Harrison Hayes proposes a Blue Ocean Strategy for Company X focused on drug delivery. They will examine 6 paths to reconstruct market boundaries, including alternative markets, strategic groups, buyers, complementary products, emotional vs functional appeal, and future trends. Harrison Hayes will create a Strategy Canvas to illustrate the industry and Company X's current value curve. They will develop an Eliminate-Reduce-Raise-Create grid to identify factors to change in order to create a new value curve and untapped market for Company X.

1. Harrison Hayes and Company X:
Blue Ocean Strategy for Drug Delivery

2. Date
Name
Title
Company X
Any Street
Any City
Any Country
Dear Sir,
Harrison Hayes has incorporated valuable feedback from Company X and is pleased to respond to
their request for an internal structure in the development of a Blue Ocean Strategy.
This proposal will clearly outline how the Blue Ocean Strategy and how it will be implemented for
Company X. We will detail each of the six principles of Blue Ocean and how Harrison Hayes will
address each one.
Harrison Hayes, along with its partnership with the Company X team, will produce an internal think
tank utilizing the Blue Ocean Strategy in order to gain a new market place/new customers for
Company X.
We strongly believe that our methodology and expertise will provide you with a final deliverable
that will exceed your expectations.
Sincerely,
Bill Smith
Managing Director
Harrison Hayes, LLC
Charlotte, NC

3. 1Company X – Blue Ocean
Strategy
BLUE OCEAN
Overview
For this particular project, Harrison Hayes will deploy a Blue Ocean Strategy
that will focus on drug delivery. A “Blue Ocean” is defined as untapped
market space, demand creation, and the opportunity for highly profitable
growth. In most cases, a blue ocean is created above and beyond typical
industry standards. In fact, most blue ocean markets are created from
within “red oceans” through the expansion of the existing industry
standards/boundaries. “Red Oceans” markets can be described as the
typical competitive industry: competitors attempting to out-perform each
other and gain a greater share of the market.
The ultimate end-goal of Blue Ocean is to create a new market space, void of
competition and where the demand for services is uncontested. Blue Ocean
can be achieved by not viewing the competition as the standard of success.
Companies that deploy a Blue Ocean strategy follow a different logic that is
referred to as Value Innovation. The underlying premise of Value
Innovation is that companies make the competition irrelevant by creating
and opening a new, uncontested market space. Therefore, this proposal will
clearly outline the Blue Ocean Strategy that Harrison Hayes will utilize to
provide a new market for Company X. Harrison Hayes will closely mimic the
traditional Blue Ocean Strategy and focus on the six principles, which are
outlined below.
PROJECT SCOPE
This project will be global in nature and focus on a Blue Ocean Strategy
concentrating on identifying new customers and bridging the gap to existing
customers. Additionally, Harrison Hayes will focus on broad, top-line,
“mega-structures” that will serve as a basis for an internal Think Tank for
Company X.
PROJECT OBJECTIVES
The overall objective of this project is for Harrison Hayes, in conjunction
with Company X, to develop a Blue Ocean Strategy that Company X can
implement internally in order to identify and target new potential customers
and bridge the gap to existing customers. Specific objectives are as follows:
 Development of a Blue Ocean Strategy for Company X that it can
implement internally and geared towards identifying new customers
and markets within drug delivery.
 Development of a system to bridge new customers to Company X’s
existing customer base.
 Development of an internal process that will serve as a Think Tank to
serve as the identification and assessment of trending/mega-trending
and as an overall vision for the new market.

4. 2Company X – Blue Ocean
Strategy
METHODOLOGY
Harrison Hayes proposes to begin the project by meeting with the Company
X project team to conduct due diligence and review currently available
information. The purpose of this meeting is to verify the scope of the
assignment, project objectives, answer questions, and review the timeline.
Harrison Hayes actively engages our clients in collaborative, interactive
dialogue throughout the project. We suggest weekly meetings to review and
assess the direction and progress of the project.
Harrison Hayes proposes to first meet with the Company X project team in
order to better understand Company X’s current customers and position in
the market. The outcome of this meeting will provide a framework and
foundation for the development of a Blue Ocean Strategy as a whole. Once
Harrison Hayes has gathered information about Company X’s current state
in the market, we will begin to deploy the first principle of Blue Ocean
Strategy. The principles of Blue Ocean strategy include:
 Reconstruction of Market Boundaries
 Focus on the Big Picture
 Reach beyond Existing Demand
 Strategic Sequence
 Overcome Key Organizational Hurdles
 Execution
In order to best fulfill a Blue Ocean Strategy, Harrison Hayes will, in
conjunction with Company X, construct a Strategy Canvas complete with
value curves of the industry. Harrison Hayes will also utilize the Four
Actions Framework in order to determine what factors should be Reduced,
Created, Raised, and Eliminated in a particular market. To supplement the
Four Actions Framework, Harrison Hayes will illustrate these findings in a
Eliminate-Reduce-Raise-Create Grid. These two items will serve as the
foundation for Value Innovation, which is essential to the successful creation
of a Blue Ocean market. These tools, along with the Six Principles, are
outlined in subsequent sections.

5. 3Company X – Blue Ocean
Strategy
MARKET BOUNDARY
RECONSTRUCTION
In the Reconstruction of Market Boundaries, Harrison Hayes will examine
and outline six (6) different paths. Once outlined, Harrison Hayes will
present each path the Company X for them to select the most appropriate
and viable path for further examination and exploration. The six (6) paths
include:
 Examination of alternative markets
 Examination of strategic groups within the existing drug delivery
market
 Examination of different buyers of drug delivery devices
 Examination of products complimentary to drug delivery
 Examination of drug delivery buyer appeal (emotional or
functional)*
 Assessment of the future of the business
Each of the paths listed above is outlined in more detail below.
Path 1: Examination of Alternative Markets
In this path, Harrison Hayes will examine companies that produce
alternative products or devices. Within the drug delivery space, patients
have a wide range of delivery formats in which to choose such as injection,
oral, topical, rectal, optical, nasal, etc. Company X currently offers its
customers different options within the injection method for drug delivery.
An inhaler serves the same objective as a syringe: it enables a drug to enter
the body. It is important to note that a syringe and inhaler are not
substitutes, but rather alternative forms of drug delivery. Insulin is a drug
that best illustrates this example. A person may either inject or inhale
insulin in order to achieve the proper absorption of the drug. Syringes and
pen needles are very similar in form, i.e. they are both injection devices.
Therefore, a syringe and pen needle would serve as substitutes for one
another. On the other hand, an alternative form of delivery would be
inhaled insulin through the use of an inhaler.
As part of this assessment, Harrison Hayes will examine why patients
choose, or avoid, a particular delivery method. Harrison Hayes will examine
and assess reasons why patients choose one drug delivery method in order
to determine the potential for an unexplored market. Possible reasons why
patients choose one drug delivery method over another include: needle fear,
difficulty swallowing, type of condition, drug availability, cost, prescription,
method of absorption, etc. (NOTE: This will be similar to a Harrison Hayes
Voice of the Customer study).
*
In drug delivery, it is clear that the appeal is functionality. Harrison Hayes will examine how this buyer
appeal could become more emotional.

6. 4Company X – Blue Ocean
Strategy
Path 2: Strategic Groups within the Industry
A second path Harrison Hayes proposes to explore will be different strategic
groups that currently exist within the injectable drug delivery space. In
order to identify the strategic differences within the injectable drug delivery
industry, Harrison Hayes will interview and examine patients’ thoughts on
the different injectable drug delivery mechanisms (NOTE: This will be
similar to a Harrison Hayes Voice of the Customer study). In doing so,
Harrison Hayes will determine what factors cause a customer to select a
particular mode of injectable drug delivery over another.
Within the injectable drug delivery space, there are largely two options: pen
devices and syringes. Pen needles/devices are widely considered a more
premium product over syringes. Therefore, Harrison Hayes will attempt to
determine why a patient/user opts to use a pen device rather than a syringe,
or vice versa. Reasons may include convenience, ease of use, cost, visibility,
psychological mindset, among many others.
The overall purpose of this path is to determine if there are in fact potential
gaps worth exploring within the injectable drug delivery space that
Company X would want to explore further should this path be selected.
Path 3: Chain of Buyers
In every industry, there are numerous buyers involved in the buying
decision process. In general terms there are three (3) main categories:
purchasers, users, and influencers. In Company X’s case, purchasers include
procurement directors for chain pharmacies, wholesalers, hospitals, etc.
The actual users include the end-patient and healthcare providers. The most
notable influencers within Company X’s industry consist of one major group:
practicing physicians. Historically, Company X has largely focused its efforts
on physicians, and more recently, the patients themselves.
In this particular path, however, Harrison Hayes will challenge this
conventional wisdom by identifying and assessing new buyer groups.
Potential new buyer groups Harrison Hayes proposes to explore include:
 Practicing Pharmacists
 Veterinarians
 Home Health Providers
 Nurses
 Note: Additional Buyers will emerge as the project moves forward

7. 5Company X – Blue Ocean
Strategy
Path 4: Complementary Product/Service Offerings
Very few products exist today that can be used alone. Cell phones need
batteries and automobiles need gasoline. The injectable medical device
industry is not an exception. Company X must heavily rely upon the
pharmaceutical industry to produce injectable drugs; similarly, Company X
must rely on the physician to prescribe Company X injection devices.
For this particular path, the challenge is to determine where untapped value
may reside within complementary products and services. In order to fulfill
this objective, Harrison Hayes will consider a “total solution” based around
the use of Company X’s injectable products. The “total solution” will consist
of what happens before, during, and after the product is used.
Complementary spaces based around injectable devices that Harrison Hayes
will examine include:
 Sharps disposal programs and products
 Physician education programs (how a Rx is written)
 Proper injection technique
 Injection aids
 Note: Additional complementary areas will emerge
Path 5: Functional/Emotional Appeal to Buyers
In most industries, companies appeal to potential buyers through functional
or emotional appeal. Within the injectable drug delivery industry, however,
the appeal is overwhelmingly functional. Functional appeal can be defined
as rational or on calculation of utility. In most all cases, a patient’s need for
an injectable medication is inelastic. A patient with diabetes, for example,
must purchase insulin syringes or pen devices in order to deliver insulin
(insulin pumps are not considered in this example due to their high cost),
therefore the appeal is functional.
Harrison Hayes will explore different scenarios that challenge the functional
appeal of buyers within the injectable drug delivery space and deliver these
results to the Company X project team. Potential emotional appeals that
Harrison Hayes may explore include:
 Green initiatives
 Proper disposal initiatives
 Good health programs
 Adverse event education
 Potential product “extras”

8. 6Company X – Blue Ocean
Strategy
Path 6: Future of the Industry
In the medical device industry, as in all industries, it is important to examine
external trends that will affect business over the course of time. It is
important to question how these inevitable changes will evolve, be adopted,
and become the industry standard. It becomes imperative that companies
foresee these changes today so it can prepare itself for future changes and
innovation. It becomes extremely important for companies to not only
assess these changes and how these changes will affect the customer, but
how a company may address, overcome, and continue to provide value to its
customers.
Future trends within the pharmaceutical and medical device industries are
paramount for success. In assessment of this path, Harrison Hayes will
utilize its trendspotting techniques, secondary research from its internal
database, and syndicated and public sources. Trendspotting is a form of
trending analysis focused on identifying unmet needs and emerging
opportunities that may provide near-term and intermediate-term value
generation for Company X’s customers. We do not guess trends; we detect,
analyze and evaluate them to make evidentially supported projections.
Examples of trends that Harrison Hayes will seek to uncover include:
 Emerging regulatory and reimbursement hurdles on a global basis
 Future medical, lifestyle, and healthcare related innovation
 Technological advances in drug delivery (nanorobotics)
 New prescription drugs entering the market
 Combinatorial opportunities
Path Selection
Once Harrison Hayes has properly assessed each path outlined above, it will
assimilate all the research data and present these findings to Company X.
Each path will be supported by secondary and primary research that has
been conducted throughout the process. Harrison Hayes will create a stack
ranking of these paths, complete with strategic recommendations as to
which path we believe would be the most viable selection for Company X.
This report will provide Company X will all the necessary insight around
each path and allow Company X to select the most lucrative and applicable
path for the remainder of the project.
Harrison Hayes will schedule a time to present and discuss our findings and
recommendations to Company X. During this meeting, we will discuss in
detail our research, findings and recommendations for Company X, including
areas of highest relevance for the selection of the most viable Blue Ocean
Strategy. From this report, Harrison Hayes proposes to have Company X
select the path of interest that will be further explored in the remaining
stages of the project.

9. 7Company X – Blue Ocean
Strategy
BIG PICTURE
In order to properly illustrate the “big picture” rather than the intricacies of
the drug delivery industry, Harrison Hayes proposes to construct a Strategy
Canvas. Harrison Hayes will construct the Strategy Canvas in conjunction
with Company X. The Strategy Canvas is meant to portray three (3) things:
show a strategic profile of the drug delivery industry, strategic profile of
current/potential competitors, and identifying which factors Company X
should invest. Additionally, the Strategy Canvas, once complete, should
portray Company X’s current and future Value Curve.
In order to properly construct the Strategy Canvas, Harrison Hayes will
provide current perceptions and principle factors about the drug delivery
market and its role in overall customer selection. Principle factors may
include characteristics such as:
 Price of drug delivery format
 Perception of quality
 End consumer awareness of drug delivery formats
 Ease of product use
 Education about the appropriate drug delivery format
 Brand positioning of COMPANY X products (how is COMPANY X
comparable/different from competition such as Competitor,
Competitor, etc.)
 Perception of pain in drug delivery
 Fear of drug delivery (i.e., needle fear; this may be related to
perception of pain)
Once these principle factors have been mutually agreed upon by Company X
and Harrison Hayes, Harrison Hayes will begin the Strategy Canvassing
process. The Strategy Canvas will be presented in graph format, inclusive of
the principle factors that were previously agreed upon. Harrison Hayes will
first create a Strategy Canvas for the drug delivery industry as a whole.
Below is a sample of how the drug delivery industry’s Strategy Canvas may
appear.
Price Quality Product
Perception
Product
Awareness
Pain Ease of Use
Sample Value Curves for Drug Delivery
Pen Needle
Syringe
High
Low

10. 8Company X – Blue Ocean
Strategy
Harrison Hayes will then ask Key Executives within Company X (Executives
to be selected by Company X) in order to provide a current Strategy Canvas
for Company X. Harrison Hayes will analyze the feedback from the Company
X Executives in order to provide Company X’s current Value Curve within
the industry. When Company X’s Value Curve is placed on the industry
Strategy Canvas, it should clearly illustrate where Company X’s strategy is
focused, diverged, and compelling.
In order to create a new Value Curve for Company X, Harrison Hayes will
construct an Eliminate-Reduce-Raise-Create Grid based on the following
questions:
 Which of the previously agreed factors should be eliminated from
the drug delivery industry?
 Which factors should be reduced below the drug delivery industry
standard?
 Which factors should be raised above the drug delivery industry
standard?
 What new factors should be created that are not currently available
in the drug delivery market?
The first two questions will allow Company X and Harrison Hayes to best
determine insight into how to lessen the overall cost structure compared to
the existing competitors. The third question’s purpose is to uncover and
eliminate any compromises the market requires its customers to make. The
fourth question assists in the discovery of entirely new sources of value for
buyers within the drug delivery space. The end goal of these four (4)
questions is to explore how Company X can re-construct user value across
different therapeutic areas and assist in the identification of potential new
markets. Below is a sample of how Company X’s Eliminate-Reduce-Raise-
Create Grid may appear.
Eliminate
-Product perception
Raise
-Perception of pain
-Ease of use
Reduce
-Price
Create
-Injection aid program
Once the Eliminate-Reduce-Raise-Create Grid has been developed and
mutually agreed upon by Harrison Hayes and Company X, Harrison Hayes
will develop the updated Strategy Canvas, complete with the
updated/proposed Company X Value Curve. This new Strategy Canvas will
clearly illustrate and communicate both old and new strategic profiles for
Company X. Harrison Hayes will assist Company X in achieving each of the
points raised within the Big Picture process in order to successfully produce
a Blue Ocean Strategy.

11. 9Company X – Blue Ocean
Strategy
BEYOND EXISTING
DEMAND
The purpose of the third principle of Blue Ocean Strategy is to maximize the
size of the created Blue Ocean by reaching beyond existing demand.
Traditionally, companies attempt to grow their market by retaining and
expanding upon existing customers. Therefore, Harrison Hayes will assist
Company X in focusing not on existing customers, but on current non-
customers.
Blue Ocean separates non-customers into three tiers. The first tier is
defined as “soon-to-be” non-customers who are on the edge of the market,
waiting to jump ship. Second tier non-customers are those who consciously
choose against Company X’s current market/portfolio of products. The third
tier non-customers consist of the “unexplored” and are the farthest away
from your market. Below is a visual representation of the three tiers of
customers.
Three Tiers of Customers
Harrison Hayes will perform a market analysis of Company X’s current non-
customers as they relate to drug delivery. In this assessment, it is important
to note that focus should not be placed on a specific tier of customers.
Instead, Harrison Hayes will focus on identifying the customer group that
will provide the greatest return for Company X as well as which
identification of the customer base with the highest population.
In order to best identify the Blue Ocean tiers of customers, Harrison Hayes
will first meet with the Company X project team in order to obtain an
internal assessment of the current customer base. Based on this
information, Harrison Hayes can then perform an in-depth consumer
analysis. Harrison Hayes proposes to obtain this customer data through the
development of surveys that will be constructed in conjunction with the
Company X project team. Additionally, Harrison Hayes proposes to utilize a
Netnography study in order to best determine consumers’ thoughts and
feeling towards Company X’s products as a whole. Netnography is similar to
ethnography studies, but less intrusive. Netnography studies utilize online
observations and interactions that are valued as a cultural reflection that

12. 10Company X – Blue Ocean
Strategy
yields deep human understanding. The online environment offers unlimited
access to patients and physicians that will allow Harrison Hayes to gather
information unobtrusively and in a timely, efficient manner. Additionally,
information gathered in netnography studies is honest and unbiased.
Harrison Hayes will segment the identified customers into the appropriate
tiers, according to Blue Ocean Strategy, and present these findings to
Company X. These findings will be supported by primary and secondary
research that has taken place throughout this phase of the project. Harrison
Hayes will provide a strategic recommendation as to which customer group
would be the most viable and lucrative for Company X. From this report,
Harrison Hayes proposes to have Company X select the most appropriate
customer group for further examination and validation in order to move
forward with a successful Blue Ocean Strategy.
STRATEGIC SEQUENCE
Once Harrison Hayes and Company X have mutually agreed upon the
previous three (3) principles of Blue Ocean Strategy, Harrison Hayes
proposes to develop a strategic sequence for these initiatives. The fourth
principle of Blue Ocean Strategy will focus on validating the identified Blue
Ocean Strategies and determining their overall viability in the market. Blue
Ocean defines the Strategic Sequence of this process as follows:

13. 11Company X – Blue Ocean
Strategy
Buyer Utility
In order to determine buyer utility, Harrison Hayes proposes to develop a
Voice of the Customer study guide/questionnaire. This study guide will be
developed in conjunction with Company X in order to ensure the focus of the
project is being properly addressed. Harrison Hayes will construct the Voice
of the Customer study guide in accordance to Blue Ocean Strategy utilizing
the “Six Levers” of the buyer experience (Purchase, Delivery, Use,
Supplements, Maintenance, and Disposal). The overall goal of this particular
study is to determine customers overall perception and acceptance of the
proposed Blue Ocean product or service. Assuming feedback from the Voice
of the Customer study is positive; Harrison Hayes will make the
recommendation to move forward in the next step of strategic sequencing.
If feedback is negative, Harrison Hayes will recommend that Company X re-
consider the selected Blue Ocean drug delivery product/service.
Pricing
With the creation of a Blue Ocean product or service relating to drug
delivery, it will become extremely important that the product/service is
strategically priced. The appropriate strategic price will ensure that it will
produce an effective revenue stream for Company X and provide value for its
customers.
Harrison Hayes will address the customers’ pricing needs in the previously
mentioned Voice of the Customer study guide/questionnaire. This study
will provide immediate feedback as to customers’ perception of value.
Additionally, Harrison Hayes will perform a competitive intelligence piece
focusing on similar/related products both within and outside the industry.
Based on this primary and secondary research, Harrison Hayes will propose
three (3) different pricing options: Upper level pricing, Mid-level pricing,
and Lower-level pricing and make a strategic recommendation as to which
pricing option would be best suited for each global region.
Cost
Given the sensitivity to confidential information and Harrison Hayes’s lack of
understanding about Company X’s financial metrics, it would be our
recommendation to perform a cost analysis on an “as-needed” basis as
determined by Company X.
Internal Hurdles
In order to address internal hurdles within Company X, Harrison Hayes
recommends relying on the DIVISION team in order to determine what those
hurdles may be. Once the hurdles have been identified and agreed upon by
DIVISION and Harrison Hayes, we will mutually construct a platform to
address each specific hurdle.

14. 12Company X – Blue Ocean
Strategy
ORGANIZATIONAL HURDLES
& EXECUTION
In order for Blue Ocean Strategy to be successful, all of the stakeholders
within the Company X project team must “buy-in” to the strategy. As
mentioned in the previous section, Harrison Hayes recommends relying on
the DIVISION team to outline these organization hurdles as currently exist
and may exist in the future. Once these organizational hurdles are outlined,
Harrison Hayes and Company X can effectively create a successful
implementation strategy in which all the stakeholders can mutually agree
upon and put into practice. This methodology will ensure the successful
implementation of a Blue Ocean Strategy internally at Company X.
PROJECT TIMELINE
Harrison Hayes proposes to work on this project on a retainer basis until
Date X. Upon termination of this period, the agreement may be renewed by
Company X in six (6) month intervals.