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MOAT Stacking · Strategy reference

What is Blue Ocean Strategy?

Understand value innovation and how Blue Ocean Strategy challenges the factors an industry competes on.

MOAT Stacking editorial contentPublished 2026-10-10

The short answer

The short answer

Blue Ocean Strategy, developed by W. Chan Kim and Renée Mauborgne, seeks new demand through value innovation rather than competing only on established industry factors. It asks what to eliminate, reduce, raise, and create in the offer. A new positioning statement or an empty area on a map does not by itself establish a viable blue ocean.

01

What do eliminate, reduce, raise, and create mean?

Eliminate factors customers no longer need, reduce factors overprovided relative to their value, raise factors that deserve better delivery, and create benefits not previously offered. Examine the effects on both buyer value and the cost structure.

The strategy canvas compares the factors on which offers compete. It supports a conversation about difference; customer evidence must still establish whether the changed offer is useful and whether people will choose it.

02

How should the idea be tested?

Identify a specific need, include noncustomers or people choosing alternatives, and run a bounded test of the offer and economics. Check delivery feasibility and the effect on the existing business.

Connect the idea to VRIO and the MOAT lenses. A novel offer that is easy to copy, difficult to deliver, or uneconomic may create temporary interest without a durable advantage.

Further clarity

Questions owners ask

Does an empty space on a Brand Map show unmet demand?

No. Empty space may represent an opportunity or an offer customers do not want. Validate demand, willingness to choose, economics, and operational fit before treating it as a growth strategy.

Further reading

Sources & references

MOAT Stacking editorial content · Published 2026-10-10

This reference is educational. Use the evidence and context of your own business when applying these ideas.