The six paths framework is a way to find uncontested market space by looking across the boundaries companies usually accept: alternative industries, strategic groups, buyer groups, complementary products and services, functional or emotional appeal, and time. It is part of the blue ocean strategy work of W. Chan Kim and Renée Mauborgne of INSEAD, which began with their 1999 Harvard Business Review article “Creating New Market Space”.
How it works
Where you see it today
A person with a question can search the web, ask a colleague or ask a chatbot. AI assistants compete with search, tutoring and some professional advice at once, which is a cross-industry move, not a better search engine.
App builders aimed at people who cannot code sell software creation to a buyer group the developer-tools industry largely ignored. The product serves the person with the idea, not the engineer.
AI note-takers inside video calls fill a gap after the meeting, writing summaries and action items. They look across the complements of a call rather than competing on video quality.
The price of LLM output has fallen quickly but unevenly across tasks (Cottier et al., 2025). Kim and Mauborgne’s sixth path asks which irreversible trend like this one will open new markets, and how to be positioned before it does.
The six paths at a glance
How to use it
- Write down the boundaries your industry takes for granted before applying the paths.
- Interview non-customers, especially those who use an alternative industry.
- Map the full customer journey before, during and after use to find complement gaps.
- Pick one irreversible trend, such as falling AI costs, and sketch the market it creates.
- Test each idea with the four actions: eliminate, reduce, raise and create.
AI cuts across several of the six paths at once, so the clearest new markets tend to sit where an AI capability meets a buyer group that incumbents ignored. The Business Engineer uses the blue ocean lens to separate genuine new demand from incumbents adding AI features to the same red ocean.
Read: blue ocean strategy โExplore the platform โRelated: Blue ocean strategy ยท Red ocean strategy ยท Four actions framework ยท Value innovation ยท Buyer utility map
Frequently asked questions
What are the six paths in Blue Ocean Strategy?
Looking across alternative industries, strategic groups, buyer groups, complementary products and services, functional-emotional appeal, and time.
Who created the six paths framework?
W. Chan Kim and Renรฉe Mauborgne of INSEAD, as part of their blue ocean strategy work, which they began publishing in Harvard Business Review in 1999.
How is the six paths framework different from competitive analysis?
Competitive analysis studies rivals inside accepted boundaries; the six paths look across those boundaries to find demand nobody serves yet.
How does AI relate to the six paths?
AI products often cross industry lines, reach new buyer groups and add complementary services, which are three of the six paths.
Sources
- Kim and Mauborgne, Six Paths Framework, Blue Ocean Strategy (official site)
- W. Chan Kim and Renรฉe Mauborgne (1999), Creating New Market Space, Harvard Business Review
- Cottier, Snodin, Owen and Adamczewski (2025), LLM inference prices have fallen rapidly but unequally across tasks, Epoch AI
The full guide
The complete explainer, cleaned up and reformatted for mobile.
The six paths framework was created by Chan Kim and Renee Mauborgne, authors of the bestselling 2005 book Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant. The six paths framework encourages organizations to identify blue ocean strategies that increase their competitive advantage.
Understanding the six paths framework
Within every industry, most companies compete on the same basic factors such as features or price. Over time, these companies become more and more similar with each pitted against the others for a slice of the same pie. Markets exemplified by fierce competition and little differentiation are associated with red ocean strategies.
Blue ocean strategies, on the other hand, call upon the company to search out blue, unchartered waters where there are no competitors and thus more profit. These strategies encourage the organization to look beyond its market, industry, and customer base since the insular approach does not tend to favor competitive advantage.
The six paths of a blue ocean strategy
Below is a look at each of the six paths an organization can take to think outside the box:
1 โ Look across alternative industries
Many companies have a narrow view of their environment, believing their products and services exist in a single, static industry. But there also exist alternative industries, or those that sell products and services with the same purpose but with a different function or form.
Consider the probiotic yogurt drink Yakult. The product competes in one industry with other health drinks and juices, but it also competes with the pharmaceutical industry. But since neither would consider Yakult to be their competition, the brand exists in a blue ocean that spans multiple industries.
2 โ Look across strategic groups
Strategic groups can be defined as organizations that adopt a similar strategy built on either price or performance. These dimensions can be ranked in hierarchical order, which means a price increase tends to result in a subsequent increase in performance.
Most organizations sell products that are too focused on the middle of the spectrum. By focusing on budget products or premium products, the company may be able to differentiate itself.
3 โ Look across buyer groups
The blue ocean strategy is also furthered by determining the chain of buyers in a specific industry and which group the competition focuses on.
In addition to the actual purchasers of a product or service, this chain consists of:
- The users of the product.
- Influencers and regulators, who impact decision-making, and
- Intermediate buyers, or traders.
Instead of marketing to doctors and nurses, for example, Novo Nordisk developed an insulin pen that was marketed to the actual users instead. The pen was easy to use, travel-friendly, and attractively designed to make it more appealing than the traditional bottle and syringe.
4 โ Look across complementary product and service offering
In other words, what happens before, during, and after a product or service is used by the customer? By understanding the context of usage, the company can identify additional pain points and develop products for each.
When Philips were developing their range of kettles, they found that the lime in tap water caused scale to deposit inside the vessel. To solve a major pain point that was not related to the kettle itself, they devised a limescale filter that removed impurities as the kettle was filled.
5 โ Look across the functional-emotional orientation of an industry
For buyers, emotional appeal refers to the emotional utility of using a product or service. Similarly, functional appeal refers to the functional utility of a product or service based on utility and price.
Businesses who understand that their industry is dominated by one or the other can compete on functional appeal by adding emotion or on emotional appeal by subtracting function.
6 โ Look across time
Lastly, the blue ocean strategy encourages businesses to use initiative when monitoring trends. Some companies pace their actions to keep up with the development of a trend instead of determining how it will redefine customer value or impact their business model.
Rather than react passively to trends, Kim and Mauborgne advocate that businesses take an active role in shaping them. To do this, the trend must be decisive (relevant), irreversible, and have a clear trajectory. Businesses that shape trends and take advantage of them tend to be leaders in their industry.
When to Use the Six Paths Framework
The Six Paths Framework is a valuable tool for various strategic purposes:
1. Strategy Development
Use the framework during the strategy development process to explore new avenues for value innovation and market creation.
2. Market Analysis
Apply the framework to analyze your current market and identify opportunities for redefining industry boundaries.
3. Competitive Analysis
Use the framework to assess the strategic groups within your industry and consider alternative strategic groups to identify potential blue ocean opportunities.
4. Product or Service Development
When developing new products or services, consider the six paths to ensure that your offerings resonate with customers and stand out in the market.
5. Business Model Innovation
Explore different dimensions of your business model to create innovative ways to deliver value to customers.
How to Use the Six Paths Framework
Applying the Six Paths Framework effectively involves a structured approach that explores each of the six paths:
1. Look Across Industries
Identify industries or sectors that are related to your current business but operate in different ways. Consider how adopting their strategies or practices could lead to value innovation.
2. Explore Across Strategic Groups
Analyze the strategic groups within your industry and adjacent industries. Identify how you can differentiate your offerings from competitors within and outside your current group.
3. Investigate Across the Chain of Buyers
Examine the entire chain of buyers associated with your products or services. Identify pain points or unmet needs at various points along the chain and consider how addressing them can create value.
4. Consider Complementary Products and Services
Identify complementary products or services that customers commonly use alongside your offerings. Explore opportunities to bundle or integrate these elements to enhance overall value.
5. Evaluate Functional or Emotional Appeal
Assess whether your current value proposition focuses more on functional attributes or emotional appeal. Consider shifting the emphasis to the other dimension to create a differentiated strategy.
6. Explore the Time Factor
Anticipate future trends, shifts, and customer preferences by examining the evolving landscape of your industry. Identify opportunities to position your offerings strategically in response to changing dynamics.
Drawbacks and Limitations of the Six Paths Framework
While the Six Paths Framework is a powerful tool for innovation, it has certain drawbacks and limitations:
1. Complexity
Exploring all six paths can be a complex and resource-intensive process, requiring thorough research and analysis.
2. Ambiguity
Identifying and assessing opportunities across multiple dimensions may introduce ambiguity and uncertainty into the decision-making process.
3. External Factors
The framework assumes that organizations have control over market boundaries, but external factors such as regulations and industry norms can limit strategic options.
4. Market Validation
Effectively implementing a blue ocean strategy requires market validation to ensure that the new value proposition resonates with customers.
5. Not Suitable for All Industries
The Six Paths Framework may be more applicable to certain industries and market conditions than others.
What to Expect from Using the Six Paths Framework
Using the Six Paths Framework can lead to several outcomes and benefits:
1. Blue Ocean Opportunities
The framework helps organizations identify and create blue ocean opportunities by redefining industry boundaries and offering unique value propositions.
2. Competitive Advantage
By exploring alternative paths to value innovation, organizations can gain a competitive advantage by differentiating themselves from competitors.
3. Market Creation
The framework enables organizations to tap into previously untapped markets or customer segments, expanding their market presence.
4. Strategic Innovation
It encourages strategic innovation by challenging conventional thinking and exploring new dimensions of value delivery.
5. Market Growth
Implementing blue ocean strategies can lead to business growth by attracting new customers and increasing market share.
Complementary Frameworks to Enhance the Six Paths Framework
The Six Paths Framework can be further enhanced when combined with complementary frameworks and techniques:
1. SWOT Analysis
A SWOT analysis helps organizations assess their internal strengths and weaknesses, as well as external opportunities and threats, in the context of the six paths.
2. Customer Journey Mapping
Customer journey mapping helps organizations understand the customer experience at various touchpoints along the chain of buyers.
3. Scenario Planning
Scenario planning allows organizations to consider various future scenarios and develop strategies to adapt to different outcomes in the evolving time factor.
4. Design Thinking
Design thinking methodologies can be applied to explore functional and emotional dimensions of value delivery and customer experience.
5. Business Model Canvas
The Business Model Canvas provides a structured framework for analyzing and designing various components of a business model, aligning with different paths of the Six Paths Framework.
Conclusion
The Six Paths Framework from “Blue Ocean Strategy” is a powerful tool for creating innovative and differentiated business strategies.
By exploring the six dimensions of value innovation, organizations can redefine industry boundaries, tap into new markets, and gain a competitive edge.
While the framework has some complexities and limitations, its benefits in driving strategic innovation, market creation, and competitive advantage make it a valuable tool for organizations seeking to break away from traditional industry boundaries and seize new opportunities.
When combined with complementary frameworks and techniques, the Six Paths Framework becomes an even more potent force for strategic exploration and innovation, enabling organizations to chart their course toward blue oceans of opportunity.
Case Studies
Smart Home Technology
- Alternative Industries: Smart home technology companies often consider industries beyond just home automation. For instance, they may explore partnerships with health and wellness companies to create smart devices for elderly care, expanding their market beyond traditional home automation.
- Strategic Groups: Companies can choose to differentiate by offering budget-friendly smart home solutions for cost-conscious consumers or premium, high-end products for luxury markets, rather than competing in the crowded middle market.
- Buyer Groups: By analyzing different buyer groups within the smart home ecosystem, such as homeowners, property managers, or home builders, companies can tailor their products to specific needs and pain points.
- Complementary Products and Services: Smart home providers can expand their offerings to include services like home security monitoring or energy efficiency consulting, addressing additional needs that arise in the context of smart home technology.
- Functional-Emotional Orientation: Companies can differentiate by emphasizing either the functional aspects (e.g., energy savings, security) or the emotional aspects (e.g., comfort, convenience) of their smart home products, based on industry trends and customer preferences.
- Time: Proactive companies shape industry trends by anticipating future needs. For example, a company may invest in researching and developing new technologies that anticipate emerging demands, such as integrating augmented reality (AR) into smart home solutions.
Food Delivery Services
- Alternative Industries: Food delivery services can explore alternative industries by partnering with grocery stores to offer not only prepared meals but also grocery delivery services, expanding their reach beyond just restaurant deliveries.
- Strategic Groups: Companies can differentiate by focusing on budget-friendly meal options or premium gourmet deliveries, catering to various customer segments and pricing strategies.
- Buyer Groups: Analyzing different buyer groups, such as individual consumers, offices, or event planners, allows companies to tailor their services to meet specific needs and preferences.
- Complementary Products and Services: In addition to meal delivery, companies can offer related services like wine pairings, recipe kits, or cooking classes, providing additional value to customers.
- Functional-Emotional Orientation: Companies can compete based on either the functional aspects (e.g., fast delivery, reliability) or the emotional aspects (e.g., the joy of dining, convenience) of their food delivery services, adapting to industry trends and customer demands.
- Time: Forward-thinking companies shape trends by introducing innovative concepts like eco-friendly packaging, healthy meal options, or contactless delivery methods, setting new industry standards.
Electric Vehicle (EV) Industry
- Alternative Industries: The EV industry can explore alternative industries by collaborating with energy companies to develop integrated charging and energy storage solutions, expanding their influence beyond just vehicle manufacturing.
- Strategic Groups: Companies can differentiate by offering affordable, entry-level EV models or premium, high-performance EVs, catering to diverse consumer preferences and budgets.
- Buyer Groups: Analyzing different buyer groups, such as individual consumers, fleets, or government agencies, helps companies customize their EV offerings to meet specific usage requirements.
- Complementary Products and Services: EV manufacturers can consider complementary services like charging network expansion, vehicle maintenance packages, or energy management solutions to enhance the overall EV ownership experience.
- Functional-Emotional Orientation: Companies can compete based on the functional aspects (e.g., range, charging speed) or the emotional aspects (e.g., environmental consciousness, sleek design) of their EVs, adapting to industry trends and consumer sentiments.
- Time: Innovative companies shape industry trends by investing in cutting-edge battery technology, autonomous driving features, and sustainable materials, influencing the future direction of the EV market.
Healthcare Industry
- Alternative Industries: Healthcare organizations can explore alternative industries by collaborating with technology companies to develop telemedicine platforms or wearable health devices, extending their reach beyond traditional healthcare services.
- Strategic Groups: Healthcare providers can differentiate by offering specialized services for specific medical conditions or premium healthcare packages, addressing diverse patient needs and preferences.
- Buyer Groups: Analyzing different buyer groups, such as patients, insurers, or government agencies, enables healthcare providers to tailor their services and payment models to meet specific requirements.
- Complementary Products and Services: Providers can consider complementary offerings like wellness programs, remote monitoring solutions, or personalized treatment plans to enhance patient care and outcomes.
- Functional-Emotional Orientation: Healthcare organizations can compete based on the functional aspects (e.g., treatment effectiveness, cost-efficiency) or the emotional aspects (e.g., patient-centered care, trust) of their services, adapting to industry trends and patient expectations.
- Time: Forward-thinking healthcare organizations shape trends by embracing digital health innovations, adopting predictive analytics for di
Key takeaways
- The six paths framework encourages organizations to identify blue ocean strategies that increase their competitive advantage. It was created by Chan Kim and Renee Mauborgne of blue ocean strategy fame.
- Blue ocean strategies call upon the company to search out blue, unchartered waters where there are no competitors and thus more profit. This requires bold, non-insular, out-of-the-box thinking.
- The six paths framework consists of six specific actions that may yield a competitive advantage. The business can choose to look across alternative industries, buyer groups, strategic groups, or time. Alternatively, it can look at complementary products and services or their functional and emotional components.
Key Highlights
- Introduction to the Six Paths Framework:
- Developed by Chan Kim and Renee Mauborgne, authors of “Blue Ocean Strategy.”
- Aims to help organizations identify blue ocean strategies that enhance their competitive advantage.
- Differentiating Red and Blue Ocean Strategies:
- Most companies in industries compete on similar factors, leading to intense competition and little differentiation (red ocean strategies).
- Blue ocean strategies encourage companies to explore uncharted waters with no competition for greater profitability.
- Blue ocean strategies require looking beyond the current market, industry, and customer base.
- The Six Paths of a Blue Ocean Strategy:
- Alternative Industries: Consider industries selling products with different functions but similar purposes. (Example: Yakult competing not only with health drinks but also pharmaceuticals.)
- Strategic Groups: Differentiate by focusing on budget or premium products instead of the middle ground.
- Buyer Groups: Analyze different stages in the buyer chain (users, influencers, intermediaries) to identify unmet needs.
- Complementary Products and Services: Develop offerings that address pain points before, during, and after using a product.
- Functional-Emotional Orientation: Compete by adding emotion to functional products or vice versa, based on industry trends.
- Time: Shape trends actively rather than passively following them, creating leadership in the industry.
- Key Takeaways:
- The Six Paths Framework facilitates the discovery of blue ocean strategies for competitive advantage.
- Blue ocean strategies involve exploring new, uncontested market spaces.
- The framework includes six paths: alternative industries, strategic groups, buyer groups, complementary products/services, functional-emotional orientation, and time.
- These paths encourage innovative and out-of-the-box thinking to create unique value propositions and differentiate from competitors.
Read more
- Porterโs Five Forces
- Competitive Advantage
- Business Strategy Frameworks
- Blue Ocean Strategy
- BCG Matrix
- Ansoff Matrix
- Profit Margins
- Competitive Moat




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