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Blue Ocean Strategy
         &
  Business model
    vernieuwing




                      Yousri Mandour
Op het snijvlak van…




       Analyse         Creatie
Opwarmer

 Wie heeft het boek gelezen?
 Bent u actief in een rode oceaan?
 Jaws of Blue Lagoon?
 Als je mag kiezen: differentiatie
 of cost leadership?
Kerngedachte Blue Ocean Strategy
     Door waarde-
      innovatie te
 realiseren, evolueren
   van een bloedige
    rode oceaan…



             naar nieuwe onontgonnen
               marktgebieden: blauwe
                            oceanen!
Nieuwe vorm van strategievorming
Nieuw recept
Einde van Porter?
Hoe zit het met Ansoff?
Hoe de nieuwe markt aanboren?

Doorbreken van 2 conventionele denkkaders:

   Focus op niet-klanten in plaats van
   bestaande klanten
   Zoek naar overeenkomsten in plaats van
   verschillen tussen klanten
Focus op 3 soorten niet-klanten
                         ‘soon-to-be’
                         noncustomers
                        ‘refusing’
                        noncustomers
                        ‘unexplored’
                        noncustomers
Red Ocean Strategy                 Blue Ocean Strategy

Compete in existing market space   Create uncontested market space


      Beat the competition         Make the competition irrelevant


   Differentiation or low cost       Differentiation and low cost


     Competitive Advantage                Value Innovation


  Segment existing customers            Attract non-customers


    Exploit existing demand        Create and capture new demand
Steps in Blue Ocean Strategy




    Analysis          Creative         Adapt         Checklist
starting situation    process:      proposition:   Blue Ocean:

Strategy canvas      6 innovation     4actions      Strategy
     (as-is)             paths      framework        canvas
                                                     (to-be)
Strategy canvas Southwest airlines




         What are difficulties when
        creating a strategy canvas?
Steps in Blue Ocean Strategy




    Analysis          Creative         Adapt         Checklist
starting situation    process:      proposition:   Blue Ocean:

Strategy canvas      6 innovation     4actions      Strategy
     (as-is)             paths      framework        canvas
                                                     (to-be)
6 innovatiepaden
Herdefinieer kopersgroep

  Buyer, user, influencer
  Traditional customer group
  Example: Novo Nordisk
  • Insulin producer
  • Doctor vs. patient
Kijk over marktsegmenten heen
Kijk breder in de waardeketen
Schuldgevoel
          Afspraak                  Verdoofde mond
               makenKwaliteit       3 uur niet eten
          Parkeren      assistent   kostenverwerking
                    wachten

     Voor behandeling                   Na behandeling




       Kiezen                           Dossieroverdracht?



   Voor relatie                                  Na relatie
Steps in Blue Ocean Strategy




    Analysis          Creative         Adapt         Checklist
starting situation    process:      proposition:   Blue Ocean:

Strategy canvas      6 innovation     4actions      Strategy
     (as-is)             paths      framework        canvas
                                                     (to-be)
Nieuw recept
4-actions framework
                                 Reduce                   Pushing for a
                          Which factors should be         quantum leap in
                          reduced well below the          buyer value
                          industry’s standard?


        Eliminate                                        Create
     Which of the
                                 A New              Which factors
     factors that the            Value              should be created
     industry takes for          Curve              that the industry
     granted should be                              has never offered?
     eliminated?

                                  Raise
Pushing for a sharp       Which factors should be
drop in the               raised well above the
industry’s cost           industry’s standard?
structure
Eliminate                Raise
                Star performers          Unique venue
                Animal shows
                Aisle concession sales
                Multiple show arenas
                Reduce                   Create
                Fun and humor            Theme
                Thrill and danger        Refined environment
                                         Multiple productions
                                         Artistic music and dance


©   ICSB Marketing en Strategie
Steps in Blue Ocean Strategy




    Analysis          Creative         Adapt         Checklist
starting situation    process:      proposition:   Blue Ocean:

Strategy canvas      6 innovation     4actions      Strategy
     (as-is)             paths      framework        canvas
                                                     (to-be)
Strategy canvas of [yellow tail]
Lakmoes-test van uw BOS strategie

  Value curve has focus

  Value curve diverges
  from the other players

  Clear strategic profile,
  compelling tagline:
  “The speed of a plane at the price of a car”
Get the Strategic Sequence right

                     Buyer utility

              Is there exceptional buyer
             utility in your business idea?
                                                No  Rethink
                  YES
                         Price
          Is your price easily accessible to
                the mass of buyers?
                                                No  Rethink
                  YES
                        Cost
           Can you attain your cost target to
             profit at your strategic price?
                                                No  Rethink
                  YES
                      Adoption
           What are the adoption hurdles in
           actualizing your business idea?
            Are you addressing them up          No  Rethink
                        front?

                  YES
   A commercially viable Blue Ocean Strategy
Mutual funds supermarket SNS Fundcoach
Global search for asset
management funds
Circle of world leader fund managers
Free mini-seminars
Eliminate                 Raise
In-house inferior funds   Education on investing and
                          stock trading in mini-
Costs of buying and       seminars
selling funds
                          Extensive research on
                          private investment behaviour

Reduce                    Create
Only mutual funds, no     Funds of exclusive asset
individual stocks         management houses
Time span buying and
                          Largest assortment of
selling
                          mutual funds in NL
Blue Ocean Strategy – executive summary

  “Nieuwe” manier van strategie bedrijven
  Alle oude scholen:
   • Gevecht om taartpunt
   • Gevecht om taartgroei
   • Blue ocean: eigen unieke taart bakken
  Nieuw aanbod voor niet klanten
  Meerwaarde voor nieuwe klanten én bedrijf:
  differentiatie én kostenleiderschap
  Aan de hand van modellen, processen, spelregels
Blue Ocean Strategy – waar gaat dat over?


    Blue Ocean Strategy denken gaat over het definiëren
    van een waarde-innovatie in nieuwe markten voor nieuwe
    klanten. Een stimulerende nieuwe wereld van alternatief
    strategie denken. Maar ook moeilijk en risicovol.
    En het biedt geen antwoord voor het gevecht in de huidige
    business. Terwijl (in tijden van crisis) juist daar alle zorgen
    en aandacht liggen.

        Hoe kunnen de slimme inzichten van de Blue Ocean
       Strategy denkwereld, helpen om opnieuw een slag te
          winnen in het gevecht om de bestaande markt?
Vision & Mission            Main goal & Willingness


Internal & External Analysis
                                        Strategy Canvas
SWOT- and confrontation matrix


           Issues                     6 innovation paths


     Creative solutions               Alternative Canvas
                                                Choose
           Choose                (3 characteristics, 4 actions => customer)


                                          Business Case
       Business Case
                                               strategic rank


          Execute                              Execute
Creating a Strategy Canvas for
McDonald’s
“Strategy Canvas” as a start

  The Strategy Canvas is the cornerstone for
  Blue Ocean Strategy:
   • Provides insight in the need for change
   • Sharpens the key elements of the new strategy
  Your assignment: Create an (as-is) Strategy
  Canvas for McDonald’s
Strategy Canvas assignment

1. Formulate field of competition – 3 to 4 competitors
   / alternatives
2. Formulate competitive factors from the customers’
   point of view
3. Score each player on the defined competitive
   factors (based on case information and own
   estimation)
4. Write down hurdles that you encounter during the
   process of making the strategy canvas!
5. Each team prepares a presentation of max 10
   minutes for tomorrow morning
Searching for blue oceans
Assignment

  Searching for blue oceans for McDonald’s
  Reconstruct market boundaries via 4 of the 6
  paths
  Foundation of the ‘to-be’ Strategy Canvas
6 conventional boundaries of competition
1. Look across alternative industries

  Substitute versus alternative
  Which customers looks beyond the border?
   • Key factors
   • Art of elimination
  Example: NetJets
   • Business class versus Companyjet
   • Focus on costs and demand
2. Look across the chain of buyers

  Buyer, user, influencer
  Traditional customer group
  Example: Novo Nordisk
   • Insulin producer
   • Doctor vs. patient
3. Look across complementary
product and service offerings

  Disclose added value of product context
   • What happens before, after and during the use
     of your service?
   • Imperfections during the total product experience
  Example:
   • Cinema  a night out
   • Pain point: What to do with the kids?
   • Additional service: day nursery
Going to the dentist
Feeling
guilty  Making                                Numb mouth
        appointment                 Waiting   Unable to eat properly
        Parking                               Payment


  Before treatment                                 After treatment




> Choosing                                    > Dossier transfer



 Before relationship                          After relationship
    © ICSB Marketing en Strategie
4. Look across time (external trends)

   Relevant trends
   McDonald’s:
    • Growing
      awareness for
      healthy nutrition &
      living.
    • Increasing number
      of elderly people
      in USA / Europe
Assignment in 4 teams

Team 1                     Team 2
  Alternative industries     Chain of buyers
Team 3                     Team 4
  Complementary              Time (external trends)
  product and service
  offerings


        Explore possible paths and
          develop ideas for blue oceans
Contact

ICSB Marketing en Strategie

Barbizonlaan 76
2908 ME Capelle a/d IJssel

T:    010 452 86 02
I:    www.icsb.nl
E:    yousri.mandour@icsb.nl

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Blue ocean strategy

  • 1. Blue Ocean Strategy & Business model vernieuwing Yousri Mandour
  • 2. Op het snijvlak van… Analyse Creatie
  • 3. Opwarmer Wie heeft het boek gelezen? Bent u actief in een rode oceaan? Jaws of Blue Lagoon? Als je mag kiezen: differentiatie of cost leadership?
  • 4.
  • 5.
  • 6. Kerngedachte Blue Ocean Strategy Door waarde- innovatie te realiseren, evolueren van een bloedige rode oceaan… naar nieuwe onontgonnen marktgebieden: blauwe oceanen!
  • 7. Nieuwe vorm van strategievorming
  • 10. Hoe zit het met Ansoff?
  • 11. Hoe de nieuwe markt aanboren? Doorbreken van 2 conventionele denkkaders: Focus op niet-klanten in plaats van bestaande klanten Zoek naar overeenkomsten in plaats van verschillen tussen klanten
  • 12. Focus op 3 soorten niet-klanten ‘soon-to-be’ noncustomers ‘refusing’ noncustomers ‘unexplored’ noncustomers
  • 13. Red Ocean Strategy Blue Ocean Strategy Compete in existing market space Create uncontested market space Beat the competition Make the competition irrelevant Differentiation or low cost Differentiation and low cost Competitive Advantage Value Innovation Segment existing customers Attract non-customers Exploit existing demand Create and capture new demand
  • 14. Steps in Blue Ocean Strategy Analysis Creative Adapt Checklist starting situation process: proposition: Blue Ocean: Strategy canvas 6 innovation 4actions Strategy (as-is) paths framework canvas (to-be)
  • 15. Strategy canvas Southwest airlines What are difficulties when creating a strategy canvas?
  • 16. Steps in Blue Ocean Strategy Analysis Creative Adapt Checklist starting situation process: proposition: Blue Ocean: Strategy canvas 6 innovation 4actions Strategy (as-is) paths framework canvas (to-be)
  • 18. Herdefinieer kopersgroep Buyer, user, influencer Traditional customer group Example: Novo Nordisk • Insulin producer • Doctor vs. patient
  • 20. Kijk breder in de waardeketen Schuldgevoel Afspraak Verdoofde mond makenKwaliteit 3 uur niet eten Parkeren assistent kostenverwerking wachten Voor behandeling Na behandeling Kiezen Dossieroverdracht? Voor relatie Na relatie
  • 21. Steps in Blue Ocean Strategy Analysis Creative Adapt Checklist starting situation process: proposition: Blue Ocean: Strategy canvas 6 innovation 4actions Strategy (as-is) paths framework canvas (to-be)
  • 23. 4-actions framework Reduce Pushing for a Which factors should be quantum leap in reduced well below the buyer value industry’s standard? Eliminate Create Which of the A New Which factors factors that the Value should be created industry takes for Curve that the industry granted should be has never offered? eliminated? Raise Pushing for a sharp Which factors should be drop in the raised well above the industry’s cost industry’s standard? structure
  • 24. Eliminate Raise Star performers Unique venue Animal shows Aisle concession sales Multiple show arenas Reduce Create Fun and humor Theme Thrill and danger Refined environment Multiple productions Artistic music and dance © ICSB Marketing en Strategie
  • 25. Steps in Blue Ocean Strategy Analysis Creative Adapt Checklist starting situation process: proposition: Blue Ocean: Strategy canvas 6 innovation 4actions Strategy (as-is) paths framework canvas (to-be)
  • 26. Strategy canvas of [yellow tail]
  • 27. Lakmoes-test van uw BOS strategie Value curve has focus Value curve diverges from the other players Clear strategic profile, compelling tagline: “The speed of a plane at the price of a car”
  • 28. Get the Strategic Sequence right Buyer utility Is there exceptional buyer utility in your business idea? No  Rethink YES Price Is your price easily accessible to the mass of buyers? No  Rethink YES Cost Can you attain your cost target to profit at your strategic price? No  Rethink YES Adoption What are the adoption hurdles in actualizing your business idea? Are you addressing them up No  Rethink front? YES A commercially viable Blue Ocean Strategy
  • 29. Mutual funds supermarket SNS Fundcoach
  • 30. Global search for asset management funds
  • 31. Circle of world leader fund managers
  • 32.
  • 34. Eliminate Raise In-house inferior funds Education on investing and stock trading in mini- Costs of buying and seminars selling funds Extensive research on private investment behaviour Reduce Create Only mutual funds, no Funds of exclusive asset individual stocks management houses Time span buying and Largest assortment of selling mutual funds in NL
  • 35. Blue Ocean Strategy – executive summary “Nieuwe” manier van strategie bedrijven Alle oude scholen: • Gevecht om taartpunt • Gevecht om taartgroei • Blue ocean: eigen unieke taart bakken Nieuw aanbod voor niet klanten Meerwaarde voor nieuwe klanten én bedrijf: differentiatie én kostenleiderschap Aan de hand van modellen, processen, spelregels
  • 36. Blue Ocean Strategy – waar gaat dat over? Blue Ocean Strategy denken gaat over het definiëren van een waarde-innovatie in nieuwe markten voor nieuwe klanten. Een stimulerende nieuwe wereld van alternatief strategie denken. Maar ook moeilijk en risicovol. En het biedt geen antwoord voor het gevecht in de huidige business. Terwijl (in tijden van crisis) juist daar alle zorgen en aandacht liggen. Hoe kunnen de slimme inzichten van de Blue Ocean Strategy denkwereld, helpen om opnieuw een slag te winnen in het gevecht om de bestaande markt?
  • 37. Vision & Mission Main goal & Willingness Internal & External Analysis Strategy Canvas SWOT- and confrontation matrix Issues 6 innovation paths Creative solutions Alternative Canvas Choose Choose (3 characteristics, 4 actions => customer) Business Case Business Case strategic rank Execute Execute
  • 38.
  • 39. Creating a Strategy Canvas for McDonald’s
  • 40. “Strategy Canvas” as a start The Strategy Canvas is the cornerstone for Blue Ocean Strategy: • Provides insight in the need for change • Sharpens the key elements of the new strategy Your assignment: Create an (as-is) Strategy Canvas for McDonald’s
  • 41. Strategy Canvas assignment 1. Formulate field of competition – 3 to 4 competitors / alternatives 2. Formulate competitive factors from the customers’ point of view 3. Score each player on the defined competitive factors (based on case information and own estimation) 4. Write down hurdles that you encounter during the process of making the strategy canvas! 5. Each team prepares a presentation of max 10 minutes for tomorrow morning
  • 43. Assignment Searching for blue oceans for McDonald’s Reconstruct market boundaries via 4 of the 6 paths Foundation of the ‘to-be’ Strategy Canvas
  • 44. 6 conventional boundaries of competition
  • 45. 1. Look across alternative industries Substitute versus alternative Which customers looks beyond the border? • Key factors • Art of elimination Example: NetJets • Business class versus Companyjet • Focus on costs and demand
  • 46. 2. Look across the chain of buyers Buyer, user, influencer Traditional customer group Example: Novo Nordisk • Insulin producer • Doctor vs. patient
  • 47. 3. Look across complementary product and service offerings Disclose added value of product context • What happens before, after and during the use of your service? • Imperfections during the total product experience Example: • Cinema  a night out • Pain point: What to do with the kids? • Additional service: day nursery
  • 48. Going to the dentist Feeling guilty Making Numb mouth appointment Waiting Unable to eat properly Parking Payment Before treatment After treatment > Choosing > Dossier transfer Before relationship After relationship © ICSB Marketing en Strategie
  • 49. 4. Look across time (external trends) Relevant trends McDonald’s: • Growing awareness for healthy nutrition & living. • Increasing number of elderly people in USA / Europe
  • 50. Assignment in 4 teams Team 1 Team 2 Alternative industries Chain of buyers Team 3 Team 4 Complementary Time (external trends) product and service offerings Explore possible paths and develop ideas for blue oceans
  • 51. Contact ICSB Marketing en Strategie Barbizonlaan 76 2908 ME Capelle a/d IJssel T: 010 452 86 02 I: www.icsb.nl E: yousri.mandour@icsb.nl