This document outlines the key steps in developing a Blue Ocean Strategy, which aims to create new market space and make competition irrelevant. It describes mapping out buyer pain points, identifying three tiers of non-customers, and using frameworks like the Six Paths and Eliminate-Reduce-Raise-Create grid to help reconstruct industry boundaries. The overall goal is to gain insights across different industries, buyer groups, trends, and services to identify new strategic options beyond existing competition.

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Blue Ocean Workbook

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What is Blue Ocean Strategy ?
Blue Ocean Strategy is a method to develop a market for a product/service where there is
no competition or very less competition. This strategy revolves around searching for a
market gap in which very few firms operate and where there is no pricing pressure.
The strategy aims to capture new demand and to make competition irrelevant by
introducing a product/service with superior features. It helps the company in making huge
profits as the product can be priced a little steep because of its unique features.

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The core steps for developing a Blue Ocean Strategy.
1. Imagine Where You Could Be.
a. Buyer Utility Map.
b. Three Tiers of Noncustomers.
2. Find How You Get There.
a. Six Paths Framework.
b. Four Actions Framework.

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BUYER UTILITY MAP
The Buyer Utility Map outlines the full range of experiences buyers have in using an
industry’s offering and is used to identify pain points faced by buyers. Across the horizontal
column, it maps out the 6 stages of the buyer experience & on the vertical column are the
utilities the buyer would be looking at each stage.
Mapping the pain points: In each relevant grid, space add a pain point using numbers (1, 2
3 . . ) in the following details sheet, add the details of the pain point.

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BUYER UTILITY MAP
Six stages of the buyer experience cycle
Purchase Delivery Use Supplements Maintenance Disposal
Productivity 1. 2.
Simplicity
Convenience
Risk
Reduction
Fun and
Image
Eco-
Friendliness
BUYERUTILITYLEVERS

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BUYER UTILITY MAP - Pain point details
1. Front desk : Long time taken to check in.
2. Presence of local restaurants & other conveniences close to the hotel.

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THREE TIERS OF NONCUSTOMERS
The key focus of the Blue Ocean Strategy method is to tap markets which are not responsive
or unexplored, this process help define 3 levels of non-customers, they are
Level 1: Soon-to-be or first tier non-customers who are dissatisfied with the existing
industry.
Level 2: Refusing or second tier non-customers, who refuse the industry as a whole.
Level 3: Unexplored or third tier non-customers, who are overlooked by the industry.
Additional this process helps find commonalities across the 3 levels of non-customer.
In the following 3 pages list out the buyer groups for each level of non-customer, why are
they in the level and what is an approximate number of such non-customers.

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THREE TIERS OF NONCUSTOMERS - Soon to be
Buyer Group Why here How Many
- Luxury Travels - Prefer a 5 star hotel as they enjoy the
luxury services.

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THREE TIERS OF NONCUSTOMERS - Refusing
Buyer Group Why here How Many
- Frequent Travelers - Dislike the hassles of hotel check in &
check out & add on services cost.

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THREE TIERS OF NONCUSTOMERS - Unexplored
Buyer Group Why here How Many
- Backpackers - Due to medium to high cost of hotels
prefer to use hostels.

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SIX PATHS FRAMEWORK
The six paths framework is a systematic approach to break away from conventional thinking
by looking across alternative industries, strategic groups, buyer groups, complementary
product and service offerings, the functional-emotional orientation of an industry, and even
across time.
This process will enable you to gain insights into how to reconstruct conventional boundaries
to open new demand.
The following 6 pages layout the 6 paths in this framework and the key question for you to
work out your paths.

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SIX PATHS FRAMEWORK
● Looking Across Alternative Industries - What are the alternative industries to your focal
industry?
○ Our Focal Industry :
■ Hotels
■
○ Alternative Industry 1 :
■ Hostels provide a cheaper alternative.
■
○ Alternative Industry 2 :
■ Airbnb provides more personal & inclusive experience.
■

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SIX PATHS FRAMEWORK
● Looking Across Strategic Groups - What are the strategic groups in your industry?
○ Your Strategic Group
■ Semi-Luxury hotels
■
○ Higher Strategic Group
■ Luxury Hotels
■
○ Lower Strategic Group
■ Business Hotels
■

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SIX PATHS FRAMEWORK
● Looking Across the Chain of Buyers - What is the chain of buyers in your Industry?
○ User
■ Business Travelers
■
○ Purchaser
■ Companies
■
○ Influencer
■ Travel Bloggers
■

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SIX PATHS FRAMEWORK
● Looking Across Complementary Products & Services - What is the context in which your
product or service is used?
○ Before
■ Planning a trip
■
○ During
■ A trip
■
○ After
■ Finding limited stay options
■

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SIX PATHS FRAMEWORK
● Looking Across Functional vs. Emotional Orientation - Does your industry compete on
functionality or emotional appeal?
○ Functional Appeal
■ Room size & facilities
■
○ Emotional Appeal
■ Food & entertainment experince.

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SIX PATHS FRAMEWORK
● Looking Across Time - What trends have a high probability of impacting your industry,
are irreversible, and are evolving in a clear trajectory?
○ Trend 1
■ Capsule hotels
■
○ Trend 2
■ Time based booking
■
○ Trend 3
■ Aggregator models (OYO)

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ELIMINATE-REDUCE-RAISE-CREATE GRID
The Eliminate-Raise-Reduce-Create Grid is based on the Four Actions Framework. It allows
you to translate the insights and observations gained from the Six Paths Framework and
field exploration into concrete and actionable blue ocean strategic options.
It is built on four key questions from the Four Actions Framework:
● Which factors that the industry has long competed on should be ELIMINATED;
● Which factors should be REDUCED WELL BELOW the industry's standard;
● Which factors should be RAISED WELL ABOVE the industry standard;
● Which factors should be CREATED that the industry never offered.
Based on the insight derived from the previous steps please map out the actions required to
develop your new strategy in the below page.

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ELIMINATE-REDUCE-RAISE-CREATE GRID
ELIMINATE REDUCE
Front Desk & Concierge Sleeping Environment
RAISE CREATE GRID
Room Types Kiosks for self check-in

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Summary
- Strategy is a dynamic process.
- The 3 laws of Competition
- First Law : When competition copies a new profitable product or service that you
have launched it shows you have identified the right market gap.
- Second Law : Competition will launch new profitable products or services which
you have not identified, hence giving you an opportunity to explore new profit
lines.
- Third Law : Thanks to the first 2 laws competition will keep on your toes and
prevent complacency.

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Thank You