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Blue ocean strategy martin limgenco


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Blue ocean strategy martin limgenco

  1. 1. BOS is the result of a decade-long study of 150strategic moves spanning more than 30 industriesover 100 years (1880-2000).BOS is the simultaneous pursuit of differentiationand low cost.The aim of BOS is not to out-perform thecompetition in the existing industry, but to createnew market space or a blue ocean, thereby makingthe competition irrelevant.
  2. 2. While innovation has been seen as arandom/experimental process where entrepreneursand spin-offs are the primary drivers – as argued bySchumpeter and his followers – BOS offerssystematic and reproducible methodologies andprocesses in pursuit of blue oceans by both new andexisting firms.
  3. 3. BOS frameworks and tools include: strategy canvas,value curve, four actions framework, six paths,buyer experience cycle, buyer utility map, and blueocean idea index.These frameworks and tools are designed to bevisual in order to not only effectively build thecollective wisdom of the company but also allow foreffective strategy execution through easycommunication.
  4. 4. BOS covers both strategy formulation and strategyexecution.The three key conceptual building blocks of BOS are:value innovation, tipping point leadership, and fairprocess.While competitive strategy is a structuralist theoryof strategy where structure shapes strategy, BOS is areconstructionist theory of strategy where strategyshapes structure.
  5. 5. As an integrated approach to strategy at the systemlevel, BOS requires organizations to develop andalign the three strategy propositions: valueproposition, profit proposition and peopleproposition.