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.
8. Four Action Framework Eliminate Reduce Raise Create Which of the factors that the industry takes for granted should be eliminated? Which factors should be reduced well below the industryâs standard? Which factors should be created that the industry has never offered? Which factors should be raised well above the industryâs standard?
20. 4. Get The Strategic Sequence Right The Sequence of Blue Ocean Strategy Buyer utility Is there exceptional buyer utility in your business idea? Price Is your price easily accessible to the mass of buyers? Cost Can you attain your cost target to profit at your strategic price? Adoption What are the adoption hurdles in actualizing your business idea? A commercially viable blue ocean idea
25. 5. Build Execution Into Strategy Fair Process of Strategy Strategy Formulation Process Fair Process â Engagement, Explanation, Expectation clarity Attitudes Trust and Commitment â âI feel my opinion countsâ Behavior Voluntary Cooperation â âIâll go beyond the call of dutyâ Strategy Execution Exceeds Expectation â self initiated