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blending the blue ocean strategy framework
with the business model canvas

Business Model Canvas Value innovation Blending approaches

eliminate raise

228 + –costs +value = cost value
implications creation
reduce create
cost-side value-side

The Business Model Canvas consists of a right-hand Blue Ocean Strategy is about simultaneously increasing Blending Blue Ocean Strategy and the Business Model
value and customer-focused side, and a left-hand cost value while reducing costs. This is achieved by identify- Canvas lets you systematically analyze a business model
and infrastructure side, as descibed earlier (see p. 49). ing which elements of the Value Proposition can be elimi- innovation in its entirety. You can ask the Four Actions
Changing elements on the right-hand side has implica- nated, reduced, raised, or newly created. The fi rst goal Framework questions (eliminate, create, reduce, raise)
tions for the left-hand side. For example, if we add to is to lower costs by reducing or eliminating less valuable about each business model Building Block and imme-
or eliminate parts of the Value Proposition, Channels, features or services. The second goal is to enhance or diately recognize implications for the other parts of the
or Customer Relationship Building Blocks, this will create high-value features or services that do not signifi - business model, (e.g. what are the implications for the
have immediate implications for Resources, Activities, cantly increase the cost base. cost side when we make changes on the value side?
Partnerships, and Costs. and vice versa).

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