qa-aman Overview
Based on "Blue Ocean Strategy" by W. Chan Kim & Renee Mauborgne. Most competitive analysis maps what competitors do and tries to do it better - this is red ocean thinking. Blue Ocean Strategy asks a different question: what can we eliminate, reduce, raise, or create to make competition irrelevant?
Workflow
Step 1: Define the scope
- Is this for a specific feature or the whole product?
- What decision will this analysis inform?
- Who are the direct and indirect competitors?
Cap at 5-7 competitors. More dilutes the analysis.
Step 2: Build the Strategy Canvas
Plot competitors on a graph:
- X-axis: Competing factors (price, speed, features, support, UX, etc.)
- Y-axis: Offering level (low to high) for each factor
This is the "as-is" state. Where do all competitors cluster? That cluster is the red ocean.
Step 3: Apply the Four Actions Framework
For each competing factor, ask:
| Action | Question | Example |
|---|---|---|
| Eliminate | What do all competitors offer that adds no real value? | Eliminate: complex onboarding wizards |
| Reduce | What can we offer well below industry standard? | Reduce: feature count, focus on core use case |
| Raise | What should we raise well above the industry standard? | Raise: response time, documentation quality |
| Create | What should we offer that no competitor does? | Create: role-based install, book-grounded methodology |
Step 4: Draw the "to-be" value curve
Plot where your product sits after applying the four actions. A differentiated value curve:
- Has a different shape than competitors
- Focuses on a few factors rather than spreading thin
- Has a compelling tagline: "The only X that does Y for Z"
Step 5: Identify non-customers
Blue Ocean insight: the biggest opportunity is often in people who don't use any competitor today. Who are the non-customers, and why aren't they buying? Three tiers:
- Tier 1: Soon-to-be non-customers (use reluctantly, would switch)
- Tier 2: Refusing non-customers (consciously chose alternatives)
- Tier 3: Unexplored non-customers (never considered this category)
Step 6: State implications
"Given this analysis, we should consider..." - 2-3 concrete takeaways. No implications = just research, not strategy.
Anti-Patterns
1. Red ocean thinking Bad: "Competitor X has feature Y, so we need feature Y." Good: Apply the four actions. Maybe feature Y should be eliminated or reduced.
2. Competing on all dimensions Bad: Value curve that tries to be high on every factor. Good: A focused curve that excels on 2-3 factors and consciously deprioritizes others.
3. Ignoring non-customers Bad: Analysis only covers existing market users. Good: Tier 1/2/3 non-customer analysis often reveals larger opportunities than competing for existing users.
4. No strategy canvas Bad: Bullet list of what competitors do. Good: Visual strategy canvas that makes the competitive landscape scannable.
Quality Checklist
- Scope defined - feature vs. product, decision it informs
- Strategy canvas built with competing factors on X-axis
- Four Actions Framework applied: eliminate, reduce, raise, create
- "To-be" value curve drawn and differentiated from competitors
- Non-customer tiers considered
- Analysis ends with concrete implications