What This Template Is For
Blue Ocean Strategy is about creating uncontested market space rather than competing head-to-head in crowded categories. The core idea is value innovation: simultaneously reducing costs by eliminating and reducing factors the industry competes on, while raising and creating new factors that deliver a leap in buyer value. The result is a product that makes the competition irrelevant instead of trying to beat them on the same dimensions.
This template walks you through the strategy canvas (a visual comparison of competitive factors), the four actions framework (Eliminate, Reduce, Raise, Create), and a buyer utility map. It is designed for PMs, product leaders, and founders evaluating whether their product is stuck in a "red ocean" of feature competition, or whether an opportunity exists to redefine the category.
The Blue Ocean Strategy glossary entry explains the theory. The Product Strategy Handbook covers how to move from strategic analysis to roadmap decisions. For evaluating whether a new market opportunity is large enough, use the TAM Calculator.
How to Use This Template
- Map the current strategy canvas. List the 6-10 factors your industry competes on. Plot your product and 2-3 competitors on a curve showing relative investment in each factor.
- Identify the red ocean patterns. Where are all competitors investing heavily in the same factors? These are the areas of convergent strategy.
- Apply the four actions framework. For each factor, ask: Should we Eliminate it? Reduce it below the industry standard? Raise it above the standard? What new factors should we Create?
- Plot the new value curve. Your new strategy canvas should look different from competitors. If the curves are similar, you have not achieved value innovation.
- Validate with buyers. Test your new value curve with target buyers. Do they care about the factors you are creating? Are they willing to give up the factors you are eliminating?
- Size the new market. Use the TAM Calculator and the Market Sizing framework to estimate the addressable market for your new positioning.
The Template
1. Analysis Metadata
| Field | Details |
|---|---|
| Product | [Product name] |
| Author | [Name, title] |
| Date | [Date] |
| Industry | [Current industry/category definition] |
| Key competitors | [2-3 competitors for strategy canvas comparison] |
2. Current Strategy Canvas
List the 6-10 factors your industry currently competes on. Rate your product and 2-3 competitors on each factor (1 = Low investment/performance, 5 = High investment/performance).
| Competitive Factor | Our Product | Competitor A | Competitor B | Competitor C |
|---|---|---|---|---|
| [Factor 1: e.g., Feature count] | [1-5] | [1-5] | [1-5] | [1-5] |
| [Factor 2: e.g., Price] | [1-5] | [1-5] | [1-5] | [1-5] |
| [Factor 3: e.g., Customer support] | [1-5] | [1-5] | [1-5] | [1-5] |
| [Factor 4: e.g., Integrations] | [1-5] | [1-5] | [1-5] | [1-5] |
| [Factor 5: e.g., Customization] | [1-5] | [1-5] | [1-5] | [1-5] |
| [Factor 6: e.g., Enterprise features] | [1-5] | [1-5] | [1-5] | [1-5] |
| [Factor 7] | [1-5] | [1-5] | [1-5] | [1-5] |
| [Factor 8] | [1-5] | [1-5] | [1-5] | [1-5] |
Red ocean indicators. [Where do all value curves look the same? Which factors show convergent investment across all players?]
3. Four Actions Framework
Eliminate
Which factors that the industry takes for granted should be eliminated entirely?
- ☐ [Factor to eliminate: e.g., "Per-seat pricing model that punishes team growth"]
- ☐ [Factor to eliminate: e.g., "Complex admin console that only IT teams use"]
- ☐ [Factor to eliminate]
Rationale. [Why can these be eliminated without losing buyer value?]
Reduce
Which factors should be reduced well below the industry standard?
- ☐ [Factor to reduce: e.g., "Feature count. Ship 5 features that work perfectly vs. 50 that work adequately"]
- ☐ [Factor to reduce: e.g., "Customization options. Opinionated defaults over infinite configuration"]
- ☐ [Factor to reduce]
Rationale. [Why is the industry over-serving on these factors?]
Raise
Which factors should be raised well above the industry standard?
- ☐ [Factor to raise: e.g., "Time-to-value. First insight in 5 minutes vs. industry avg of 2 hours"]
- ☐ [Factor to raise: e.g., "Collaboration. Real-time multiplayer editing vs. export-and-share"]
- ☐ [Factor to raise]
Rationale. [Why does raising these factors create a leap in buyer value?]
Create
Which factors should be created that the industry has never offered?
- ☐ [Factor to create: e.g., "AI-generated insights delivered proactively. Users receive answers without asking questions"]
- ☐ [Factor to create: e.g., "Embedded analytics inside Slack/Teams. Data meets people where they work"]
- ☐ [Factor to create]
Rationale. [Why do these new factors attract new buyers or non-customers?]
4. New Strategy Canvas
Plot your proposed new value curve alongside the current industry curve.
| Factor | Industry Average | Our New Curve | Change |
|---|---|---|---|
| [Eliminated factor] | [3-4] | 0 | Eliminated |
| [Reduced factor] | [4] | [1-2] | Reduced |
| [Existing factor unchanged] | [3] | [3] | No change |
| [Raised factor] | [2] | [4-5] | Raised |
| [Created factor] | 0 | [4-5] | Created |
Divergence check. Does the new value curve look different from competitors? If the shape is similar, revisit the four actions.
5. Three Tiers of Non-Customers
Blue Ocean Strategy targets non-customers, not just existing customers.
| Tier | Description | Size Estimate | Why They Do Not Buy Today |
|---|---|---|---|
| Tier 1: Soon-to-be | [People on the edge of your market who use your product minimally] | [Estimate] | [Reason] |
| Tier 2: Refusing | [People who consciously chose not to use your category of product] | [Estimate] | [Reason] |
| Tier 3: Unexplored | [People in distant markets who have never considered your category] | [Estimate] | [Reason] |
6. Value Innovation Test
- ☐ Does the new strategy simultaneously reduce costs AND increase buyer value?
- ☐ Does the value curve diverge from competitors rather than matching them?
- ☐ Does the strategy attract non-customers, not just steal share from competitors?
- ☐ Can you explain the strategy in a single sentence?
- ☐ Is the strategy difficult for competitors to imitate within 18 months?
Filled Example: TaskPilot (Project Management for Solo Consultants)
Current Industry (Project Management SaaS)
| Factor | TaskPilot (current) | Asana | Monday | Notion |
|---|---|---|---|---|
| Feature count | 4 | 5 | 5 | 5 |
| Team collaboration | 3 | 5 | 5 | 5 |
| Integrations | 2 | 5 | 4 | 4 |
| Customization | 2 | 4 | 5 | 5 |
| Price | 3 | 4 | 4 | 3 |
| Enterprise admin | 1 | 5 | 4 | 3 |
| Client-facing views | 1 | 1 | 2 | 1 |
| Time + invoicing | 0 | 0 | 1 | 0 |
Four Actions
Eliminate. Team collaboration features (target user works solo). Enterprise admin console. Per-seat pricing (solo = 1 seat always).
Reduce. Integrations (5 essential ones vs. 50). Customization (opinionated workflows for consultants).
Raise. Client-facing views (share project progress with clients via branded portal). Mobile experience (consultants work from anywhere).
Create. Built-in time tracking and invoicing. Proposal-to-project pipeline. Client communication log.
New Value Curve
| Factor | Industry Avg | TaskPilot Blue Ocean |
|---|---|---|
| Team collaboration | 5 | 0 (Eliminated) |
| Enterprise admin | 4 | 0 (Eliminated) |
| Integrations | 4 | 2 (Reduced) |
| Customization | 4 | 2 (Reduced) |
| Client-facing views | 1 | 5 (Raised) |
| Mobile experience | 2 | 5 (Raised) |
| Time tracking + invoicing | 0 | 5 (Created) |
| Proposal pipeline | 0 | 4 (Created) |
Non-customers. Tier 1: Consultants using Trello free tier minimally. Tier 2: Consultants using spreadsheets because PM tools feel like "enterprise overkill." Tier 3: Freelancers who track projects in email and notebooks.
Key Takeaways
- Blue Ocean Strategy creates uncontested market space by making competition irrelevant
- The four actions framework (Eliminate, Reduce, Raise, Create) restructures your value curve
- Target non-customers (three tiers), not just existing customers
- The new value curve must diverge from competitors. If curves look similar, you are still in a red ocean
- Validate the new value curve with buyers before committing to a full roadmap shift
About This Template
Created by: Tim Adair
Last Updated: 3/4/2026
Version: 1.0.0
License: Free for personal and commercial use