# The Six Paths Framework

The Six Paths Framework provides six systematic ways to look beyond the conventional boundaries of an industry and discover blue ocean opportunities. Most companies define their competitive landscape narrowly: same industry, same strategic group, same buyer, same scope of product, same appeal, same point in time. Each path challenges one of these boundaries. This reference provides detailed exercises and real-world examples for each path.


## Table of Contents
1. [Overview of the Six Paths](#overview-of-the-six-paths)
2. [Path 1: Look Across Alternative Industries](#path-1-look-across-alternative-industries)
3. [Path 2: Look Across Strategic Groups](#path-2-look-across-strategic-groups)
4. [Path 3: Look Across the Chain of Buyers](#path-3-look-across-the-chain-of-buyers)
5. [Path 4: Look Across Complementary Products and Services](#path-4-look-across-complementary-products-and-services)
6. [Path 5: Look Across Functional or Emotional Appeal](#path-5-look-across-functional-or-emotional-appeal)
7. [Path 6: Look Across Time](#path-6-look-across-time)
8. [Workshop Format: Exploring All Six Paths](#workshop-format-exploring-all-six-paths)

---

## Overview of the Six Paths

| Path | Boundary Challenged | Core Question |
|------|---------------------|---------------|
| 1. Alternative Industries | Industry definition | What alternatives do buyers choose between? |
| 2. Strategic Groups | Strategic positioning | What if you bridged two strategic groups? |
| 3. Chain of Buyers | Buyer definition | Who else in the buyer chain can you target? |
| 4. Complementary Products | Scope of offering | What happens before, during, and after use? |
| 5. Functional-Emotional Appeal | Industry orientation | Can you switch the appeal type? |
| 6. Time/Trends | Time horizon | What trends will reshape buyer needs? |

Each path is independent. You do not need to explore all six. Often, one or two paths will yield the most promising blue ocean opportunities for your specific situation. However, exploring all six ensures you do not miss a breakthrough hiding in an unexpected direction.

## Path 1: Look Across Alternative Industries

### The Insight

Industries are narrowly defined by convention. But buyers choose between alternatives that cross industry lines. A person deciding how to spend a Friday evening chooses between restaurants, movies, concerts, and staying home with streaming. These are all alternatives serving the same job: "enjoyable evening out (or in)."

### Real-World Examples

| Company | Alternatives Bridged | Blue Ocean Created |
|---------|----------------------|-------------------|
| NetJets | Commercial first class vs. owning a private jet | Fractional jet ownership: luxury of private flying at fraction of ownership cost |
| Intuit QuickBooks | Hiring an accountant vs. manual bookkeeping | Simple software that replaces both for small businesses |
| Home Depot | Hiring a contractor vs. doing nothing | DIY with expert advice and all supplies in one location |
| Salesforce (early) | Enterprise CRM software vs. spreadsheets | Web-based CRM accessible to SMBs who could not afford or implement enterprise solutions |

### Exercise Template: Alternative Industries Analysis

**Step 1:** Define the fundamental job your buyer is trying to accomplish.

```
Our buyer's core job-to-be-done: _________________________________
```

**Step 2:** List all the ways buyers currently accomplish this job, including options outside your industry.

| Alternative | Industry | Key Advantages | Key Disadvantages |
|-------------|----------|----------------|-------------------|
| | | | |
| | | | |
| | | | |
| | | | |
| | | | |

**Step 3:** For each alternative, identify what it does better than your industry.

**Step 4:** Ask: What if we combined the best elements of multiple alternatives into one offering?

**Step 5:** Draft an ERRC grid based on cross-alternative insights.

```
Eliminate (from our industry): ___________________________________
Reduce (below our industry norm): ________________________________
Raise (above our industry norm, borrowed from alternatives): ______
Create (new, combining alternative strengths): ____________________
```

### Key Questions for Path 1

- Why do buyers switch between your industry and alternatives?
- What triggers a buyer to choose an alternative over your industry?
- What would make someone who currently uses an alternative consider your industry?
- What does the alternative offer that your industry does not?

---

## Path 2: Look Across Strategic Groups

### The Insight

Within every industry, companies cluster into strategic groups based on similar price/performance combinations. Luxury vs. economy. Full-service vs. self-service. Enterprise vs. SMB. Most companies compete within their group. Blue ocean opportunities emerge at the boundary between groups.

### Real-World Examples

| Company | Groups Bridged | Blue Ocean Created |
|---------|---------------|-------------------|
| Lexus | Luxury (Mercedes, BMW) and mass-market | Luxury quality at accessible pricing |
| Trader Joe's | Gourmet specialty stores and discount grocers | Affordable gourmet: unique, high-quality products at low prices in a fun environment |
| Toyota Camry | Economy cars and mid-range cars | Reliable, well-equipped car at economy price point |
| Warby Parker | Designer eyewear ($300+) and budget eyewear ($50) | Stylish, quality frames at $95 with home try-on |

### Exercise Template: Strategic Group Mapping

**Step 1:** Identify the strategic groups in your industry.

Map groups on two axes: Price (low to high) and a key performance dimension.

```
                    HIGH PERFORMANCE
                         |
            Group C      |      Group A
         (Niche premium) |   (Full premium)
                         |
   LOW PRICE ————————————+———————————— HIGH PRICE
                         |
            Group D      |      Group B
         (Basic/budget)  |   (Mid-range)
                         |
                    LOW PERFORMANCE
```

**Step 2:** For each group, list what they emphasize and what they sacrifice.

| Strategic Group | Emphasizes | Sacrifices |
|----------------|------------|------------|
| Group A | | |
| Group B | | |
| Group C | | |
| Group D | | |

**Step 3:** Identify the gap between groups.

- What would it take to deliver Group A's key advantage at Group B's price point?
- What does Group D sacrifice that a hybrid could restore?
- Where is there a "white space" between groups that no one occupies?

**Step 4:** Design a cross-group offering.

```
We will offer [Group ___]'s _____________ at [Group ___]'s _____________.
This is possible because we will eliminate: _________________________
And reduce: _____________________________________________________
```

### Key Questions for Path 2

- Why do buyers trade up to a higher strategic group? What triggers it?
- Why do buyers trade down to a lower strategic group? What makes them willing to sacrifice?
- Can you deliver the most valued elements of the higher group at the cost structure of the lower group?
- Is there a group that does not yet exist but logically should?

---

## Path 3: Look Across the Chain of Buyers

### The Insight

Most industries converge on a single buyer group out of habit. But the purchase chain typically includes multiple distinct roles: purchasers (who pay), users (who use), and influencers (who shape the decision). Shifting focus to a different buyer in the chain can unlock new value.

### Real-World Examples

| Company | Traditional Buyer | Shifted To | Blue Ocean Created |
|---------|-------------------|------------|-------------------|
| Bloomberg Terminal | IT departments (purchasers) | Traders (users) | Terminals with real-time analytics designed for traders, who then demanded them from IT |
| Novo Nordisk NovoPen | Pharmacies (purchasers) | Patients (users) | Insulin pen that patients loved using, pulling demand through the chain |
| SAP early days | IT departments (purchasers) | CFOs (influencers) | Sold business value to finance leaders who then mandated adoption |
| Salesforce | IT departments (purchasers) | Sales reps (users) | Self-service CRM that sales reps adopted from the bottom up |

### Exercise Template: Buyer Chain Analysis

**Step 1:** Map the complete buyer chain for your industry.

```
INFLUENCERS              PURCHASERS              USERS
(Who shapes the          (Who pays/approves       (Who uses the
decision?)               the purchase?)           product/service?)

1. ________________      1. ________________      1. ________________
2. ________________      2. ________________      2. ________________
3. ________________      3. ________________      3. ________________
```

**Step 2:** Identify which buyer your industry currently targets.

```
Our industry predominantly targets: [ ] Influencers  [ ] Purchasers  [ ] Users
```

**Step 3:** Explore the unmet needs of overlooked buyers.

| Buyer Role | Currently Targeted? | Top Unmet Needs | What They Value Most |
|------------|--------------------|-----------------|--------------------|
| Influencer | | | |
| Purchaser | | | |
| User | | | |

**Step 4:** Design a shift.

```
We will shift focus from _____________ to _____________.
Their key unmet need is: ________________________________________
We will serve this need by: _____________________________________
This is viable because: _________________________________________
```

### Key Questions for Path 3

- Who in the chain has the most frustration with the current offering?
- Who in the chain has the most influence but the least attention from the industry?
- What would happen if you designed the entire offering around a different buyer in the chain?
- Can you bypass one buyer entirely and go direct to another?

---

## Path 4: Look Across Complementary Products and Services

### The Insight

Products and services are rarely used in isolation. There is a broader context: what happens before, during, and after use. Pain points in complementary activities represent blue ocean opportunities if you can bundle solutions.

### Real-World Examples

| Company | Core Product | Complementary Pain Addressed | Blue Ocean Created |
|---------|-------------|-----------------------------|--------------------|
| Apple (iPod + iTunes) | Music player | Legal music acquisition was painful | Seamless hardware + software + content ecosystem |
| IKEA | Furniture | Childcare while shopping, eating during long shopping trips | In-store restaurants and childcare |
| Peloton | Exercise bike | Going to gym is time-consuming, classes have fixed schedules | At-home bike with live/on-demand classes |
| Nespresso | Coffee machine | Grinding beans, measuring, cleaning is tedious | Single-pod system eliminating all preparation friction |

### Exercise Template: Experience Mapping

**Step 1:** Map the complete buyer experience across all stages.

| Stage | What Buyer Does | Pain Points | Time Spent | Emotional State |
|-------|----------------|-------------|------------|-----------------|
| **Before purchase** | Research, compare, get approval | | | |
| **Purchase** | Order, pay, arrange delivery | | | |
| **Delivery/Setup** | Receive, install, configure | | | |
| **Core use** | Daily/regular use of the product | | | |
| **Complementary activities** | What they need alongside use | | | |
| **Maintenance** | Updates, repairs, renewals | | | |
| **Disposal/Replacement** | End-of-life, switching | | | |

**Step 2:** Identify the biggest pain points outside the core use stage.

**Step 3:** Ask: Which of these pain points could we solve by expanding our offering?

```
Pain point: ____________________________________________________
Current workaround: ____________________________________________
Our potential solution: _________________________________________
Cost to include: _______________________________________________
Value to buyer: ________________________________________________
```

**Step 4:** Design the bundled offering.

### Key Questions for Path 4

- What do buyers need to do before they can use your product?
- What are the biggest frustrations during the total experience, not just the core use?
- What complementary products do buyers always purchase alongside yours?
- What if you bundled the complement into your core offering?
- Where do buyers waste time in activities surrounding your product?

---

## Path 5: Look Across Functional or Emotional Appeal

### The Insight

Some industries compete primarily on function: price, features, specifications, performance metrics. Others compete primarily on emotion: brand image, feelings, status, aesthetics. Industries rarely compete on both. Shifting the orientation can create a blue ocean.

### Real-World Examples

**Functional to Emotional:**

| Company | Industry Norm (Functional) | Emotional Shift | Blue Ocean Created |
|---------|---------------------------|-----------------|-------------------|
| Swatch | Watches as precise timekeeping instruments | Watches as fashion accessories and self-expression | Affordable, collectible, fashion-forward watches |
| Starbucks | Coffee as a commodity caffeine delivery | Coffee as a "third place" experience | Premium coffee experience with ambiance and identity |
| Apple | Computers as functional tools (specs, processing power) | Computers as lifestyle and creativity expression | Design-centric products people love to own |

**Emotional to Functional:**

| Company | Industry Norm (Emotional) | Functional Shift | Blue Ocean Created |
|---------|--------------------------|-------------------|-------------------|
| The Body Shop | Cosmetics sold on beauty, glamour, youth | Cosmetics sold on natural ingredients, ethical sourcing | Values-based beauty brand |
| CEMEX | Cement sold on brand/relationship in developing markets | Cement sold on enabling homebuilding with financing and support | Complete home-building solution for low-income families |
| Dollar Shave Club | Razors marketed with sports celebrities and masculinity | Razors as simple, functional, affordable commodity | Subscription convenience without the brand tax |

### Exercise Template: Appeal Analysis

**Step 1:** Determine your industry's current orientation.

```
Our industry competes primarily on:
[ ] Functional factors (price, specs, features, performance)
[ ] Emotional factors (brand, image, feelings, status, experience)
[ ] Mixed (roughly balanced)
```

**Step 2:** List the current competing factors by type.

| Functional Factors | Current Investment (1-5) | Emotional Factors | Current Investment (1-5) |
|-------------------|------------------------|-------------------|------------------------|
| | | | |
| | | | |
| | | | |
| | | | |

**Step 3:** Explore the opposite dimension.

If your industry is functional, ask:
- What emotional elements could we add that would differentiate us?
- How do buyers feel when using our product? What would they prefer to feel?
- What identity or status could our offering confer?
- What experience could we create around the functional product?

If your industry is emotional, ask:
- What functional benefits are hidden under the emotional branding?
- What would happen if we stripped away the emotional premium and offered pure function at lower cost?
- Which emotional factors drive cost but not purchase decisions?
- What if we made the buying process radically transparent and functional?

**Step 4:** Design the cross-appeal offering.

```
We will shift from [functional/emotional] to [emotional/functional] by:
Eliminating: ___________________________________________________
Creating: ______________________________________________________
The buyer benefit: ______________________________________________
```

### Key Questions for Path 5

- Is your industry over-invested in functional OR emotional factors?
- What would it look like to be the most functional player in an emotional industry?
- What would it look like to be the most emotional player in a functional industry?
- Which emotional factors are buyers paying for but not truly valuing?
- Which functional needs are unmet because the industry focuses on emotions?

---

## Path 6: Look Across Time

### The Insight

Industries are shaped by external trends, but most companies adapt to trends reactively and incrementally. Blue ocean creators identify decisive trends early and build offerings that align with where the market is going, not where it is today.

### Real-World Examples

| Company | Trend Identified | Blue Ocean Created |
|---------|-----------------|-------------------|
| Apple iTunes | Digital music consumption was inevitable (post-Napster) | Legal digital music platform before the industry was ready |
| Tesla | Electric vehicles would become mainstream (environmental regulation + battery cost decline) | Premium EV brand positioned before mass adoption |
| Airbnb | Peer-to-peer economy + mobile-first travel booking | Home-sharing platform leveraging underutilized residential capacity |
| Zoom | Remote work was growing steadily (pre-pandemic) | Frictionless video conferencing for the distributed workforce era |

### Exercise Template: Trend Analysis

**Step 1:** Identify trends that are relevant to your industry.

Evaluate each trend against three criteria (from Kim and Mauborgne):

| Trend | Decisive to Industry? | Irreversible? | Has Clear Trajectory? | All Three = Yes? |
|-------|----------------------|---------------|----------------------|-------------------|
| | | | | |
| | | | | |
| | | | | |
| | | | | |
| | | | | |

A trend is actionable for blue ocean strategy only if it is decisive to the industry, irreversible, and has a clear trajectory. Speculative or reversible trends are too risky to build strategy around.

**Step 2:** For each qualifying trend, project the impact.

```
Trend: _________________________________________________________
Current state: _________________________________________________
Projected state in 3-5 years: __________________________________
Impact on buyer behavior: ______________________________________
Impact on cost structure: ______________________________________
Impact on industry boundaries: _________________________________
```

**Step 3:** Identify the blue ocean opportunity.

```
If [trend] continues, buyers will need: ________________________
Currently, the industry offers: ________________________________
The gap between future need and current offering: _______________
We can fill this gap by: _______________________________________
```

**Step 4:** Design the trend-forward offering using ERRC.

| Eliminate (irrelevant in the future) | Raise (more important in the future) |
|--------------------------------------|--------------------------------------|
| | |
| | |

| Reduce (less important in the future) | Create (new need driven by the trend) |
|---------------------------------------|---------------------------------------|
| | |
| | |

### Key Questions for Path 6

- What trends are irreversibly changing buyer behavior in your industry?
- What will your buyers need in 3-5 years that they do not need today?
- What current industry factors will become irrelevant as trends play out?
- Can you build for the future state now, before competitors react?
- What would a company founded 5 years from now look like?

---

## Workshop Format: Exploring All Six Paths

### Full-Day Workshop (6 hours)

This workshop systematically explores all six paths with a cross-functional team.

**Preparation:**
- Completed strategy canvas (current state)
- Customer and non-customer interview data
- Industry trend reports
- 8-12 cross-functional participants

**Agenda:**

| Time | Activity | Path |
|------|----------|------|
| 0:00-0:15 | Welcome, review strategy canvas, set objectives | - |
| 0:15-0:55 | Path 1: Alternative Industries (exercise + discussion) | 1 |
| 0:55-1:35 | Path 2: Strategic Groups (exercise + discussion) | 2 |
| 1:35-2:15 | Path 3: Chain of Buyers (exercise + discussion) | 3 |
| 2:15-2:45 | Lunch break | - |
| 2:45-3:25 | Path 4: Complementary Products (exercise + discussion) | 4 |
| 3:25-4:05 | Path 5: Functional-Emotional Appeal (exercise + discussion) | 5 |
| 4:05-4:45 | Path 6: Time/Trends (exercise + discussion) | 6 |
| 4:45-5:00 | Break | - |
| 5:00-5:30 | Synthesis: Which paths revealed the strongest opportunities? | All |
| 5:30-6:00 | Prioritize top 3 opportunities, assign next steps | All |

**Facilitation tips:**
- Spend no more than 40 minutes per path (10 min intro, 15 min exercise, 15 min discussion)
- Use a "parking lot" for ideas that come up outside the current path
- Have participants vote on the most promising insight from each path before moving on
- The synthesis session is the most important part: look for convergence across paths
- Assign one person to document all outputs in real time

### Half-Day Express Version (3 hours)

If time is limited, focus on the three paths most likely to yield results for your specific situation.

**How to choose which three paths:**
- If you are in a commodity market: Paths 1, 5, 4
- If you are in a complex B2B market: Paths 3, 4, 6
- If you are in a consumer market: Paths 1, 2, 5
- If you are in a rapidly changing market: Paths 6, 1, 4

### Output Checklist

After the workshop, you should have:

- [ ] At least 2-3 blue ocean opportunity ideas per path explored
- [ ] A ranked list of the top 5 opportunities across all paths
- [ ] For each top opportunity: a preliminary ERRC grid
- [ ] Assigned owners and timelines for deeper investigation
- [ ] Identified data gaps that need to be filled before decisions
- [ ] A plan for non-customer interviews to validate top opportunities
