Blue Ocean Strategy

What is it?

The Blue Ocean Strategy is based on the idea of creating new markets where none previously existed. Blue Ocean thinking has not only created new industries- it has created exceptionally profitable new industries. Blue Oceans

Examples of B.O.S?

Cars, recorded music, aviation, petrochemicals, iPad, Starbucks, Southwest Airlines, The Body Shop.

6 Principles of B.O.S?

One: "Reconsruct Market Bounderies"
- re-evaluate the premises that form your industry's assumptions and shape your company's business model. Strategically examine your industry's key competitive drivers to create a "strategy canvas" that displays each factor graphically.

Two: "Focus on the Big Picture. Not the Numbers"
- keep your eye on the overall view and don't get lost in the statistics. Use a "strategy canvas", a graphic representation of your competitor's products, prices and industry positions.

Three: "Reach Beyond Existing Demand"
- focus on potential future customers.

Four: "Get the Strategic Sequence Right"
- execute your strategy sequentially to achieve your "value innovation." The technology must provide convenience, safety, and entertainment.

Five: "Overcome Key Organizational Hurdles"
-to implement change with minimal disruption, use "tipping point leadership." The key is using resources when they are most powerful.

Six: "Build Execution into Strategies"
- reduce your management risk by incorporating blue ocean implementation onto your company's ongoing processes.