The presentation uses the case study of iCanPilot (www.icanpilot.com) to present the practical application of the concepts described in "Blue Ocean Strategy" by INSEAD Professors Kim & Mauborgne.
The document discusses the concept of Blue Ocean Strategy, which involves creating new market space and demand rather than competing in existing markets. It provides examples of companies that have successfully implemented blue ocean strategies, such as Southwest Airlines, Cirque du Soleil, and Nintendo. Southwest Airlines analyzed alternative industries and created new benefits for non-airline customers. Cirque du Soleil eliminated costs from traditional circuses to target new adult customers. Nintendo created new benefits and reduced costs with the Wii to appeal to mass audiences beyond traditional gamers.
Blue Ocean Strategy outlines how companies can create new market space, or "blue oceans", by focusing on value innovation rather than competing head-on in existing markets or "red oceans". To create a blue ocean, companies should reconstruct market boundaries by eliminating or reducing some factors and introducing new ones. They should also look beyond existing customers to non-customers and focus on commonalities rather than differences. Combining exceptional value, strategic pricing and low costs allows companies to attract large new groups of customers and make imitation difficult for competitors.
Win without fighting, create uncontested market space, create new demand, make competition irrelevant, align the whole system of firm's activities in pursuit of differentiation and low cost, four principles of blue ocean strategy, value innovation and comparison with red ocean strategy
The document discusses the expanded edition of Blue Ocean Strategy by W. Chan Kim and Renée Mauborgne. The expanded edition addresses questions that organizations have faced in implementing Blue Ocean Strategy, such as aligning activities around the strategy and avoiding "red ocean traps" when pursuing a blue ocean strategy. It adds new chapters, case studies, and examples to help organizations overcome challenges in creating new market space. The expanded edition builds on the success of the original book, which has sold over 3.5 million copies worldwide and introduced the concept of "blue ocean" strategy into business practice.
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.
The document discusses the concept of Blue Ocean Strategy, which involves creating new market space and demand rather than competing in existing markets. It provides examples of companies that have successfully implemented blue ocean strategies, such as Southwest Airlines, Cirque du Soleil, and Nintendo. Southwest Airlines analyzed alternative industries and created new benefits for non-airline customers. Cirque du Soleil eliminated costs from traditional circuses to target new adult customers. Nintendo created new benefits and reduced costs with the Wii to appeal to mass audiences beyond traditional gamers.
Blue Ocean Strategy outlines how companies can create new market space, or "blue oceans", by focusing on value innovation rather than competing head-on in existing markets or "red oceans". To create a blue ocean, companies should reconstruct market boundaries by eliminating or reducing some factors and introducing new ones. They should also look beyond existing customers to non-customers and focus on commonalities rather than differences. Combining exceptional value, strategic pricing and low costs allows companies to attract large new groups of customers and make imitation difficult for competitors.
Win without fighting, create uncontested market space, create new demand, make competition irrelevant, align the whole system of firm's activities in pursuit of differentiation and low cost, four principles of blue ocean strategy, value innovation and comparison with red ocean strategy
The document discusses the expanded edition of Blue Ocean Strategy by W. Chan Kim and Renée Mauborgne. The expanded edition addresses questions that organizations have faced in implementing Blue Ocean Strategy, such as aligning activities around the strategy and avoiding "red ocean traps" when pursuing a blue ocean strategy. It adds new chapters, case studies, and examples to help organizations overcome challenges in creating new market space. The expanded edition builds on the success of the original book, which has sold over 3.5 million copies worldwide and introduced the concept of "blue ocean" strategy into business practice.
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.
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.
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.
This document provides an introduction to Blue Ocean Strategy, which involves creating new market space and making competition irrelevant through strategic innovation. It outlines key concepts such as red oceans representing crowded markets and blue oceans representing new market space. The six principles of Blue Ocean Strategy are described, which involve reconstructing industry 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. The document also briefly discusses the related concept of Green Ocean Strategy and concludes that while red ocean strategies are necessary, blue ocean strategies are needed to sustain high performance through new opportunities.
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.
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.
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.
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
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.
This document discusses red ocean traps that can prevent companies from pursuing market-creating strategies. The four main traps are: 1) Seeing customer-oriented approaches as market-creating when the focus should be on non-customers, 2) Treating market-creation as niche strategies when they are often broader, 3) Confusing technology innovation with market-creation when new markets are created through simplicity, and 4) Equating market-creation with low-cost strategies alone when new markets can be high-end. To avoid these traps, managers must surface and challenge the mental models that anchor them in existing competitive spaces rather than exploring new blue oceans.
Blue Ocean Strategy by W. Chan Kim and Renee MauborgneSameer Mathur
This document provides an overview and summary of the book "Blue Ocean Strategy" by W. Chan Kim and Renee Mauborgne. It discusses key concepts from the book, including how blue ocean strategy focuses on creating new market space rather than competing in existing "red oceans." The document outlines six paths or frameworks for reconstructing market boundaries and creating blue oceans, including looking across alternative industries, strategic groups, chains of buyers, complementary products/services, functional/emotional appeal, and time. Examples are provided for how companies like Cirque du Soleil, Casella Wines, and others successfully applied blue ocean strategy principles to create new demand and make competition irrelevant.
The basic premise of the authors Kim and Mauborgne is that many companies that win in the marketplace do so in ways that make their competition irrelevant.
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.
Blue ocean strategy involves creating new market space and demand rather than competing in existing markets. It focuses on value innovation to make competition irrelevant by creating products that buyers value. Analytical tools like the strategy canvas and frameworks like the four actions and six paths help identify new blue oceans. Creating blue oceans can lead to significantly higher profits and growth compared to competing only in red oceans.
In their classic book, Blue Ocean Strategy, W. Chan Kim & Renée Mauborgne coined the terms ’red ocean’ and ‘blue ocean’ to describe the market universe. This slide deck provides their revolutionary framework for creating and executing a Blue Ocean Strategy for your business.
Blue Ocean Strategy helps organizations develop uncontested market space and make the competition irrelevant. The attached presentation summarizes the concept and utilizes laptops as an example to create a new strategy.
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.
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.
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.
This document provides an introduction to Blue Ocean Strategy, which involves creating new market space and making competition irrelevant through strategic innovation. It outlines key concepts such as red oceans representing crowded markets and blue oceans representing new market space. The six principles of Blue Ocean Strategy are described, which involve reconstructing industry 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. The document also briefly discusses the related concept of Green Ocean Strategy and concludes that while red ocean strategies are necessary, blue ocean strategies are needed to sustain high performance through new opportunities.
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.
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.
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.
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
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.
This document discusses red ocean traps that can prevent companies from pursuing market-creating strategies. The four main traps are: 1) Seeing customer-oriented approaches as market-creating when the focus should be on non-customers, 2) Treating market-creation as niche strategies when they are often broader, 3) Confusing technology innovation with market-creation when new markets are created through simplicity, and 4) Equating market-creation with low-cost strategies alone when new markets can be high-end. To avoid these traps, managers must surface and challenge the mental models that anchor them in existing competitive spaces rather than exploring new blue oceans.
Blue Ocean Strategy by W. Chan Kim and Renee MauborgneSameer Mathur
This document provides an overview and summary of the book "Blue Ocean Strategy" by W. Chan Kim and Renee Mauborgne. It discusses key concepts from the book, including how blue ocean strategy focuses on creating new market space rather than competing in existing "red oceans." The document outlines six paths or frameworks for reconstructing market boundaries and creating blue oceans, including looking across alternative industries, strategic groups, chains of buyers, complementary products/services, functional/emotional appeal, and time. Examples are provided for how companies like Cirque du Soleil, Casella Wines, and others successfully applied blue ocean strategy principles to create new demand and make competition irrelevant.
The basic premise of the authors Kim and Mauborgne is that many companies that win in the marketplace do so in ways that make their competition irrelevant.
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.
Blue ocean strategy involves creating new market space and demand rather than competing in existing markets. It focuses on value innovation to make competition irrelevant by creating products that buyers value. Analytical tools like the strategy canvas and frameworks like the four actions and six paths help identify new blue oceans. Creating blue oceans can lead to significantly higher profits and growth compared to competing only in red oceans.
In their classic book, Blue Ocean Strategy, W. Chan Kim & Renée Mauborgne coined the terms ’red ocean’ and ‘blue ocean’ to describe the market universe. This slide deck provides their revolutionary framework for creating and executing a Blue Ocean Strategy for your business.
Blue Ocean Strategy helps organizations develop uncontested market space and make the competition irrelevant. The attached presentation summarizes the concept and utilizes laptops as an example to create a new strategy.
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 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 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 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.
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.
1) The document discusses brand and product portfolio management. It covers developing brand portfolios aligned with customer segments and objectives, evaluating brand portfolios, and managing product lifecycles.
2) It also discusses building trust with customers in the insurance industry by being transparent and treating customers fairly. Examples of practices that can create or reduce trust are provided.
3) Customer value management is discussed, including understanding the most profitable customer segments through data analytics, segmentation modeling, and customer lifetime value modeling to optimize marketing activities and target customers.
Het Blue ocean strategy denken klinkt fantastisch. Ontsnappen aan het voortdurende concurrentiële gevecht door nieuwe marktruimte te creëren. Niet langer aan de spelregels morrelen, maar zelf een nieuw spel beginnen. De praktijk wijst keer op keer uit dat juist de organisaties die het lef hebben zich te onttrekken aan de dagelijkse concurrentiestrijd en in plaats daarvan te sturen op optimale waardecreatie voor hun klanten, in staat zijn te groeien waar anderen stil blijven staan. De laatste jaren zien we dat de nieuwe marktleiders vaak ontstaan door een wezenlijke vernieuwing van het gangbare business model in hun sector door te voeren. In deze masterclass wordt de kern van het blauwe oceaan denken en business model innovatie voor je samengevat met een focus op de toepassing van dit gedachtengoed in de praktijk.
This document discusses blue ocean strategy, which involves creating new market space and making competition irrelevant by focusing on value innovation. It outlines key aspects of blue ocean strategy such as reconstructing market boundaries, using analytical tools like the strategy canvas and four actions framework, and formulating a blue ocean strategy that addresses adoption hurdles and achieves exceptional buyer utility at an accessible price point with attainable costs. It also discusses executing blue ocean strategy through tipping point leadership and overcoming hurdles to strategy execution like fair process.
This document discusses the concept of Blue Ocean Strategy as presented in the book of the same name by W. Chan Kim and Renee Mauborgne. It provides examples of companies like Cirque du Soleil and Netflix that created new "blue oceans" of uncontested market space rather than competing in existing "red oceans." The document outlines tools and frameworks for formulating a blue ocean strategy, including reconstructing market boundaries, focusing on the big picture, reaching beyond existing demand, getting the strategic sequence right, overcoming organizational hurdles, building execution into strategy, and ensuring sustainability.
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.
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.
Blue Ocean Strategy was developed by W. Chan Kim and Renée Mauborgne to help companies move from competitive "red oceans" to new "blue oceans" of uncontested market space. They observed that companies tend to compete head-to-head resulting in shrinking profits, and that lasting success comes from creating new markets rather than battling competitors. Blue Ocean Strategy provides systematic tools and frameworks to help companies reconstruct industry boundaries to create blue oceans of opportunity and make competition irrelevant.
The Business Strategy that Makes Competition Irrelevant, Blue Ocean StrategyFlevy.com Best Practices
Original article from the Flevy business blog can be found here:
http://flevy.com/blog/the-business-strategy-that-makes-competition-irrelevant-blue-ocean-strategy/
Blue Ocean Strategy is growth strategy framework focused on the idea of creating an uncontested market space–i.e. a “blue ocean.” This framework is very innovative, as its principles challenge the conventional business strategy principles of fighting competitors head-on. The Blue Ocean Strategy framework evolved from a framework called Value Innovation developed by Gemini Consulting (now Capgemini Consulting) in the late 90s.
Blue Ocean vs. Red Ocean. What’s the meaning behind the name?
In red oceans, our efforts are focused on the conventional logic that we must outpace the competition with a better solution to a given problem. Blue ocean strategy invites us to redefine the problem itself. It does so by breaking the value-cost trade-off in view of creating new uncontested market places. Places where no one has been and where we would be the one defining the rules!
The Analytical Tools & Frameworks
The strategy canvas is both the start and the end point of a Blue Ocean Strategy formulation. An initial value curve depicts where the industry competes on and invests in. It is then transformed via the eliminate-reduce-raise-create actions framework. The resulting value curve shows a focused effort that diverges from existing market offerings and can be easily translated into a compelling tagline.
Core Underlying Principles
Venturing beyond an existing industry space implies a series of risks. The blue ocean strategy approach to strategy is based on six principles that cater for the major risks of a new market creation project: search risk, planning risk, scale risk, business model risk, organizational risk and management risk. Together, they define the underlying philosophy of blue oceans.
Flevy is the marketplace for premium business documents, such as business frameworks , PowerPoint templates , financial models , and more . We have two beautifully crafted presentations focused on explaining the Blue Ocean Strategy framework here on Flevy:
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 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.
Similar to Blue Ocean Strategy - example of ICanPilot (20)
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How to Start Up a Company: A Step-by-Step Guide Starting a company is an exciting adventure that combines creativity, strategy, and hard work. It can seem overwhelming at first, but with the right guidance, anyone can transform a great idea into a successful business. Let's dive into how to start up a company, from the initial spark of an idea to securing funding and launching your startup.
Introduction
Have you ever dreamed of turning your innovative idea into a thriving business? Starting a company involves numerous steps and decisions, but don't worry—we're here to help. Whether you're exploring how to start a startup company or wondering how to start up a small business, this guide will walk you through the process, step by step.
8. NEW BUSINESS MODEL What is bigger: the risk of not changing or the fear of change?
9. BLUE OCEAN STRATEGY BUSINESS MODEL INNOVATION DISRUPTIVE INNOVATION DESIGN THINKING LEAD USER RESEARCH CROWD SOURCING OUTCOME DRIVEN INNOVATION We are all looking for proven recipies & tools that we could apply with confidence
10. BLUE OCEAN STRATEGY is the simultaneous pursuit of high value and low cost to create new market space. Source: Kim & Mauborgne
11. 4 8 Visual Exploration - Reconstruct Market Boundaries 1 2 3 5 6 Visual Strategy Fair Create Series of “To Be” Strategy Canvases Mapping the Business Portfolio Visualize Current Strategy Understand Customer Experience Identify Non-customer Commonalities Four Actions Framework Six Paths Analysis 7 “As Is” Strategy Canvas Buyer Experience Cycle 3 Tiers of Non-customers “To Be” Strategy Canvas PMS Map 4 Actions 9 Visual Awakening Module 1 Visual Exploration Module II Milestone / Calibration Module III Visual Strategy Fair Module IV Final “To Be” Strategy Canvas “To Be” Strategy Canvas Field Work Visual Exploration Field Work Visual Awakening Field Work Visual strategy Creation Source: Kim & Mauborgne Visual Awakening Visual Exploration Visual Communication
12. Tagline: The Speed of a planeattheprice & flexibilityof a car HIGH Southwest Average Airlines Car Transport LOW Price Frequent point-topoint departures Meals Seating class choices Lounges Hub connectivity Friendly service Speed Lesson #1. Visualize your current strategy on an AS IS Strategy Canvas
14. Blue Ocean Strategy Create uncontested “market space” Ignore & make the competition irrelevant Create & capture new demand from a new customer base Red Ocean Strategy Compete in existing market space Benchmark to beat the competition Exploit existing demand with the existing customer base Source: Kim & Mauborgne, Blue Ocean Strategy
15. How do we reconstruct the market boundaries? Source: Nintendo Wii Lesson #3. Look at the non-customers of your industry
16. How do we reconstruct the market boundaries? Alternatives & substitutes Segments Chain of buyers Complementary products Emotional vs functional orientation Trends Lesson #4. Use six paths framework to reconstruct market boundaries
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