Foundation First - Why Your Website and Content Matters - David Pisarek
Blue ocean strategy
1.
2. Contents
Blue Ocean Vs. Red Ocean Strategy
Blue Ocean Strategy Tools
Strategy Canvas and Four Action Framework
Six Principals of Blue Ocean Strategy
Formulating Blue Ocean Strategy
Executing Blue Ocean Strategy
3.
4.
5. Strategy
Canvas
A diagnostic tool for building a compelling blue
ocean strategy
It captures the current state of play in the
known market space
Allow you to understand :
•where the competition is currently investing
•the factors the industry currently competes
on in product, service and delivery
•what customers receive from existing
competitive offerings on the market
9. Star performers
Animal shows
Aisle concession sales
Multiple show arenas
Theme
Redefined environment
Multiple productions
Artistic music and dance
Fun and humor
Thrill and danger
Unique venue
The Case of Cirque du Soleil
Eliminate Reduce
Create Raise
10. Formulation Principles Execution Principles
1. Reconstruct market
boundaries
2. Focus on the big picture,
not the numbers
3. Reach beyond existing
demand
4. Get the strategic sequence
right
5. Overcome key
organizational hurdles
6. Build execution into
strategy
11.
12. Blood Tears and Sweat
Define their industry similarly and focus on being best
within it.
Look at their industries through the lens of generally
accepted strategic groups, and strive to stand out in the
strategic group they play in.
Focus on the same buyer group, be it the purchaser, the
user or the influencer.
Define he scope of the products and services offered by
their industry similarly.
Accept the industry’s functional or emotional orientation.
Focus on same point in time-and often on current
competitive threats-in formulating strategies.
13. 1. Reconstruct Market Boundaries
Head-to-Head Strategy Blue Ocean Strategy
Focus on rivals with in
industry
Focuses on competitive
position with in strategic
group
Focuses on better serving
the buyer group
Looks across alternative
industries
Looks across strategic group
within industry
Redefines the industry
buyer group
14. ……Market Boundaries
Head-to-Head Strategy Blue Ocean Strategy
Focuses on maximizing the
value of product or service
offerings with in the
bounds of its industry
Focuses on adapting to
external trends as they
occur
Looks across to
complementary product
and service offerings
Participates in shaping
external trends over time
15. 2. Focus on the Big Picture, not the Numbers
Focus on the
Big Picture, not
the Numbers
The Four Steps of
Visualizing Strategy
Visual Awakening
Visual Exploration
Visual Strategy Fair
Visual
Communication
16. ……not the Numbers
Visual
Awakening
Compare your business with your
competitors’ by drawing your “as
is” strategy canvas
See where your strategy needs to
change
17. ……not the Numbers
Go to the field to explore the six
paths to creating blue oceans
Observe the distinctive advantages
of alternative products and services
See which factors you should
eliminate, create, or change
18. ……not the Numbers
Draw your “to be” strategy canvas based
on insights from field observations
Get feedback on alternative strategy
canvases from customers, competitors’
customers, and noncustomers
Use feedback to build the best “to be”
future strategy
19. ……not the Numbers
Distribute your before-and-after
strategic profiles on one page for easy
comparison
Support only those projects and
operational moves that allow your
company to close the gap to actualize
the new strategy
20. 3. Reach Beyond Existing Demand
The Three
Tier of
Non-
customers
First tier: “Soon to be” non-
customers who are the edge of
your market, waiting to jump
ship
Second tier: “Refusing” non-
customers who consciously
choose against your market
Third tier: “Unexplored” non-
customers who are in markets
distant from yours
21. 4. Get The Strategic Sequence Right
Buyer utility
Is there exceptional buyer
utility in your B-idea?
Price
Is your price easily
accessible to the mass of
buyers?
Adoption
What are the adoption
hurdles in actualizing
your business idea?
Cost
Can you attain your cost
target to profit at your
strategic price?
A commercially viable blue
ocean idea
24. ……Hurdles
Cognitive
Hurdle
(status quo)
Ride the “Electric Sewer”
Meet with Disgruntled Customers
Resource
Hurdle
Redistribute resources to your hotspots
Redirect resources from your cold spots
Engage in horse trading
25. ……Hurdles
Motivational
Hurdle
Zoom in on Kingpins (key influencers)
Place kingpins on a fishbowl
Atomize to get the organization to change itself
Political
Hurdle
Secure a consigliere on your top
management team
Leverage your angels and silence your
devils
26. 6. Build Execution Into Strategy
Fair Process of Strategy
Attitudes
Trust and Commitment – “I feel my opinion counts”
Strategy Execution
Exceeds Expectation – self initiated
Behaviour
Voluntary Cooperation – “I’ll go beyond the call of duty”
Strategy Formulation Process
Fair Process –Engagement,Explanation, Expectation clarity
27. W. Chan Kim and Renée Mauborgne, Blue Ocean
Strategy, HBS Publication.