1. Visit
evisors.com
to browse all mentors who
can help you with:
• Informational Interviews
• Resumes & Cover Letters
• Mock Interviews
…and more!
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2. Creating New Innovations Using
Knowledge Brokering
featuring:
Nate Alder
Founder of
Hosted by:
Caitlin Quan
Evisors Marketing & Operations Associate
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3. Agenda
1. About Nate: www.NateAlder.com
2. Klymit
3. Knowledge Brokering
4. Medici Effect
5. Keys to success
6. Q&A
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5. • World’s lightest: 9.1 ounces
• World’s most compact
• 2 – 4 breaths to inflate
• Argon and/or mouth inflatable
• Adjustable pressure comfort
• Body mapping
• Warm Loft Pockets (50 below)
• Breathable
• Comfortable
Klymit Inertia X-Frame
(Award winning camping pad)
Body Mapping
pressure points
Shoulders
Head
Hips
Legs and
feet
Size of soda can
when rolled up
Vision – Product – Business Model – Opportunity
Patents Pending
6. Klymit Inertia X-Frame
(Award winning camping pad)
• Burst pressure 12+ PSI (strongest on market)
• Most durable fabrics (see link above)
• Includes stuff sack and patch kit ($45 value)
• 45% less than competition, and 20% better margins
• Great for:
• Hiking (Light and Fast is the trend/industry direction)
• Camping
• Airport flight delays/cancelations
• Carry everywhere, bed in your back pocket
• Winner of multiple awards
Vision – Product – Business Model – Opportunity
Patents Pending
7. Awards and Features
• Gear Junkie Award
• ISPO Award
• Popular Science Magazine
• Eastmans
• Outside Magazine
• Utah Outside
• Men’s Journal
• Backpacker Magazine
• About.com
• California Kayaker Magazine
• Go Outside Brazil Magazine
• SNEWS
• Inventor Spot
• SLC Tribune
• Powder Magazine
• Invented In Utah Award
• Much much more
Vision – Product – Business Model – Opportunity
Klymit Media Exposure
8. Proven at “. . .
Subfreezing
temperatures on 14,259
Ft. Longs Peak and the
gas-filled VEST reflected
body heat like no other
JACKET we’ve ever
tried, not even the
fluffiest 900-fill down.”
Backpacker Magazine
Oct 2009 Fall Gear Guide
Vision – Product – Business Model – Opportunity
Third Party
Validation
Vision – Product – Business Model – Opportunity
14. Keys to Success
• Failure is an opportunity to win if you learn and don’t
quit.
• Contacts and Mentors are most important part of
competitions.
• Put all the money into the company and nothing for your
pockets.
• Get the right people on the bus, wrong off.
• Put all your skin in the game where everything is done,
prototypes work, so all you need is cash to launch, not
invent.
• Knowledge Brokering
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15. Knowledge Brokering
The best innovations aren’t lone geniuses.
They’re people who can take an idea that’s
obvious in one context and apply it in not-so-
obvious ways to a different context. The best
companies have learned to systemize that
process
Hargadon & Sutton: Harvard Business Review
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16. Knowledge Brokering
Question:
How do you keep gas in a jacket while
maintaining breathability?
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18. Knowledge Brokering
Question:
How do you supply portable argon, krypton,
or xenon gas for refills when they are only
available in large tanks?
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26. Knowledge Brokering
“To Invent you need a good imagination and a
pile of junk.”
“First, study the present construction. Second,
ask for all past experiences . . . Study and
read everything you can on the subject.”
Thomas Edison
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27. Creative Innovation
“Budget forces creativity”
“Revolutionary innovation is born from tight
budgets and limited resources”
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28. Medici Effect
• Medici Family in Italy
• Intersections in:
• Music (Shakira), Food (renound chefs)
• Da Vinci Effect
• Architect in Africa
• Stan Lapidus non MD improved colon cancer
detection
• Reverse rules: restaurants / Inertia X Frame
• ADD (harness it)
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29. Medici Effect
• Evolutionary ideas vs. Revolutionary ideas
• Expected incremental computer improvements
vs. creating new categories like iPods, iPads
and Cell phones
• Listening to consumers vs. telling consumers
like Nike and Apple
• Diverging from established pathways
• Idea reversal (restaurant)
• Detecting colon cancer
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30. Source of Good Ideas/Solutions
• Old ideas = Raw materials for new ideas
• IDEO
• Other products at the store
• Cross pollinate
• Events
• World around us
• Living life
• Nature
• History
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31. Recognizing Good Ideas
“You know you have a good idea when your
customer thinks you’re crazy"
Tony Post: CEO Vibram Five Finger Shoes
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32. Threats
Threats to innovation as an entrepreneur:
Only Yourself!!!
Satellite Rocket Booster Example
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33. Blue Ocean Strategy
Creating new market space or "blue ocean" rather
than competing in an existing industry /
category, similar to Revolutionary innovation
Red Ocean: Existing industries, similar
products/service with similar
features/service/arguments, mature crowded
market, limited prospects/growth, cutthroat
creating bloody waters
Blue Ocean: New market/category, new needs
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34. Avoiding Red Oceans
Difficult Red Oceans
• Software (millions of iPhone apps)
• Websites (MySpace vs. Facebook, Amazon)
• Brands (clothing, wine)
• Trends (Lance Armstrong bracelets, Beanie Babies)
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35. Klymit Avoiding Red Oceans
1. Variable Insulation
2. Thin
3. Weightless
4. Warm When Wet
5. Pack Out Proof
6. Bunch Proof
7. Boyant
8. Warmer
9. Eco-Friendly
Klymit Competitors
Klymit Blue Ocean
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36. Converting A Red Oceans To Blue Oceans
• Don’t debate, innovate!
• Tell how your different, not better
• Hybrid capable to enhance competitors
• Adaptable add-on (zip in liners)
• Redefine the product and need, choose
features others cannot talk about. All
conditions gear
• Alternative revenue sources like HP printers
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37. Production Techniques for Small Companies
• Identify OEMs of parts that have many years
in business
• Leverage partnerships, don’t start by trying
to build everything from scratch such as our
kanister and other suppliers that have 20 –
150 years of experience.
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38. Networking
• Klymit Network Chain to Success
• Sincerity
• Attend as many business and industry
events as possible.
• Say no to “Nay Sayers”
• Finding the right contact
You cannot do it alone, no one is a self made man!
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39. Book your session with Nate at
www.evisors.com/expert/expert/2061
Advisor for:
1. Creating and Managing New Ventures
2. Innovation
3. Product Development
4. Sourcing
5. Marketing
6. Branding
7. Sales
Nate Alder
Founder of
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41. Questions & Answers
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Question 1:
What are the main characteristics for a manager in
charge of an innovation project?
42. Questions & Answers
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Question 2:
What is the main source of inspiration for
innovative thinking?
43. Questions & Answers
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Question 3:
Should you focus more on the idea or the financing
of a startup?
44. Questions & Answers
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Question 4:
Does an entrepreneur have to be an innovator or
do they have to be around innovators?
45. Questions & Answers
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Question 5:
How long does it take to bring a new technology
from an idea to the marketplace? What are your
strategies for speeding up the process?
46. Questions & Answers
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Question 6:
In a competitive environment, how can you
differentiate yourself and attract business?
47. Questions & Answers
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Question 7:
Which basic guidelines should all entrepreneurs be
aware of?
48. Get the latest updates on upcoming
webinars by following us:
Register for live webinars and view all our recordings at:
www.evisors.com/webinars
facebook.com/Evisors
twitter.com/Evisors
pinterest.com/Evisors
linkedin.com/company/Evisors
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Editor's Notes
Easily fill the pad with 2 – 3 breaths, top of with hand pump and Klymitizer. Not only is this the lightest, most durable, most compact pad on the market, it is also the most versatile that can be used in the warmest of conditions, and also the coldest thanks to its breathable loft pockets unique to our patent. http://www.youtube.com/watch?v=txdjpbs9YWQ
With it’s better design, weight, features, all accessories included, etc. and a 20% better margins offered to retailers than existing pad companies, Klymit is positioned to become a key player in the camping pad industry rapidly and dominate the light weight market.
Klymit won an innovation award at the ORSM for our InertiaXFrame along with a lot of other press coverage. Klymit received an innovation award at the Outdoor Retailer Summer Show for the InertiaXFrame. To be 1 of 12 products to receive a “Best In Show: Outdoor Retailer Award 2010” is high praise for a little company like Klymit. http://gearjunkie.com/outdoor-retailer-innovation-awards-summer-2010ISPO tradeshow in Europe, 4th largest tradeshow in the world, and Klymit won the “Best of What’s New” Award for the Inertia X Frame http://en.ispo-brandnew.com/Klymit.html Outdoor Retailer 2010 Summer Market: Klymit, Vargo Outdoors ...By Jared HargraveThe Outdoor Retailer 2010 Summer Market is filled with new innovations in the outdoor gear industry, and it's exciting to see what ...- http://www.utahoutside.com/Inventorspot.com http://inventorspot.com/articles/argon_clothes_skeleton_sleeping_pads_klymit_delivers_more_innova OR BLOG - Klymit does it again with...Salt Lake TribuneUsing MediaOne of Utah's online subscription services is the easiest and most effective way of managing your subscriptions to The Salt Lake Tribune. ...scary – new Klymit air mat « besthike.com blogBy rickmcAt this year's Outdoor Retailer, one of the most hyped products around was Klymit's Inertia X Frame camping pad. As you can see in the picture, the pad features a unique design with a variety of cutouts aimed at cutting weight and size. ...OR: The Latest in UltralightBackpacker MagazineRemember Klymit? The company that makes the inflatable vest? You pump it full of argon, an inert but insulative gas; we reviewed it in our 2009 Fall Gear ...Adventure World Mag. - Outdoor Retailer Gear Preview (Part 1) | Adventure World MagazineGearJunkie.com - http://gearjunkie.com/outdoor-retailer-innovation-awards-summer-2010Salt Lake Trib Lifestyle - http://www.sltrib.com/sltrib/outdoors/50065726-117/pad-klymit-frame-inertia.html.cspHikingcampingworld.com - http://www.hiking-camping-world.com/hiking-camping-gear-blog/2625/klymit-inertia-x-frame/Uncooped.com - http://uncooped.com/chris-weiss/posts/1320-klymit-claims-world-s-lightest-camping-padUtahoutside.com - http://www.utahoutside.com/2010/08/outdoor-retailer-2010-summer-market-klymit-vargo-outdoors-waterbox-and-polarmax/Trailspace.com - http://www.trailspace.com/blog/2010/08/05/outdoor-retailer-klymit.htmlBackpacker mag. - http://www.backpacker.com/klymit_argon_jacket/blogs/daily_dirt/1181Feedthehabit.com - http://www.feedthehabit.com/outdoors/outdoor-retailer-klymit-gas-based-insluation/Trailspace.com Video - http://www.youtube.com/watch?v=iXQJLaU_thw&feature=relatedSalt Lake Tribune - http://www.sltrib.com/sltrib/blogs/hiking/50051336-150/klymit-fill-frame-sleeping.html.cspSoldierSystems.com - http://soldiersystems.net/2010/08/06/klymit/Outsideonline.comhttp://outside-blog.away.com/blog/2010/08/the-gear-junkie-best-in-show-from-outdoor-retailer-summer-2010.htmlExaminer.com - http://www.examiner.com/x-2028-Salt-Lake-City-Outdoor-Recreation-Examiner~y2010m8d9-2010-Outdoor-Retailer-Summer-Market-roundup-part-1Hikingcampingworld.com - http://www.hiking-camping-world.com/hiking-camping-gear-blog/2625/klymit-inertia-x-frame/Snewsnet.com - http://www.snewsnet.com/cgi-bin/snews/18844.html#OIA - http://www.outdoorindustry.org/news.industry.php?newsId=12145Blueridgeoutdoors - http://www.blueridgeoutdoors.com/blogs/gear-junkie/outdoor-retailer-trade-show-summer-2010/Holler - http://holler.outsidemedia.com/?tag=outdoor-retailerTechinfor.com - http://www.techinfo.com.my/index.php/from-argon-clothes-to-skeleton-sleeping-pads-klymit-delivers-more-innovation/http://www.zizot.com/from-argon-clothes-to-skeleton-sleeping-pads-klymit-delivers-more-innovation/The Standard - http://www.standard.net/topics/economy/2010/08/09/hart-skisnowboard-company-relocating-headquarters-distribution-operations-Hikingcamping Facebook - http://www.facebook.com/pages/Hiking-Camping/10150143402010322Salt Lake Tribune - http://www.sltrib.com/sltrib/outdoors/50065726-75/pad-klymit-frame-inertia.html.cspSpotcoolsuf.com - http://travel.spotcoolstuff.com/best-new-travel-gear-gadgets/outdoor-retailer-showBillings Gazette - http://billingsgazette.com/lifestyles/recreation/article_b46ffb6e-a5a9-11df-8174-001cc4c03286.html
http://www.youtube.com/watch?v=r7FgKkPHc1E
http://www.youtube.com/watch?v=r7FgKkPHc1E
Your story and new technology are fascinating and the students would love to hear about both. Take them on the entrepreneurial journey that you have been on and still engaged in. I want them to hear it from someone that is in the middle of the process. They have already heard from a couple who have already been there.Talk about best entrepreneur training was working 4 a start up. Ogden was ranked by 2 independant sources as best place for job this summer and ranked by Forbes as the ___ best city in nation to start a business. Call Jenny 4 updated seed numbers Nate Alder CEO Klymit
What are these? They are our Klymit valves. Where did it come from? Bike pumps!
What are these? They are our Klymit valves. Where did it come from? Bike pumps!
Your story and new technology are fascinating and the students would love to hear about both. Take them on the entrepreneurial journey that you have been on and still engaged in. I want them to hear it from someone that is in the middle of the process. They have already heard from a couple who have already been there.Talk about best entrepreneur training was working 4 a start up. Ogden was ranked by 2 independant sources as best place for job this summer and ranked by Forbes as the ___ best city in nation to start a business. Call Jenny 4 updated seed numbers Nate Alder CEO Klymit
Your story and new technology are fascinating and the students would love to hear about both. Take them on the entrepreneurial journey that you have been on and still engaged in. I want them to hear it from someone that is in the middle of the process. They have already heard from a couple who have already been there.Talk about best entrepreneur training was working 4 a start up. Ogden was ranked by 2 independant sources as best place for job this summer and ranked by Forbes as the ___ best city in nation to start a business. Call Jenny 4 updated seed numbers Nate Alder CEO Klymit
The metaphor of red and blue oceans describes the market universe. Red oceans are all the industries in existence today—the known market space. In the red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known. Here companies try to outperform their rivals to grab a greater share of product or service demand. As the market space gets crowded, prospects for profits and growth are reduced. Products become commodities or niche, and cutthroat competition turns the ocean bloody. Hence, the term red oceans.[3]Blue oceans, in contrast, denote all the industries not in existence today—the unknown market space, untainted by competition. In blue oceans, demand is created rather than fought over. There is ample opportunity for growth that is both profitable and rapid. In blue oceans, competition is irrelevant because the rules of the game are waiting to be set. Blue ocean is an analogy to describe the wider, deeper potential of market space that is not yet explored. [3]The corner-stone of Blue Ocean Strategy is 'Value Innovation'. A blue ocean is created when a company achieves value innovation that creates value simultaneously for both the buyer and the company. The innovation (in product, service, or delivery) must raise and create value for the market, while simultaneously reducing or eliminating features or services that are less valued by the current or future market. The authors criticize Michael Porter's idea that successful business are either low-cost providers or niche-players. Instead, they propose finding value that crosses conventional market segmentation and offering value and lower cost.This idea was originally proposed by Prof. Charles W. L. Hill from Michigan State University in 1988. Prof. Hill claimed that Porter's model was flawed because differentiation can be a means for firms to achieve low cost. Prof. Hill proposed that a combination of differentiation and low cost may be necessary for firms to achieve a sustainable competitive advantage.Many others have proposed similar strategies. For example, Swedish professors Jonas Ridderstråle and KjellNordström in their 1999 book Funky Business follow a similar line of reasoning. For example, "competing factors" in Blue Ocean Strategy are similar to the definition of "finite and infinite dimensions" in Funky Business. Just as Blue Ocean Strategy claims that a Red Ocean Strategy does not guarantee success, Funky Business explained that "Competitive Strategy is the route to nowhere". Funky Business argues that firms need to create "Sensational Strategies". Just like Blue Ocean Strategy, a Sensational Strategy is about "playing a different game" according to Ridderstrale and Nordstrom. Ridderstrale and Nordstrom also claim that the aim of companies is to create temporary monopolies. Kim and Mauborgne explain that the aim of companies is to create blue oceans, that will eventually turn red. This is the same idea expressed in the form of an analogy. Ridderstråle and Nordström also claimed in 1999 that "in the slow-growth 1990s overcapacity is the norm in most businesses". Kim and Mauborgne claim that blue ocean strategy make sense in a world that supply exceeds demand.Preceding workThe contents of the book are based on research and a series of Harvard Business Review articles as well as academic articles on various dimensions of the topic.Kim and Mauborgne studied about one hundred fifty positions made from 1880-2000 in more than thirty industries and closely examined the relevant business players in each . They analyzed the winning business players as well as the less successful competitors. Studied industries included hotels, cinemas, retail stores, airlines, energy, computers, broadcasting, construction, automotive and steel. They searched for convergence among the more and less successful players. Divergence across the two groups was also studied to discover the common factors leading to strong growth and the key differences separating those winners from the mere survivors and the losers. Kim and Mauborgne defined a consistent and common pattern across all the seemingly idiosyncratic success stories and first called it value innovation, and then Blue Ocean Strategy.Research results were first published in 1997 in a Harvard Business Review article by Kim and Mauborgne titled "Value Innovation: The Strategic Logic of High Growth"[4]. The ideas, tools and frameworks were tested and refined over the years in corporate practice in Europe, the United States and Asia and presented in the following eight additional articles, before being published in the form of a book in 2005.1997. "Fair Process: Managing in the Knowledge Economy". Harvard Business Review 75, January-February, 102-112.1998. Procedural Justice, Strategic Decision Making and the Knowledge Economy." Strategic Management Journal, April.1999. "Creating New Market Space." Harvard Business Review 77, January-February, 83-93.1999. "Strategy, Value Innovation, and the Knowledge Economy." Sloan Management Review 40, no.3, Spring.2000. "Knowing a Winning Business Idea When You See One." Harvard Business Review 78, September-October, 129-141.2002. "Charting Your Company's Future." Harvard Business Review 80, June, 76-85.2003. "Tipping Point Leadership." Harvard Business Review 81, April, 60-69.2004. "Blue Ocean Strategy." Harvard Business Review, October, 76-85.The name "Blue Ocean Strategy" was introduced in the Harvard Business Review article published in October 2004.[5]. The book builds on and extends the work presented in these articles by providing a narrative arc that draws all these ideas together to offer a unified framework for creating and capturing blue oceans.[edit] ExamplesExamples documented in the bookSome examples of companies that may have created new market spaces in the opinion of Kim and Mauborgne include ;Cirque du Soleil: Blending of opera and ballet with circus format while eliminating star performer and animals;Netjets: fractional jet ownership;Southwest Airlines: offering flexibility of bus travel at the speed of air travel using secondary airports;Curves: redefining market boundaries between health clubs and home exercise programs for women;Home Depot: offering the prices and range of lumberyard, while offering consumers classes to help them with DIY projects;Dyson: Cyclonic Vacuum Cleaners.Recent Application ExamplesReports of businesses using Blue Ocean Strategy concepts include:China Mobile: China Mobile CEO Wang Jianzhou talked about China's hinterland as a classic "blue-ocean market," where the company is casting its net widely without worrying about getting tangled up with the nets of rivals.[6]Pitney Bowes: Michael Critelli, the departing CEO of Pitney Bowes, explained how Pitney Bowes created the Advanced Concept & Technology Group (ACTG), a unit responsible for identifying and developing new products outside. Critelli cited ACTG's development of a machine, which enables people to design and print their own postage from their desktops, as an example of a blue ocean strategic move.[7]Starwood: One group which has been exploring blue ocean thinking for the past three years is Starwood Hotels and Resorts. In an interview to INSEAD Knowledge, Robyn Pratt, Vice President, Six Sigma and Operational Innovation talks about how they are taking a step-by-step approach to implementing the concept. [8][edit] Blue Ocean Strategy vs. competition based strategiesKim and Mauborgne argue that traditional competition-based strategies (red ocean strategies) while necessary, are not sufficient to sustain high performance. Companies need to go beyond competing. To seize new profit and growth opportunities they also need to create blue oceans.[9]The authors argue that competition based strategies assume that an industry’s structural conditions are given and that firms are forced to compete within them, an assumption based on what academics call the structuralist view, or environmental determinism.[10] To sustain themselves in the marketplace, practitioners of red ocean strategy focus on building advantages over the competition, usually by assessing what competitors do and striving to do it better. Here, grabbing a bigger share of the market is seen as a zero-sum game in which one company’s gain is achieved at another company’s loss. Hence, competition, the supply side of the equation, becomes the defining variable of strategy. Here, cost and value are seen as trade-offs and a firm chooses a distinctive cost or differentiation position. Because the total profit level of the industry is also determined exogenously by structural factors, firms principally seek to capture and redistribute wealth instead of creating wealth. They focus on dividing up the red ocean, where growth is increasingly limited.[citation needed]Blue ocean strategy, on the other hand, is based on the view that market boundaries and industry structure are not given and can be reconstructed by the actions and beliefs of industry players. This is what the authors call “reconstructionist view”. Assuming that structure and market boundaries exist only in managers’ minds, practitioners who hold this view do not let existing market structures limit their thinking. To them, extra demand is out there, largely untapped. The crux of the problem is how to create it. This, in turn, requires a shift of attention from supply to demand, from a focus on competing to a focus on value innovation—that is, the creation of innovative value to unlock new demand. This is achieved via the simultaneous pursuit of differentiation and low-cost. As market structure is changed by breaking the value/cost tradeoff, so are the rules of the game. Competition in the old game is therefore rendered irrelevant. By expanding the demand side of the economy new wealth is created. Such a strategy therefore allows firms to largely play a non–zero-sum game, with high payoff possibilities. [11][edit] Tools and frameworksBlue Ocean Strategy has introduced a number of practical tools, methodologies and frameworks to formulate and execute Blue Ocean Strategies, attempting to make creation of blue oceans a systematic, repeatable process. Some of these are listed below;Basic tools of Blue Ocean StrategyThe strategy canvasThe Four Actions frameworkEliminate-Reduce-Raise-Create GridThe initial litmus test for BOS: focus, divergence, compelling tagline Frameworks/methodologies applicable to strategy executionTipping Point Leadership approachFour Organizational Hurdles frameworkKingpins approach, Fishbowl management, atomizationHot spots, cold spots and consigliere approach3 E principles of Fair ProcessAdditional tools/methodologies/frameworks for strategy formulationThe six paths frameworkThe sequence of Blue Ocean StrategyBuyer Utility mapBuyer experience cycleThe profit model of Blue Ocean StrategyPrice corridor of the mass modelFour Step Visualizing Strategy ProcessPioneer-Migrator Settler MapThree tiers of noncustomers framework[edit] CriticismsWhile co-authors, Professor Kim and Affiliate Professor Mauborgne, propose approaches to finding uncontested market space, at the present there are few if any success stories of companies that applied their theories. This hole in their data persists despite the publication of Value Innovation concepts since 1997. A critical question is whether this book and its related ideas are descriptive rather than prescriptive.[12] The authors present many examples of successful innovations, and then explain from their Blue Ocean perspective - essentially interpreting success through their lenses.[13]The research process followed by the authors has been criticized on several grounds. No control group was used. There is no way to know how many companies exploiting a blue ocean strategy concept failed. The theory therefore does not meet the falsifiability criteria in practice. A deductive process was not followed. The examples in the book are selected to "tell a winning story".A whole chapter of the book explaining what the authors call "Tipping Point Leadership" is based on a conclusion that the drop in crime in New York city was caused by a change in policies, actions, and leadership. However, according to the book Freakonomics, crime rates dropped due to an increase in abortion rates several years earlier. Crime rates fell simultaneously in cities other than New York that had not applied what the authors call Tipping Point Leadership.[14]Brand and communication are taken for granted and do not represent a key for success. Kim and Maubourgne take the marketing of a value innovation as a given, assuming the marketing success will come as a matter of course. [12]The book only presents a snaphot overview of 3 industries: automobiles, computers and movie theaters.It is argued that rather than a theory, Blue Ocean Strategy is an extremely successful attempt to brand a set of already existing concepts and frameworks with a highly "sticky" idea. The blue ocean/red ocean analogy is a powerful and memorable metaphor, which is responsible for its popularity. This metaphor can be powerful enough to stimulate people to action. However, the concepts behind the Blue Ocean Strategy (such as the competing factors, the consumer cycle, non-customers, etc.) are not new. Many of these tools are also used by Six Sigma practitioners and proposed by other management gurus."Eliminate-Reduce-Raise-Create" Grid which forms the base of creating the Blue Ocean, can be found in the form of principles of TRIZ which are much more powerful in creating inventive/innovative solutions.[citation needed]The book does not explain the most critical aspect that of differentiation between a product innovation which may have the same target users, or a different product, a different way of execution of the same and different market all together. We see several product innovations but they target the same customers, some are successful in enhancing customer and revenue market share and become case studies and some dont take off at all. Both can be back fitted to be derived through blue ocean strategic framework.
DO NOT compete in existing market space. INSTEAD you should create uncontested market space. 2. DO NOT beat the competition. INSTEAD you should make the competition irrelevant. 3. DO NOT exploit existing demand. INSTEAD you should create and capture new demand. 4. DO NOT make the value/cost trade-off. INSTEAD you should break the value/cost trade-off. 5. DO NOT align the whole system of a company's activities with its strategic choice of differentiation or low cost. INSTEAD you should align the whole system of a company's activities in pursuit of both differentiation and low cost. Some cases: Airline industry price wars result in bankruptcies and low profit margins. Southwest Airlines creates a new market by offering the speed of air travel with the low cost and flexibility of driving. Golf equipment industry competes to win a greater share of existing golf customers. Callaway Golf creates "Big Bertha", a golf club with a large head that attracted new customers to golf that had been frustrated by the difficulty of hitting the ball. The cosmetic industry creates a red ocean with models, expensive advertising, and promises of youth and beauty. The Body Shop creates a blue ocean that lasts more than a decade by creating functional cosmetics that defied the industry which sold emotionally appealing cosmetics. The wine industry gluts the market with a red ocean of thousands of brands competing on the finest oaks and tannins and legacy winey names. Casella wines creates [yellow tail], a blue ocean wine that succeeded by eliminating complexity, elitism and consumer confusion and creating a fun simple image that non-wine drinkers could enjoy. Examples of strategic moves that created blue oceans of new, untapped demand: NetJets (fractional Jet ownership)Cirque du Soleil (the circus reinvented for the entertainment market)Starbucks (coffee as low-cost luxury for high-end consumers)Ebay (online auctioning)Sony (the Walkman - personal portable stereos)Cars: Japanese fuel-efficient autos (mid-70s) and Chrysler minivan (1984)Computers: Apple personal computer (1978) and Dell's built-to-order computers (mid-1990s). http://www.salesmarketingconsultant.com/blueocean.htmWhy play a game createdand dominated by your competitors?Successful blue ocean companiesnever battle incumbents head-on. Theyre-write the rules.http://www.wisdomgroup.com/report/make_your_competition_irrelevant/
