Four Actions Framework (ERRC Grid)

The video tutorial introduces the ERRC Grid, a framework for analyzing value and cost drivers in a company's offerings. It is part of the Blue Ocean strategy, which aims to create new markets with less competition. The ERRC framework consists of four actions: Eliminate, Raise, Reduce, and Create. Eliminate and Raise focus on optimizing the value delivery chain, while Reduce and Create target the product or value proposition itself. The goal is to eliminate waste, enhance value, and innovate to attract new customers and markets.

What is the primary goal of the ERRC Grid within the Blue Ocean strategy?

• To create differentiated products for new markets

• To focus on cost reduction only

• To increase competition in existing markets

• To maintain the status quo in value delivery

Which two actions of the ERRC framework focus on the value delivery chain?

• Eliminate and Raise

• Reduce and Create

• Eliminate and Create

• Raise and Reduce

What does the 'Eliminate' action in the ERRC framework aim to achieve?

• To create new customer needs

• To increase the cost of value delivery

• To remove redundant processes that don't add value

• To add more processes to the value chain

How does the 'Reduce' action benefit a company's value offering?

• By increasing unnecessary elements

• By adding more features to the product

• By focusing on elements that don't meet customer needs

• By minimizing elements that are not important to customers

What is the purpose of the 'Create' action in the ERRC framework?

• To maintain existing customer bases

• To develop innovative products that expand customer service

• To reduce the cost of existing products

• To eliminate all existing market competitors