This document summarizes key concepts from Blue Ocean Strategy by W. Chan Kim and Renee Mauborgne. It discusses how blue ocean strategy aims to create uncontested market space and make competition irrelevant by breaking the value-cost tradeoff. Key frameworks covered include the strategy canvas, four actions framework, buyer utility map, and sequence for validating blue ocean ideas. Overall, the document provides an overview of blue ocean strategy and the tools used to identify and capture new demand in unexplored market spaces.
The document summarizes key concepts from Blue Ocean Strategy. It discusses value innovation as creating value for both the company and buyers by eliminating or reducing competition factors and raising or creating new elements. It contrasts red ocean strategy of competing within existing industry boundaries versus blue ocean strategy of creating new market space without competition. The six principles of blue ocean strategy aim to reconstruct market boundaries, reach beyond existing demand, and overcome organizational hurdles to strategy execution. Tools like the strategy canvas, four actions framework, and profit model are presented to help visualize and implement blue ocean strategies.
The document summarizes several key concepts from Blue Ocean Strategy:
1. Value innovation is created by favorably affecting both cost structure and value proposition to buyers by eliminating/reducing competition factors and raising/creating new elements.
2. Blue ocean strategy aims to create new market space by breaking the value-cost tradeoff, while red ocean strategy pursues differentiation or low cost within existing industry boundaries.
3. Tools like the strategy canvas, four actions framework, and buyer utility map help analyze industries and formulate blue ocean strategies.
The document discusses key concepts from Blue Ocean Strategy, including:
1. Value innovation is created by favorably affecting both cost structure and value proposition to buyers. Costs are reduced by eliminating competition factors while buyer value is increased by offering new elements.
2. Blue ocean strategy aims to create new market space by breaking the value-cost tradeoff, while red ocean strategy involves competing in existing market space on factors like cost or differentiation.
3. Tools for developing blue ocean strategy include the strategy canvas, four actions framework, buyer utility map, and analyzing the buyer experience cycle. The strategic sequence and evaluating ideas on utility, price, cost and adoption are also discussed.
The document summarizes several key concepts from Blue Ocean Strategy:
1. Value innovation is created by favorably affecting both cost structure and value proposition to buyers by eliminating/reducing competition factors and raising/creating new elements.
2. Blue ocean strategy aims to create new market space by breaking the value-cost tradeoff, while red ocean strategy pursues differentiation or low cost within existing industry boundaries.
3. Tools like the strategy canvas, four actions framework, and buyer utility map help analyze industries and identify factors to eliminate, reduce, raise or create for blue ocean opportunities.
The document summarizes key concepts from "The Blue Ocean Strategy" book. It discusses how blue ocean strategy involves creating uncontested market space by making competition irrelevant. It outlines value innovation as the cornerstone, which creates value for both buyers and companies. It presents frameworks like the four actions grid to eliminate, reduce, raise or create factors to break value-cost tradeoffs. It also discusses visualizing strategies, sequencing ideas through buyer utility/price/cost/adoption tests, and avoiding imitations through value innovation moves.
Value innovation creates favorable impacts on both cost structure and value proposition to buyers. It reduces costs by eliminating unnecessary industry factors and lifts buyer value by creating new elements the industry has never offered before. Over time, costs are reduced further through scale economies generated by superior value. Red ocean strategy competes in existing market space while blue ocean strategy creates uncontested market space to make competition irrelevant. The six principles of blue ocean strategy are reconstructing market boundaries, focusing on the big picture, reaching beyond existing demand, getting the strategic sequence right, overcoming organizational hurdles, and building execution into strategy.
2011 will bring significant changes to a wide variety of industries. While many organization believe they are innovating for a better tomorrow in reality they are only making modification of today's familiar territory.
Blue Ocean Strategy challenges leaders to work through a meticulous set of frameworks that flesh out opportunities that are not obvious using yesterday's tool kits. Blue Ocean Strategy requires a responsible imagination. That is, the ability to dream and see beyond today while applying analytical tools that assist in risk reduction and genuine breakthrough thinking and valid value innovations.
The document summarizes key concepts from Blue Ocean Strategy. It discusses value innovation as creating value for both the company and buyers by eliminating or reducing competition factors and raising or creating new elements. It contrasts red ocean strategy of competing within existing industry boundaries versus blue ocean strategy of creating new market space without competition. The six principles of blue ocean strategy aim to reconstruct market boundaries, reach beyond existing demand, and overcome organizational hurdles to strategy execution. Tools like the strategy canvas, four actions framework, and profit model are presented to help visualize and implement blue ocean strategies.
The document summarizes several key concepts from Blue Ocean Strategy:
1. Value innovation is created by favorably affecting both cost structure and value proposition to buyers by eliminating/reducing competition factors and raising/creating new elements.
2. Blue ocean strategy aims to create new market space by breaking the value-cost tradeoff, while red ocean strategy pursues differentiation or low cost within existing industry boundaries.
3. Tools like the strategy canvas, four actions framework, and buyer utility map help analyze industries and formulate blue ocean strategies.
The document discusses key concepts from Blue Ocean Strategy, including:
1. Value innovation is created by favorably affecting both cost structure and value proposition to buyers. Costs are reduced by eliminating competition factors while buyer value is increased by offering new elements.
2. Blue ocean strategy aims to create new market space by breaking the value-cost tradeoff, while red ocean strategy involves competing in existing market space on factors like cost or differentiation.
3. Tools for developing blue ocean strategy include the strategy canvas, four actions framework, buyer utility map, and analyzing the buyer experience cycle. The strategic sequence and evaluating ideas on utility, price, cost and adoption are also discussed.
The document summarizes several key concepts from Blue Ocean Strategy:
1. Value innovation is created by favorably affecting both cost structure and value proposition to buyers by eliminating/reducing competition factors and raising/creating new elements.
2. Blue ocean strategy aims to create new market space by breaking the value-cost tradeoff, while red ocean strategy pursues differentiation or low cost within existing industry boundaries.
3. Tools like the strategy canvas, four actions framework, and buyer utility map help analyze industries and identify factors to eliminate, reduce, raise or create for blue ocean opportunities.
The document summarizes key concepts from "The Blue Ocean Strategy" book. It discusses how blue ocean strategy involves creating uncontested market space by making competition irrelevant. It outlines value innovation as the cornerstone, which creates value for both buyers and companies. It presents frameworks like the four actions grid to eliminate, reduce, raise or create factors to break value-cost tradeoffs. It also discusses visualizing strategies, sequencing ideas through buyer utility/price/cost/adoption tests, and avoiding imitations through value innovation moves.
Value innovation creates favorable impacts on both cost structure and value proposition to buyers. It reduces costs by eliminating unnecessary industry factors and lifts buyer value by creating new elements the industry has never offered before. Over time, costs are reduced further through scale economies generated by superior value. Red ocean strategy competes in existing market space while blue ocean strategy creates uncontested market space to make competition irrelevant. The six principles of blue ocean strategy are reconstructing market boundaries, focusing on the big picture, reaching beyond existing demand, getting the strategic sequence right, overcoming organizational hurdles, and building execution into strategy.
2011 will bring significant changes to a wide variety of industries. While many organization believe they are innovating for a better tomorrow in reality they are only making modification of today's familiar territory.
Blue Ocean Strategy challenges leaders to work through a meticulous set of frameworks that flesh out opportunities that are not obvious using yesterday's tool kits. Blue Ocean Strategy requires a responsible imagination. That is, the ability to dream and see beyond today while applying analytical tools that assist in risk reduction and genuine breakthrough thinking and valid value innovations.
The document provides an overview of blue ocean strategy, including definitions of red ocean and blue ocean strategies, why companies get trapped in red oceans, the importance of value innovation, how to analyze a value curve using a strategy canvas, the six principles and four-action framework for creating a blue ocean strategy, overcoming organizational hurdles to execution, building a robust business model, and the life cycle of a blue ocean strategy.
Blue Ocean Strategy - Creating Value Innovationsmelanie_ernst
Why still bothering what the competition is doing? Can you really win the battle? Or wouldn’t it be much nicer to get out and create your own market, where YOU are the only supplier. Blue Ocean Strategy leads you to uncontested market space, making the competition irrelevant by creating and capturing new demand, breaking the value-cost-trade off and aligning the whole system of a firm's activities in pursuit of differentiation and low cost.
The document discusses strategies for transforming an industry through value innovation. It outlines strategies such as expanding industry boundaries, focusing on creating new customer value rather than competing on price, and growing demand by attracting new customer segments. Key elements of the strategy include focusing on a few compelling factors valued by customers, having a unique value proposition, and communicating a clear message of the value offered.
Blue Ocean Strategy Corporate Training Programguest53f0585
StrategizeBlue’s Corporate Training Program offers comprehensive training for your executives, senior and middle managers to understand and apply Blue Ocean Strategy to their work problems.
It prepares them to create Blue Oceans of profitable growth for your organization.
Blue Ocean Strategy was developed by W. Chan Kim and Renée Mauborgne. They observed that companies tend to engage in head-to-head competition in search of sustained profitable growth. Yet in today’s overcrowded industries competing head-on results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. Lasting success increasingly comes, not from battling competitors, but from creating blue oceans of untapped new market spaces ripe for growth.
Blue Ocean Strategy challenges everything you thought you knew about strategic success and provides a systematic approach to making the competition irrelevant.
In this presentation, we will introduce the concept of “Blue Ocean Strategy”, to help you understand and gain a strong foothold in online competitive market place.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html
This document summarizes the key concepts from the book "Blue Ocean Strategy" by W. Chan Kim and Renee Mauborgne. The authors propose that companies can create "blue oceans" of uncontested market space by pursuing value innovation that raises buyer value and reduces costs. They outline tools like the strategy canvas and four actions framework to help companies visualize new strategic approaches. The document also discusses how to overcome organizational hurdles to executing blue ocean strategies and the importance of fair process in gaining support for new strategies.
Summary of Blue Ocean Strategy and tools. To be used as a quick reference of the concepts and tools. Not a replacement to reading the book (www.blueoceanstrategy.com)
Blue ocean strategy is a concept developed by W. Chan Kim and Renée Mauborgne that involves creating new market space and breaking away from competition. It is based on a decade of research on over 150 strategic moves spanning 30 industries. The goal is not to outperform competitors but to make them irrelevant by creating new demand in uncontested market space. Key aspects include focus, divergence from competitors, compelling taglines, and tools and frameworks to systematically create blue oceans. Examples include Canon creating the desktop copier market by targeting individual users instead of corporate purchasers.
The document provides a book review of "Blue Ocean Strategy" by W. Chan Kim and Renee Mauborgne. It summarizes the key arguments of the book in 3 points: 1) The book claims traditional competitive strategies do not lead to innovation or new markets. It introduces "value innovation" to create uncontested market spaces. 2) Tools like the strategy canvas are presented to help formulate blue ocean strategies that eliminate or reduce existing factors while creating new ones to attract new demand. 3) The book provides frameworks for formulating and executing blue ocean strategies but its claims are not fully supported and it neglects factors like marketing and business cycles.
Red ocean strategy involves competing in existing market space against competitors, while blue ocean strategy creates new market space without competition. Key tools for blue ocean strategy include the strategy canvas, which visually captures current and future strategic positioning; the 4 Actions framework for reconstructing buyer value; and the ERRC grid for eliminating/reducing and raising/creating factors. Fair process builds execution into strategy through engagement, explanation, and clarity of expectations.
This document discusses Blue Ocean Strategy, which involves creating new market space and demand rather than competing in existing markets. It summarizes key aspects of Blue Ocean Strategy, including value innovation to raise buyer value and reduce costs, the four actions framework to create a new value curve, and the six principles of reducing management, organizational, business model, execution, scale, and search risks. It also outlines the four steps of visualizing blue ocean strategy and the three tiers of potential new customers.
Blue Ocean Strategy (BOS) is a framework for creating new market space and making competition irrelevant. It is based on a decade of research on strategic moves spanning over 100 years. BOS aims to create blue oceans of uncontested market space rather than fighting in existing red oceans. It provides tools like the strategy canvas and four actions framework to help formulate strategies that eliminate, reduce, raise, and create factors compared to industry standards. The six principles of BOS guide successful formulation through reconstructing market boundaries and focusing on the big picture rather than numbers. Executing BOS involves overcoming organizational hurdles and building fair processes and tipping point leadership into the strategy.
The document discusses the concept of blue ocean strategy, which involves creating new market space by changing the boundaries of an existing industry. It outlines key principles such as reconstructing market boundaries, focusing on non-customers, and using a strategy canvas to visualize new opportunities. The strategy aims to make competition irrelevant by creating uncontested market space through eliminating or reducing some industry factors while introducing new ones.
The document discusses key concepts from Blue Ocean Strategy, including:
1. Value innovation is created by favorably affecting both cost structure and value proposition to buyers. Costs are reduced by eliminating competition factors while buyer value is increased by offering new elements.
2. Blue ocean strategy aims to create new market space by breaking the value-cost tradeoff, while red ocean strategy involves competing in existing market space on factors like cost or differentiation.
3. Tools for developing blue ocean strategy include the strategy canvas, four actions framework, buyer utility map, and analyzing the buyer experience cycle. The strategic sequence and evaluating ideas on utility, price, cost and adoption are also discussed.
The document discusses the concept of "Blue Ocean Strategy" which involves creating new market space and making competition irrelevant. It provides strategies for reconstructing market boundaries to create blue oceans, including eliminating factors industries take for granted, reducing other factors below standards, and creating/raising new factors. Blue oceans offer highly profitable growth by expanding existing industry boundaries. The document outlines principles for formulating blue ocean strategies and minimizing risks, and provides examples of companies like Novo Nordisk and Apple that successfully created new market spaces.
Value innovation creates value for both buyers and the company by reducing costs through eliminating unnecessary factors while also increasing buyer value by introducing new elements. It aims to break the trade-off between low costs and differentiation.
Blue ocean strategy seeks to create new market space by making competitors irrelevant and capturing new demand rather than competing head-to-head in existing markets. It breaks the value-cost tradeoff through eliminating, reducing, raising and creating factors compared to industry standards.
The buyer utility map outlines six stages of the buyer experience and six levers companies can use to deliver exceptional utility at each stage from purchase to disposal.
The document discusses key concepts from Blue Ocean Strategy, including:
1. Value innovation is created by favorably affecting both cost structure and value proposition to buyers. Costs are reduced by eliminating competition factors while buyer value is increased by offering new elements.
2. Blue ocean strategy aims to create new market space by breaking the value-cost tradeoff, while red ocean strategy involves competing in existing market space on factors like cost or differentiation.
3. Tools for developing blue ocean strategy include the strategy canvas, four actions framework, buyer utility map, and analyzing the buyer experience cycle. The strategic sequence and evaluating ideas on utility, price, cost and adoption are also discussed.
This document discusses key concepts from blue ocean strategy, including:
- Red oceans represent existing market space where companies compete by taking value from competitors, while blue oceans create uncontested market space with new value.
- Six principles of blue ocean strategy help lower risks in formulation and execution, including focusing on the big picture rather than numbers.
- The strategy canvas tool is used to analyze where competitors invest and what customers receive to find new opportunities.
- Reconstructing market boundaries across the six paths can help conceive new market space beyond existing demand and industry assumptions.
The document summarizes the key concepts from the book Blue Ocean Strategy, which discusses how companies can create new market space and make competition irrelevant. It outlines the difference between red and blue ocean strategies, and tools like the strategy canvas and four action framework. Examples are given of companies like Cirque du Soleil and Southwest Airlines that created blue oceans. Principles for formulating a blue ocean strategy include reconstructing market boundaries and focusing on the big picture rather than numbers. Overcoming organizational hurdles is important for execution.
The document provides an overview of blue ocean strategy, including definitions of red ocean and blue ocean strategies, why companies get trapped in red oceans, the importance of value innovation, how to analyze a value curve using a strategy canvas, the six principles and four-action framework for creating a blue ocean strategy, overcoming organizational hurdles to execution, building a robust business model, and the life cycle of a blue ocean strategy.
Blue Ocean Strategy - Creating Value Innovationsmelanie_ernst
Why still bothering what the competition is doing? Can you really win the battle? Or wouldn’t it be much nicer to get out and create your own market, where YOU are the only supplier. Blue Ocean Strategy leads you to uncontested market space, making the competition irrelevant by creating and capturing new demand, breaking the value-cost-trade off and aligning the whole system of a firm's activities in pursuit of differentiation and low cost.
The document discusses strategies for transforming an industry through value innovation. It outlines strategies such as expanding industry boundaries, focusing on creating new customer value rather than competing on price, and growing demand by attracting new customer segments. Key elements of the strategy include focusing on a few compelling factors valued by customers, having a unique value proposition, and communicating a clear message of the value offered.
Blue Ocean Strategy Corporate Training Programguest53f0585
StrategizeBlue’s Corporate Training Program offers comprehensive training for your executives, senior and middle managers to understand and apply Blue Ocean Strategy to their work problems.
It prepares them to create Blue Oceans of profitable growth for your organization.
Blue Ocean Strategy was developed by W. Chan Kim and Renée Mauborgne. They observed that companies tend to engage in head-to-head competition in search of sustained profitable growth. Yet in today’s overcrowded industries competing head-on results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. Lasting success increasingly comes, not from battling competitors, but from creating blue oceans of untapped new market spaces ripe for growth.
Blue Ocean Strategy challenges everything you thought you knew about strategic success and provides a systematic approach to making the competition irrelevant.
In this presentation, we will introduce the concept of “Blue Ocean Strategy”, to help you understand and gain a strong foothold in online competitive market place.
To know more about Welingkar School’s Distance Learning Program and courses offered, visit:
http://www.welingkaronline.org/distance-learning/online-mba.html
This document summarizes the key concepts from the book "Blue Ocean Strategy" by W. Chan Kim and Renee Mauborgne. The authors propose that companies can create "blue oceans" of uncontested market space by pursuing value innovation that raises buyer value and reduces costs. They outline tools like the strategy canvas and four actions framework to help companies visualize new strategic approaches. The document also discusses how to overcome organizational hurdles to executing blue ocean strategies and the importance of fair process in gaining support for new strategies.
Summary of Blue Ocean Strategy and tools. To be used as a quick reference of the concepts and tools. Not a replacement to reading the book (www.blueoceanstrategy.com)
Blue ocean strategy is a concept developed by W. Chan Kim and Renée Mauborgne that involves creating new market space and breaking away from competition. It is based on a decade of research on over 150 strategic moves spanning 30 industries. The goal is not to outperform competitors but to make them irrelevant by creating new demand in uncontested market space. Key aspects include focus, divergence from competitors, compelling taglines, and tools and frameworks to systematically create blue oceans. Examples include Canon creating the desktop copier market by targeting individual users instead of corporate purchasers.
The document provides a book review of "Blue Ocean Strategy" by W. Chan Kim and Renee Mauborgne. It summarizes the key arguments of the book in 3 points: 1) The book claims traditional competitive strategies do not lead to innovation or new markets. It introduces "value innovation" to create uncontested market spaces. 2) Tools like the strategy canvas are presented to help formulate blue ocean strategies that eliminate or reduce existing factors while creating new ones to attract new demand. 3) The book provides frameworks for formulating and executing blue ocean strategies but its claims are not fully supported and it neglects factors like marketing and business cycles.
Red ocean strategy involves competing in existing market space against competitors, while blue ocean strategy creates new market space without competition. Key tools for blue ocean strategy include the strategy canvas, which visually captures current and future strategic positioning; the 4 Actions framework for reconstructing buyer value; and the ERRC grid for eliminating/reducing and raising/creating factors. Fair process builds execution into strategy through engagement, explanation, and clarity of expectations.
This document discusses Blue Ocean Strategy, which involves creating new market space and demand rather than competing in existing markets. It summarizes key aspects of Blue Ocean Strategy, including value innovation to raise buyer value and reduce costs, the four actions framework to create a new value curve, and the six principles of reducing management, organizational, business model, execution, scale, and search risks. It also outlines the four steps of visualizing blue ocean strategy and the three tiers of potential new customers.
Blue Ocean Strategy (BOS) is a framework for creating new market space and making competition irrelevant. It is based on a decade of research on strategic moves spanning over 100 years. BOS aims to create blue oceans of uncontested market space rather than fighting in existing red oceans. It provides tools like the strategy canvas and four actions framework to help formulate strategies that eliminate, reduce, raise, and create factors compared to industry standards. The six principles of BOS guide successful formulation through reconstructing market boundaries and focusing on the big picture rather than numbers. Executing BOS involves overcoming organizational hurdles and building fair processes and tipping point leadership into the strategy.
The document discusses the concept of blue ocean strategy, which involves creating new market space by changing the boundaries of an existing industry. It outlines key principles such as reconstructing market boundaries, focusing on non-customers, and using a strategy canvas to visualize new opportunities. The strategy aims to make competition irrelevant by creating uncontested market space through eliminating or reducing some industry factors while introducing new ones.
The document discusses key concepts from Blue Ocean Strategy, including:
1. Value innovation is created by favorably affecting both cost structure and value proposition to buyers. Costs are reduced by eliminating competition factors while buyer value is increased by offering new elements.
2. Blue ocean strategy aims to create new market space by breaking the value-cost tradeoff, while red ocean strategy involves competing in existing market space on factors like cost or differentiation.
3. Tools for developing blue ocean strategy include the strategy canvas, four actions framework, buyer utility map, and analyzing the buyer experience cycle. The strategic sequence and evaluating ideas on utility, price, cost and adoption are also discussed.
The document discusses the concept of "Blue Ocean Strategy" which involves creating new market space and making competition irrelevant. It provides strategies for reconstructing market boundaries to create blue oceans, including eliminating factors industries take for granted, reducing other factors below standards, and creating/raising new factors. Blue oceans offer highly profitable growth by expanding existing industry boundaries. The document outlines principles for formulating blue ocean strategies and minimizing risks, and provides examples of companies like Novo Nordisk and Apple that successfully created new market spaces.
Value innovation creates value for both buyers and the company by reducing costs through eliminating unnecessary factors while also increasing buyer value by introducing new elements. It aims to break the trade-off between low costs and differentiation.
Blue ocean strategy seeks to create new market space by making competitors irrelevant and capturing new demand rather than competing head-to-head in existing markets. It breaks the value-cost tradeoff through eliminating, reducing, raising and creating factors compared to industry standards.
The buyer utility map outlines six stages of the buyer experience and six levers companies can use to deliver exceptional utility at each stage from purchase to disposal.
The document discusses key concepts from Blue Ocean Strategy, including:
1. Value innovation is created by favorably affecting both cost structure and value proposition to buyers. Costs are reduced by eliminating competition factors while buyer value is increased by offering new elements.
2. Blue ocean strategy aims to create new market space by breaking the value-cost tradeoff, while red ocean strategy involves competing in existing market space on factors like cost or differentiation.
3. Tools for developing blue ocean strategy include the strategy canvas, four actions framework, buyer utility map, and analyzing the buyer experience cycle. The strategic sequence and evaluating ideas on utility, price, cost and adoption are also discussed.
This document discusses key concepts from blue ocean strategy, including:
- Red oceans represent existing market space where companies compete by taking value from competitors, while blue oceans create uncontested market space with new value.
- Six principles of blue ocean strategy help lower risks in formulation and execution, including focusing on the big picture rather than numbers.
- The strategy canvas tool is used to analyze where competitors invest and what customers receive to find new opportunities.
- Reconstructing market boundaries across the six paths can help conceive new market space beyond existing demand and industry assumptions.
The document summarizes the key concepts from the book Blue Ocean Strategy, which discusses how companies can create new market space and make competition irrelevant. It outlines the difference between red and blue ocean strategies, and tools like the strategy canvas and four action framework. Examples are given of companies like Cirque du Soleil and Southwest Airlines that created blue oceans. Principles for formulating a blue ocean strategy include reconstructing market boundaries and focusing on the big picture rather than numbers. Overcoming organizational hurdles is important for execution.
The document discusses the concept of Blue Ocean Strategy, which involves creating new market space and making competition irrelevant by reconstructing market boundaries to focus on underserved customers. It outlines tools for Blue Ocean Strategy including the strategy canvas and four action framework of eliminate, reduce, raise and create. It also discusses six principles for formulating and executing Blue Ocean Strategy, such as overcoming organizational hurdles and building execution into the strategy.
The document discusses the concept of Blue Ocean Strategy, which involves creating new market space and making competition irrelevant by reconstructing market boundaries to focus on underserved customers. It outlines tools for Blue Ocean Strategy including the strategy canvas and four action framework of eliminate, reduce, raise and create. It also discusses six principles for formulating and executing Blue Ocean Strategy, such as overcoming organizational hurdles and building execution into the strategy.
Blue Ocean Strategy is an approach to strategy formulation and execution that aims to create new market space and make competition irrelevant. It involves reconstructing market boundaries, focusing on the big picture rather than numbers, reaching beyond existing demand, and getting the strategic sequence right. Executing blue ocean strategy requires overcoming organizational hurdles like cognitive biases and resource constraints through techniques like engaging disgruntled customers and redirecting resources from less productive areas.
Blue Ocean Strategy is an approach to strategy formulation and execution that aims to create new market space and make competition irrelevant. It involves reconstructing market boundaries, focusing on the big picture rather than numbers, reaching beyond existing demand, and getting the strategic sequence right. Executing blue ocean strategy requires overcoming organizational hurdles like cognitive biases and resource constraints through techniques like engaging disgruntled customers and redirecting resources from less productive areas.
Blue Ocean Strategy is an approach to strategy formulation and execution that aims to create new market space and make competition irrelevant. It involves reconstructing market boundaries, focusing on the big picture rather than numbers, reaching beyond existing demand, and getting the strategic sequence right. Executing blue ocean strategy requires overcoming organizational hurdles like cognitive biases and resource constraints through techniques like engaging disgruntled customers and redirecting resources from less productive areas.
Blue Ocean Strategy is a framework for creating new market space and making competition irrelevant. It involves reconstructing market boundaries and focusing on factors that can be eliminated, reduced, raised, or created to open up blue oceans of uncontested market space. The strategy canvas tool is used to analyze the current state and develop a new "to be" strategy. Six principles provide guidance on formulating a blue ocean strategy including reconstructing markets, focusing on the big picture, reaching beyond existing demand, and getting the strategic sequence right. Overcoming organizational hurdles and building execution into the strategy are important for successful execution.
The document summarizes key concepts from Blue Ocean Strategy, including:
1. Value innovation focuses on making competitors irrelevant by creating value for buyers and the company, opening new market space.
2. The strategy canvas is used to analyze an industry's factors of competition and a company's offerings relative to competitors.
3. Blue ocean strategy aims to reconstruct industry boundaries and break the value-cost tradeoff to drive differentiation and low costs simultaneously.
The document discusses blue ocean strategy and provides several key concepts:
1. It compares red ocean strategy, which focuses on competition, to blue ocean strategy which creates new market space and makes competition irrelevant.
2. Value innovation, pursuing differentiation and low cost simultaneously to create value for buyers and the company, is the cornerstone of blue ocean strategy.
3. The strategy canvas tool is used to analyze current industry factors and identify which to eliminate, reduce, raise, and create to shift to an uncontested blue ocean.
4. Pioneer-migrator-settler maps are used to plot current and planned business offerings to identify blue ocean strategic moves as pioneers in new markets.
SM Unit 5 - Blue and red Ocean Strategy.pptxHemantPawar71
1. The document discusses key concepts from blue ocean strategy including the strategy canvas, value curve, four actions framework, and business model.
2. It explains the strategy canvas is used to visualize the current competitive landscape by plotting key factors against customer needs. The value curve similarly shows where value is created for customers compared to competitors.
3. The four actions framework poses questions to challenge industry assumptions and find new market spaces through eliminating, reducing, raising, or creating factors.
4. A business model identifies the value proposition, target market, revenue streams, activities in the value chain, and long-term competitive strategy. It is the company's plan for making a profit.
The document discusses the key concepts of blue ocean strategy, which involves creating new market space and making competition irrelevant by focusing on value innovation. It provides an overview of the 6 principles of blue ocean strategy, which are reconstructing market boundaries, focusing on the big picture rather than numbers, reaching beyond existing demand, getting the strategic sequence right, overcoming organizational hurdles, and building execution into strategy. Finally, it discusses various frameworks like the strategy canvas that can be used to analyze a company's strategy and identify opportunities to create new blue oceans.
This document summarizes a webinar about Blue Ocean Strategy presented by the Harvard Business School Club of Washington DC. The webinar discussed how Blue Ocean Strategy allows entrepreneurs to create new market space without competition by modifying their business model, product/service offering, target market, and strategy implementation. Specific tools from Blue Ocean Strategy discussed include the Four Actions Framework, ERRC Grid, Strategy Canvas, and focusing on non-customers to unlock new demand. The presenters aimed to help university startup competition participants apply these Blue Ocean Strategy concepts and tools to their ventures.
The document discusses various frameworks and tools for developing a blue ocean strategy, including:
1. The value innovation framework which focuses on reducing factors industries compete on while raising and creating new elements of buyer value.
2. The strategy canvas tool which maps where a company invests factors relative to competitors and buyer value received.
3. The four actions framework which identifies factors to eliminate, reduce, raise, and create to break the value-cost tradeoff.
4. Various tools to visualize strategy including visualizing current vs. future strategies and identifying non-customers to target for growth.
The document discusses various frameworks and tools for developing a blue ocean strategy, including:
1. The value innovation framework which focuses on reducing factors industries compete on and raising/creating new elements of buyer value.
2. The strategy canvas tool which maps factors industries compete on and the levels of buyer value offered to identify opportunities.
3. The four actions framework which involves eliminating, reducing, raising, and creating factors to break industry trade-offs and create new value.
4. Additional tools like the buyer utility map, price corridor, profit model, and blue ocean idea index help validate blue ocean ideas and ensure commercial viability.
This document discusses the concept of blue ocean strategy, which involves creating new market space rather than competing in existing or "red ocean" markets. It explains that blue oceans are defined by untapped market demand, while red oceans involve competition over existing demand. The document outlines principles for formulating a blue ocean strategy, including reconstructing market boundaries, focusing on the big picture rather than numbers, and getting the strategic sequence right. Tools for blue ocean strategy creation are presented, such as the strategy canvas for mapping the current industry state and a company's strategic moves, and the four actions framework for eliminating, reducing, raising, and creating strategic factors. Characteristics of effective blue ocean strategies and risks to avoid with red ocean thinking are also summarized
DoCoMo I-mode Japan passes the blue ocean idea index test by scoring positively on utility, price, cost and addressing adoption hurdles. In contrast, Philips CD-i and Motorola Iridium scored negatively on most or all factors.
The document discusses the concepts and analytical tools of Blue Ocean Strategy (BOS), which focuses on creating new market space and making competition irrelevant. It covers reconstructing market boundaries, focusing on the big picture rather than existing demand, getting the strategic sequence right, and overcoming organizational hurdles to execution. Tools for formulation include the strategy canvas, four actions framework, and buyer utility map to help visualize new strategies that create blue oceans.
This document outlines a life skills training program module on building self-confidence and self-esteem. The module aims to help participants understand the importance of self-esteem, identify barriers to its development, and apply therapies to increase self-confidence. It discusses how self-image affects one's behavior and provides indicators of positive and negative self-image. The module also identifies underlying factors in developing self-esteem, and presents various activities and therapies to help participants explore their self-image and build a more positive self-concept.
The document provides instructions for an icebreaker activity where students will:
1) Pick an object that represents themselves and explain their choice in a group.
2) Create a hashtag for their group and share it with the class.
3) Have one group member share their deepest thoughts.
It then provides a bingo card for students to sign up under categories that fit their personality to get to know each other better. Finally, it prompts students to think about the legacy and memories they want to leave behind.
Erikson's theory outlines 8 stages of human development, with the 5th stage being identity vs. role confusion occurring during adolescence. During this stage, adolescents face many challenges as they search for themselves and their place in the world. Some of the key challenges include achieving independence from parents while still under their control, developing constructive use of free time, navigating new sexual and peer relationships, making important vocational choices, and developing a sense of personal identity and life goals.
The document discusses stress and its causes. It defines stress as the body's response to demands and pressures. It then lists common stressors like homework, tests, arguments, and lack of sleep. It also describes manifestations of stress like keeping a diary, lack of concentration, excessive sweating, and weight loss. Later, it discusses how mismanaging time can lead to stress and suggests activities like relaxation music and prayer writing to help manage stress.
This document discusses emotional intelligence and managing emotions. It defines emotional intelligence as the ability to understand, control, and express one's emotions. It provides examples of different emotions like afraid, angry, ashamed, and describes activities to help perceive, understand, and manage emotional reactions. The document emphasizes that part of managing emotions is choosing our mood and knowing that moods are within our control to help motivate or concentrate depending on the situation. It concludes with brief bible verses about maturity and confidence that with God's help one can continue growing in emotional intelligence.
The document discusses relationships and maintaining healthy relationships. It provides 15 true/false statements about relationships covering topics like communication, self-love, understanding others, listening, forgiveness, conflict resolution, and spending quality time. Additional paragraphs discuss why relationships are important for health and well-being, some benefits of healthy relationships, and common relationship problems such as infidelity, lack of responsibility, unrealistic expectations, and addictions.
The document provides information on signs of healthy and unhealthy relationships. It lists 17 statements and instructs the reader to mark each with a heart if it is a sign of a healthy relationship and an X if it is a sign of an unhealthy relationship. Some examples of healthy relationship signs include being able to express opinions without fear, making decisions together fairly, and respecting and encouraging each other. Unhealthy relationship signs include feeling isolated from friends/family and being forced to do something unwanted. The document also lists 10 rules for finding and maintaining long-lasting authentic relationships, such as treating each other with kindness and respect, being honest, and taking interest in each other's important things. It encourages connecting with family, practicing gratitude, learning to
The Department of Education (DepEd) and the National Youth Commission (NYC) launched yesterday the nationwide implementation of the Abot-Alam program, which aims to provide various education and employment opportunities for the country's out-of-school youth (OSY).
This document discusses issues with MBA programs and students. It questions whether MBA students lack critical thinking skills and whether schools are producing too many MBA graduates compared to available management positions. It argues that the best educators for business schools are business practitioners who can teach good business practices and moral values. It stresses the importance of developing students' character and spiritual values to help rebuild the country's reputation and economy.
This document discusses employee health and safety. It covers the benefits of a safe and healthy workforce, including higher productivity and quality. It also discusses the consequences of an unsafe work environment, such as injuries, diseases and economic costs. The document provides an overview of occupational safety and health, accident and disease prevention strategies, and the duties and responsibilities of both employers and employees in maintaining a safe work environment.
it describes the bony anatomy including the femoral head , acetabulum, labrum . also discusses the capsule , ligaments . muscle that act on the hip joint and the range of motion are outlined. factors affecting hip joint stability and weight transmission through the joint are summarized.
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
How to Manage Your Lost Opportunities in Odoo 17 CRMCeline George
Odoo 17 CRM allows us to track why we lose sales opportunities with "Lost Reasons." This helps analyze our sales process and identify areas for improvement. Here's how to configure lost reasons in Odoo 17 CRM
How to Build a Module in Odoo 17 Using the Scaffold MethodCeline George
Odoo provides an option for creating a module by using a single line command. By using this command the user can make a whole structure of a module. It is very easy for a beginner to make a module. There is no need to make each file manually. This slide will show how to create a module using the scaffold method.
This presentation was provided by Steph Pollock of The American Psychological Association’s Journals Program, and Damita Snow, of The American Society of Civil Engineers (ASCE), for the initial session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session One: 'Setting Expectations: a DEIA Primer,' was held June 6, 2024.
How to Add Chatter in the odoo 17 ERP ModuleCeline George
In Odoo, the chatter is like a chat tool that helps you work together on records. You can leave notes and track things, making it easier to talk with your team and partners. Inside chatter, all communication history, activity, and changes will be displayed.
A review of the growth of the Israel Genealogy Research Association Database Collection for the last 12 months. Our collection is now passed the 3 million mark and still growing. See which archives have contributed the most. See the different types of records we have, and which years have had records added. You can also see what we have for the future.
Introduction to AI for Nonprofits with Tapp NetworkTechSoup
Dive into the world of AI! Experts Jon Hill and Tareq Monaur will guide you through AI's role in enhancing nonprofit websites and basic marketing strategies, making it easy to understand and apply.
Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
Objective:
Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
3. RReedd vveerrssuuss bblluuee
Compete in existing market
space
Beat the competition
Exploit existing demand
Make the value‐cost trade‐off
Align the whole system of a
company’s activities with its
strategic
choice of differentiation or
low cost
Create uncontested market
space
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 low cost
4. Value Innovation
Value innovation is created in the region where a company’s actions favorably affect both
its cost structure and its value proposition to buyers. Cost savings are made by eliminating
and reducing the factors an industry competes on. Buyer value is lifted by raising and
creating elements the industry has never offered. Over time, costs are reduced further as
scale economies kick in due to the high sales volumes that superior value generates.
Costs
Value
Innovation
Buyer Value
6. Red Ocean Versus Blue Ocean Startegy
In the red ocean, differentiation costs because firms compete with the
same best-practice principle. Here, the strategic choices for firms are to
pursue either differentiation or low cost. In the reconstructionist world,
however, the strategic aim is to create new best-practice rules by breaking
the existing value-cost trade-off and thereby creating blue ocean.
Red Ocean Strategy Blue Ocean Strategy
Compete in existing market space. Create uncontested market space.
Beat the competition. Make the competition irrelevant.
Exploit existing demand. Create and capture new demand.
Make the value-cost trade-off. Break the value-cost trade-off.
Align the whole system of a firm’s
activities with its strategic choice of
differentiation or low cost.
Align the whole system of a firm’s
activities in pursuit of differentiation
and low cost.
7. Red Ocean Versus Blue Ocean Strategy
Red Ocean Strategy Blue Ocean Strategy
8. The Six Principles of Blue Ocean Strategy
This figure highlights the six principles driving the successful formulation
and execution of blue ocean strategy and the risks that these principles
attenuate.
Formulation Principles Risk factor each principle attenuates
Reconstruct market boundaries
Search risk
Focus on the big picture, not the numbers
Planning risk
Reach beyond existing demand
Scale risk
Get the strategic sequence right
Business model risk
Evaluation principles Risk factor each principle attenuates
Overcome key organizational hurdles
Organizational risk
Build execution into strategy
Management risk
9. The Six Principles of Blue Ocean Strategy
Formulation Principles Risk factor each principle attenuates
Evaluation principles Risk factor each principle attenuates
10. Strategy Canvas
The strategy canvas is both a diagnostic and an action framework for building a
compelling blue ocean strategy. It captures the current state of play in the known
market space. This allows you to understand where the competition is currently
investing, the factors the industry currently competes on in products, service, and
delivery, and what customers receive from the existing competitive offerings on the
market. The horizontal axis captures the range of factors the industry competes on
an invests in. The vertical axis captures the offering level that buyers receive across
all these key competing factors. The value curve then provides a graphic depiction
of a company’s relative performance across its industry’s factors of competition.
High
Low
Price Use of
Above-the-line
marketing Aging
enological
terminology
Vineyard prestige
quality
and legacy Wine
complexity
Wine range
12. Four Actions Framework +
Eliminate/Reduce/Raise/Create Grid
The four actions framework offers an
technique that breaks the trade-off between
differentiation and low cost and to create a
new value curve. It answers the four key
questions of what industry takes for granted
and needs to be eliminated; what factors need
to be reduced below industry standards; what
factors need to be raised above industry
standards; and what should be created that
the industry has never offered.
Reduce
Which factors should be
reduced well below
industry standards?
The eliminate-reduce-raise-create grid pushes
companies not only to ask all four questions in
the four actions framework but also to act on all
four to create a new value curve. By driving
companies to fill in the grid with the actions of
eliminating, reducing, raising, and creating, the
grid provides four immediate benefits: it pushes
them to simultaneously pursue differentiation and
low costs; identifies companies who are only
raising and creating thereby raising costs; makes
it easier for managers to understand and comply;
and it drives companies to scrutinize every factor
the industry competes on.
Eliminate
Enological terminology and
distinctions
Aging qualities
Above-the-line marketing
Raise
Price versus budget wines
Retail Store involvement
Reduce
Wine complexity
Wine range
Vineyard prestige
Create
Easy drinking
Ease of selection
Fun and adventure
A
New
Value
Curve
Eliminate Create
Raise
Which factors should be
created that the industry
has never offered?
Which factors should
be raised well above
the industry’s standard?
Which of the factors
that the industry takes
for granted should be
eliminated?
13. Four Actions Framework +
Eliminate/Reduce/Raise/Create Grid
Four Actions Framework
Reduce
Eliminate Create
A New
Value
Curve
Raise Eliminate Raise
Reduce Create
The Eliminate-Reduce-Raise-Create
Grid
14. Four Steps of Visualizing Strategy
The four steps of visualizing strategy builds on the six paths of creating blue
oceans and involves a lot of visual stimulation in order to unlock people’s
creativity. The four steps include visual awakening, visual exploration, visual
strategy fair, and visual communication.
1. Visual
Awakening
2. Visual
Exploration
3. Visual Strategy
Fair
4. Visual
Communicatio
n
•Compare your
business with your
competitors’ by
drawing your “as is”
strategy canvas.
•See where your
strategy needs to
change
•Go into the field to
explore the six paths to
creating blue oceans.
•Observe the distinctive
advantages of
alternative products and
services.
•See which factors you
should eliminate,
create, or change.
•Draw your “to be” strategy
canvas based on insights
from field observations.
•Get feedback on
alternative strategy
canvases from customers,
competitors’ customers,
and noncustomers.
•Use feedback to build the
best “to be” future strategy.
•Distribute your before-and-
after strategic profiles
on one page for easy
comparison.
•Support only those
projects and operational
moves that allow your
company to close the
gaps to actualize the new
strategy.
15. Four Steps of Visualizing Strategy
1. Visual
Awakening
2. Visual
Exploration
3. Visual
Strategy Fair
4. Visual
Communication
16. Pioneer, Settler, Migrator Map
A corporate management team pursuing profitable growth can plot the
company’s current and planned portfolios on a pioneer-migrator-settler
(PMS) map. This strategy can help a company determine which businesses
experience the highest and lowest growth and cash flow. These are
classified accordingly with the highest growth potential being pioneers, then
to migrators, then to the lowest rung, settlers.
Pioneers
Migrators
Settlers
Today Tomorrow
18. Three Tiers of Noncustomers
There are three tiers of noncustomers that can be transformed into
customers. They differ in their relative distance from your market. The
first tier of customers minimally buy an industry’s offering out of necessity.
The second tier of noncustomers refuse to use your industries offerings.
The third tier are noncustomers who have never thought of your market’s
offerings as an option.
Your
Market
First
Tier
Second
Tier
Third
Tier
20. Sequence of Blue Ocean Strategy
An important part of blue ocean strategy is to
“get the strategic sequence right.” This
sequence fleshes out and validates blue
ocean ideas to ensure their commercial
viability. This can then reduce business
model risk. In this model, potential blue
ocean ideas must pass through a sequence
of buyer utility, price, cost, and adoption. At
each step there are only two options: a “yes”
answer, in which case the idea may pass to
the next step, or “no”. If an idea receives a
no at any point, the company can either park
the idea or rethink it until you get a yes.
Buyer utility
Is there exceptional buyer utility in your
business idea?
Price
Is your price easily accessible to the
mass of buyers?
Cost
Can you attain your cost target to profit
at your strategic price?
Adoption
Yes
What are the adoption hurdles in
actualizing your business idea? Are you
addressing them up front?
A Commercially
Viable Blue
Ocean Idea
No-- Rethink
Yes
Yes
Yes
No-- Rethink
No-- Rethink
No-- Rethink
21. Sequence of Blue Ocean Strategy
Buyer utility
Price
Cost
Adoption
A Commercially
Viable Blue
Ocean Idea
No-- Rethink
Yes
Yes
Yes
Yes
No-- Rethink
No-- Rethink
No-- Rethink
22. Buyer Utility Map
The buyer utility map helps managers look at this issue from the right
perspective. It outlines all the levers companies can pull to deliver exceptional
utility to buyers as well as the various experiences buyers can have with a
product or service.
1.
Purchase
2.
Delivery
3.
Use
4.
Supplements
5.
Maintenance
6.
Disposal
Customer
Productivity
Simplicity
Convenience
Risk
Fun and
Image
Environmental
friendliness
The Six Stages of the Buyer Experience Cycle
The Six Utility Levers
23. Buyer Utility Map
1.
Purchase
2.
Delivery
3.
Use
4.
Supplements
5.
Maintenance
6.
Disposal
Customer
Productivity
Simplicity
Convenience
Risk
Fun and
Image
Environmental
friendliness
The Six Stages of the Buyer Experience Cycle
The Six Utility Levers
24. Buyer Experience Cycle
A buyer’s experience can usually be broken into a cycle of six stages,
running more or less sequentially from purchase to disposal. Each
stage encompasses a wide variety of specific experiences. At each
stage, managers can ask a set of questions to gauge the quality of
buyer’s experience.
Purchase Delivery Use Supplements Maintenance Disposal
How long does it
take to find the
product you
need?
Is the place of
purchase
attractive and
accessible?
How secure is
the transaction
environment?
How rapidly can
you make a
purchase?
How long does
it take to get
the product
delivered?
How difficult is
it to unpack
and install the
new product?
Do buyers
have to
arrange
delivery
themselves? If
yes, how costly
and difficult is
this?
Does the product
require training or
expert assistance?
Is the product easy to
store when not in
use?
How effective are the
product’s features
and functions?
Does the product or
service deliver far
more power or
options than required
by the average user?
Is in overcharged with
bells and whistles?
Do you need other
products and
services to make
this product work?
If so, how costly are
they?
How much time do
they take?
How easy are they
to obtain?
Does the product
require external
maintenance?
How easy is it to
maintain and
upgrade the
product?
How costly is
maintenance?
Does use of the
product create
waste items?
How easy is it to
dispose of the
product?
Are there legal
or
environmental
issues in
disposing of the
product safely?
How costly is
disposal?
26. Uncovering Blocks to Buyer Utility
Uncovering blocks to buyer utility can identify the most compelling
hot spots to unlock exceptional utility. By locating your proposed
offering on the thirty-six space of the buyer utility map, you can
clearly see how, and whether the new idea not only creates a
different utility proposition from existing offerings but also
removes the biggest blocks to utility that stand in the way of
converting noncustomers into customers.
Purchase Delivery Use Supplements Maintenance Disposal
Customer Productivity: In which stage are the biggest blocks to customer productivity?
Simplicity: In which stages are the biggest blocks to simplicity?
Convenience: In which stage are the biggest blocks to convenience?
Risk: In which stage are the biggest blocks to reducing risks?
Fun and Image: In which stage are the biggest blocks to fun and image?
Environmental
Friendliness:
In which stage are the biggest blocks to environmental friendliness?
27. Uncovering Blocks to Buyer Utility
Purchase Delivery Use Supplements Maintenance Disposal
Customer Productivity:
Simplicity:
Convenience:
Risk:
Fun and Image:
Environmental
Friendliness:
28. Price Corridor of the Mass
This tool helps managers find the right price for an irresistible offer, which, by
the way, isn’t necessarily the lower price. The tool involves two distinct buy
interrelated steps. The first step involves identifying the price corridor of the
mass which deals with customer price sensitivity and pricing strategies of
products offered outside the group of traditional competitors. The second step
deals with specifying a level within the price corridor which factors in legal
protection and exclusive assets.
Step 1: Identify the price corridor
of the mass.
Step 2: Specify a price level within the
price corridor.
Three alternative product/service types:
Same
form
Different form,
same function
Different form and
function, same
objective
Price Corridor
of the Mass
High degree of legal and resource
protection
Difficult to imitate
Some degree of legal and resource
protection
Low degree of legal and resource
protection
Easy to imitate
Upper-level pricing
Mid-level pricing
Lower-level pricing
29. Price Corridor of the Mass
Step 1: Identify the price
corridor of the mass.
Step 2: Specify a price level
within the price corridor.
Three alternative product/service types:
Same
form
Different form,
same function
Different form
and function,
same objective
Price
Corridor of
the Mass
High degree of legal and
resource protection
Difficult to imitate
Some degree of legal and
resource protection
Low degree of legal and
resource protection
Easy to imitate
Upper-level pricing
Mid-level pricing
Lower-level pricing
30. Profit Model of Blue Ocean Strategy
The profit model of blue ocean strategy shows how value
innovation typically maximizes profit by using the three levers of
strategic price, target cost, and pricing innovation.
The Strategic Price
The Target Profit
The Target Cost
Streamlining and Cost
Innovations Partnering
Pricing Innovation
32. Blue Ocean Idea Index
The blue ocean idea index is a simple but robust test
demonstrating how the sequence of utility, price, cost, and
adoption form an integral whole to ensure commercial success
through blue ocean strategy.
Utility Is there exceptional utility? Are there
compelling reasons to buy your offering?
Price Is your price easily accessible to the
mass of buyers?
Cost Does your cost structure meet the target
cost?
Adoption Have you addressed adoption hurdles up
front?
Philips
CD-i
Motorola
Iridium
DoCoMo
I-mode
Japan
- -
-
-
-
-
-
+
+
+
+/- +
33. Blue Ocean Idea Index
Utility Is there exceptional utility? Are there
compelling reasons to buy your offering?
Price Is your price easily accessible to the
mass of buyers?
Cost Does your cost structure meet the target
cost?
Adoption Have you addressed adoption hurdles up
front?