9. Here are a few examples of blue ocean strategic moves from a variety of different
industries and sectors. Select from the icons below to learn more.
CANON
Canonâs strategic move, which created the personal desktop copier industry, is a classic
example of blue ocean strategy. Traditional copy machine manufacturers targeted office
purchasing managers, who wanted machines that were large, durable, fast, and required
minimal maintenance.
Defying the industry logic, the Japanese company Canon created a blue ocean of new
market space by shifting the target customer of the copier industry from corporate
purchasers to users. With their small, easy-to-use desktop copiers and printers Canon
created new market space by focusing on the key competitive factors that the mass of
noncustomers â the secretaries that used copiers â wanted.
By questioning conventional definitions of who can and should be the target buyer,
companies can often see fundamentally new ways to unlock value. Path three of blue ocean
strategyâs six paths framework pushes companies to look across the chain of buyers in their
industry. By shifting focus to a previously overlooked set of buyers, companies can unlock
new value and create uncontested market space.
10. RALPH LAUREN
Ralph Lauren, the U.S. designer, created a blue ocean of âhigh fashion with no fashionâ by
understanding the factors that determine buyersâ decisions to trade up or down from one
strategic group to another.
In creating Polo, Ralph Lauren combined the most attractive features of two strategic groups
in fashion: haute couture and classical lines. Its designer name, the elegance of its stores,
and the luxury of its materials capture what most customers value in haute couture. At the
same time, its updated classical look and price capture the best of the classical lines such as
Brooks Brothers and Burberry. By combining the decisive factors of both groups and
eliminating or reducing everything else, Polo Ralph Lauren not only captured share from
both strategic groups, but also drew many new customers into the market.
Polo Ralph Laurenâs blue ocean strategic move illustrates the potential to create new market
space by looking across strategic groups in an industry, path two in blue ocean strategyâs six
paths framework.
PHILIPS
Philipsâ blue ocean strategic move in the teakettle industry is an example of looking across
complementary product and service offerings, path four in the six paths framework.
Despite its importance to British culture, the British teakettle industry had flat sales and
shrinking profit margins until Philips Electronics, the Dutch consumer electronics company,
came along with a teakettle that turned the red ocean blue.
By thinking in terms of complementary products and services, Philips saw that the biggest
issue the British had in brewing tea was not in the kettle itself but in the complementary
product of water, which had to be boiled in the kettle. The issue was the limescale found in
tap water. The limescale accumulated in kettles as the water was boiled, and later found its
way into the freshly brewed tea. The phlegmatic British typically took a teaspoon and went
fishing to capture the off-putting limescale before drinking home-brewed tea. To the kettle
industry, the water issue was not its problem. It was the problem of another industryâthe
public water supply.
17. SERVING UP QUALITY SERVICE
The New Straits Times, Malaysia.
May 18, 2015
In the past, the quality of service provided at government agencies to the general
public was notoriously poor. However an initiative under National Blue Ocean
Strategy, â1Malaysia Customer Service of Civil Serviceâ (1Serve) has focused on
transforming the quality of service and increasing customer satisfaction. Malaysians
can visit 1Serve counters to access multiple government agencies. The civil servants
who staff these counters have been given more training, and improvements have
been made to amenities to make the experience of visiting 1Serve counters more
pleasant. The implementation of this initiative was possible by strategic collaboration
among a number of different government ministries and agencies.
BLUE OCEAN WAY TO RESOLVING WELFARE WOES
Daily Express, Malaysia.
March 5, 2015
Government agencies need to enhance cooperation with other sectors to tackle
welfare issues through the implementation of the National Blue Ocean Strategy
(NBOS), according to the Community Development and Consumer Affairs Minister.
Datuk Jainab Ahmad Ayid said that the efficiency of all parties in responding to
recent floods in the Terengganu region showed that NBOS was a successful and
effective approach.