Create uncontested market space Make competition irrelevant Blue Ocean as a means for Business Model Innovation

From Red Ocean Strategy to Blue Ocean Strategy… Blue Ocean Red Ocean Create uncontested market place Make the competition irrelevant Create and capture new demand Break the value/cost trade-off Align the whole system of a company‘s activities in pursuit of differentiation and lower cost Compete in existing market place Beat the competition Exploit existing demand Make the value/cost trade-off Align the whole system of a company‘s activities its strategic choice of differentiation or lower cost Blue Ocean Basics Differences between Red Ocean and Blue Ocean

Create uncontested market place

Make the competition irrelevant

Create and capture new demand

Break the value/cost trade-off

Align the whole system of a company‘s activities in pursuit of differentiation and lower cost

Compete in existing market place

Beat the competition

Exploit existing demand

Make the value/cost trade-off

Align the whole system of a company‘s activities its strategic choice of differentiation or lower cost

The Six Principles of Blue Ocean Strategy A Blue Ocean is formulated and evaluated based on six principles which aim at reducing the risk concerned with each principle. Risks mitigated Reconstruct market boundaries Focus on the big picture, not the numbers Reach beyond existing demand Get the strategic sequence right Blue Ocean Basics Formulation Principles Evaluation Principles Overcome key organizational hurdles Build execution into strategy Search risk Planning risk Scale risk Business Model risk Organizational risk Management risk The 6 Principles

Formulating a Blue Ocean is done based on the methodology How to reshape your markets and propositions so that you become the to-beat company? Reconstruct market boundaries Focus on the big picture, not the numbers Get the strategic sequence right 6 paths: Visual Awakening Visual Exploration Visual Strategy Fair Reach beyond existing demand Look Across Alternative Industries Look Across Strategic Groups Within Industries Look Across the Chain of Buyers Look Across Complementary Product and Service Offerings Look Across Functional or Emotional Appeal to Buyers Look Across Time Blue Ocean Formulation Visual Communication Buyer utility Price Cost Adoption √ √ √ √ The Methodology

Look Across Alternative Industries

Look Across Strategic Groups Within Industries

Look Across the Chain of Buyers

Look Across Complementary Product and Service Offerings

Look Across Functional or Emotional Appeal to Buyers

Look Across Time

Formulating a Blue Ocean is done based on the methodology How to execute your Blue Ocean Strategy? Overcome key organizational hurdles Cognitive Motivational Political Build execution into strategy Blue Ocean Evaluation Resource Strategy formulation process Attitudes Behavior Strategy execution The Methodology

A Generic Business Model overview ECO System Value Configuration SUCCESS Distribution Channel Cost Structure Revenue Streams Customer Offer Finance Adapted from Alexander Osterwalder, The Business Model Ontology, a proposition in a design science approach Customer Relationship Value Proposition Customer Segment Core Capabilities Partner Network

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