Blue ocean strategy
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This document discusses the key concepts of Blue Ocean Strategy (BOS), which involves creating new market space instead of competing in existing markets. BOS pursues differentiation and low costs simultaneously. It aims to make competition irrelevant by creating new demand rather than exploiting existing demand. The document outlines tools for formulating a blue ocean strategy, including the Strategy Canvas and Four Actions Framework, and emphasizes building execution into the strategy from the start.
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BOS is a theory of strategy developed over a decade of studying 150 strategic moves across over 30 industries over 100 years. It involves simultaneously pursuing differentiation and low costs to create new market space, rather than competing directly. BOS offers systematic methodologies for both new and existing firms to pursue blue oceans, using frameworks like the strategy canvas and value curve to formulate and execute strategy visually and effectively communicate it. The key concepts of BOS are value innovation, tipping point leadership, and fair process.Strategia Oceano Blu 12: Il Pricing Strategico
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Blue ocean strategy
- 1. Go where profits and growth are and where the competition isnt
- 3. BOS is the result of a decade-long study of 150 strategic moves spanning more than 30 industries over 100 years (1880-2000). BOS is the simultaneous pursuit of differentiation and low cost. The aim of BOS is not to out-perform the competition in the existing industry, but to create new market space or a blue ocean, thereby making the competition irrelevant. BOS covers both strategy formulation and strategy execution. The three key conceptual building blocks of BOS are: value innovation, tipping point leadership, and fair process.
- 5. Compete in existing market space Create uncontested market space Beat the competition Make competition irrelevant Exploit existing demand Create and capture new demand Make the cost-trade-off Break the cost-trade-off Align the whole system of a Align the whole system of a companys activities with its companys activities in pursuit of strategic choice of differentiation and low cost differentiation or low cost
- 7. For blue ocean strategy formulation The Strategy Canvas The initial litmus test for BOS: focus, divergence, compelling tagline The Four Actions Framework Eliminate-Reduce-Raise-Create Grid The Six Paths Framework Buyer Utility Map Buyer Experience Cycle Price Corridor of the Mass model Four Steps of Visualizing Strategy Process Pioneer-Migrator-Settler Map Three Tiers of Noncustomers Framework The Sequence of Blue Ocean Strategy
- 8. Overcome key organizational hurdles. Build execution into strategy