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.

1. Blue Ocean StrategySummarized by Vanessa YangAug 9, 2010

2. About the AuthorsW. Chan Kim is The Boston Consulting Group Bruce D. Henderson Chair Professor of Strategy and International Management at INSEAD. Renee Mauborgneis the INSEAD Distinguished Fellow and a professor of strategy and management at INSEAD in Fontainebleau, France, and Fellow of the World Economic Forum.

3. How to survive in the bloody “red ocean” of rivals fighting over a shrinking profit pool?In today’s head-to-head competition……And overcrowded industries…

4. Creating “blue oceans” of uncontested market space ripe for growth.

5. Creating Blue Oceans

6. Value Innovation: The Cornerstone of Blue Ocean StrategyCostsValue InnovationBuyer Value

7. Red Ocean Versus Blue Ocean Strategy

8. The Six Principles of Blue Ocean Strategy

9. Analytical Tools and Frameworks

10. The Strategy CanvasHighLowWine rangeAbove-the-line marketingVineyard prestige and legacyPriceUse of enological terminologyAging qualityWine complexity

11. The Four Actions FrameworkReduceWhich factors should be reduced well below the industry’s standard? EliminateCreateA New Value CurveWhich of the factors that the industry takes for granted should be eliminated? Which factors should be created that the industry has never offered?RaiseWhich factors should be raised well above the industry’s standard?

12. The Eliminate-Reduce-Raise-Create Grid:The Case of [yellow tail]

13. Three Characteristics of a Good StrategyFocusDivergenceCompelling Tagline3 Characteristics of a good strategy

14. Reading the Value Curves

15. Reconstruct Market BoundariesFormulatingExecuting

16. Six Paths to Create Blue OceanPath 6Look Across TimePath 5Look Across Functional or Emotional Appeal to BuyersPath 4Look Across Complementary Product and Service OfferingsPath 3Look Across the Chain of BuyersPath 2Look Across Strategic Groups within IndustriesPath 1Look Across Alternative Industries

17. From Head-to-Head Competition to Blue Ocean Creation

18. Focus on the Big Picture,Not the NumbersFormulatingExecuting

19. The Four Steps of Visualizing StrategyVisual AwakeningVisual ExplorationVisual Strategy FairVisual CommunicationsCompare your business with your competitors’ by drawing your “as is” strategy canvas.

20. See where your strategy needs to change

21. Go into the field to explore the six paths to creating blue oceans.

22. Observe the distinctive advantages of alternative products and services.

23. See which factors you should eliminate, create, or change.

24. Draw your “to be” strategy canvas based on insights from field observations.

25. Get feedback on alternative strategy canvases from customers, competitors’ customers, and noncustomers.

26. Use feedback to build the best “to be” future strategy.

27. Distribute your before-and-after strategic profiles on one page for easy comparison.

28. Support only those projects and operational moves that allow your company to close the gaps to actualize the new strategy.The Pioneer-Migrator-Setting (PMS) MapPioneersMigratorsSettlersTodayTomorrow

29. Reach Beyond Existing DemandFormulatingExecuting

30. The Three Tiers of NoncustomersThird TierSecond TierFirst TierYour Market

31. Noncustomers1stTier2rdTier3rdTier“soon-to-be” noncustomers“refusing” noncustomers“unexplored” noncustomers

32. Get the Strategic Sequence RightFormulatingExecuting

33. The Sequence of Blue Ocean StrategyNo – RethinkYesNo – RethinkYesNo – RethinkYesA Commercially Viable Blue Ocean IdeaYes

34. Testing for Exceptional Utility 1- The Buyer Utility MapThe Six Stages of the Buyer Experience CycleThe Six Utility Levers

35. Testing for Exceptional Utility 2- The Buyer Experience CyclePurchaseHow 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?DeliveryHow 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?UseDoes 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?SupplementsDo 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?MaintenanceDoes the product require external maintenance?How easy is it to maintain and upgrade the product?How costly is maintenance?DisposalDoes 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?

36. Testing for Exceptional Utility 3- Uncovering the Blocks to Buyer Utility

37. Strategic Pricing – the Price Corridor of the MassStep 1: Identify the price corridor of the mass.Step 2: Specify a price level within the price corridor.Three alternative product/service types:Different form and function, same objectiveSame formDifferent form, same functionUpper-level pricingPrice Corridor of the MassMid-level pricingLower-level pricing

38. Target Costing – the Profit ModelThe Strategic PriceThe Target ProfitThe Target CostStreamlining and Cost InnovationsPartneringPricing Innovation

39. Adoption

40. Blue Ocean Idea (BOI) Index

41. Overcome Key Organizational HurdlesFormulatingExecuting

42. Four Organizational Hurdles to Strategy Execution

43. Challenging Conventional WisdomConventional Wisdom Versus Tipping Point LeadershipConventional WisdomMass of EmployeesCompanyTipping Point LeadershipExtremesExtremesCompany