chan Kim and Renée Mauborgne, ERRC Matrix is a simple grid-like framework that drives firms to focus on eliminating and reducing, as well as raising and creating while unlocking a new blue ocean.
So what does 'E', 'R', 'R', 'C' stands for?
E- Eliminate
Factors that have been competitive in the industry for a long time but people take for granted should be eliminated because they no longer add value.
R - Reduction
The factors that should be reduced are far below industry standards because they bring high costs, but provide little competitive advantage or profit.
R - Raise
The factors that should be improved should be much higher than industry standards to increase the value of existing customers.
C - Create
Create factors that can attract new customers that the industry has never provided before.
ERRC Template
Here is an ERRC template created with Visual Paradigm's online strategic analysis tool. You can customize this template by modifying the text, color and font, and use it in your presentations and reports.
