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Blue
Ocean
Strategy
Prof. Dr. Jan Kirenz
blue ocean strategy idea
Companies tend to engage in head-to-head competition in search of sustained ...
Prof. Dr. Jan Kirenz
blue ocean strategy 6 Paths Framework
Source: Blue Ocean Strategy (2015). Retrieved October 22, 2015,...
Prof. Dr. Jan Kirenz
The Six Paths Framework allows managers to address the search risk many companies struggle
with. It e...
Prof. Dr. Jan Kirenz
blue ocean strategy TIERS of Customers
Source: Blue Ocean Strategy (2015). Retrieved October 22, 2015...
Prof. Dr. Jan Kirenz
Typically, to grow their share of a market, companies strive to retain and expand their existing
cust...
Prof. Dr. Jan Kirenz
Although the universe of noncustomers typically offers big blue ocean opportunities, few
companies ha...
Prof. Dr. Jan Kirenz
blue ocean strategy Value Innovation
Source: Blue Ocean Strategy (2015). Retrieved October 22, 2015, ...
Prof. Dr. Jan Kirenz
Value innovation, the cornerstone of blue ocean strategy, is the simultaneous pursuit of differentiat...
Prof. Dr. Jan Kirenz
blue ocean strategy Four Actions Framework
Source: Blue Ocean Strategy (2015). Retrieved October 22, ...
Prof. Dr. Jan Kirenz
The Four Actions Framework is used to reconstruct buyer value elements in crafting a new
value curve....
Prof. Dr. Jan Kirenz
blue ocean strategy ERRC GRID
Source: Blue Ocean Strategy (2015). Retrieved October 22, 2015, from ht...
Prof. Dr. Jan Kirenz
The Eliminate-Reduce-Raise-Create (ERRC) Grid compliments the Four Actions Framework. It pushes
compa...
Prof. Dr. Jan Kirenz
blue ocean strategy Strategy Canvas
Source: Blue Ocean Strategy (2015). Retrieved October 22, 2015, f...
Prof. Dr. Jan Kirenz
The strategy canvas is the central diagnostic and action framework for building a compelling blue
oce...
Prof. Dr. Jan Kirenz
blue ocean
strategySequence of BOS
Source: Blue Ocean Strategy (2015). Retrieved October 22, 2015, fr...
Prof. Dr. Jan Kirenz
Companies need to build their blue ocean strategy in sequence.
This framework can help companies ask ...
Prof. Dr. Jan Kirenz
blue ocean strategy Buyer Utility MAP
Source: Blue Ocean Strategy (2015). Retrieved October 22, 2015,...
Prof. Dr. Jan Kirenz
blue ocean strategy Buyer Utility MAP
The Buyer Utility Map helps to get managers thinking from a dem...
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Blue Ocean Strategy - Toolbox

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Companies tend to engage in head-to-head competition in search of sustained profitable growth.

Yet in today’s overcrowded industries competing head-on results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool.

Lasting success increasingly comes, not from battling competitors, but from creating blue oceans of untapped new market spaces ripe for growth.

Blue Ocean Strategy provides a systematic approach to making the competition irrelevant.

Veröffentlicht in: Business
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Blue Ocean Strategy - Toolbox

  1. 1. Blue Ocean Strategy
  2. 2. Prof. Dr. Jan Kirenz blue ocean strategy idea Companies tend to engage in head-to-head competition in search of sustained profitable growth. Yet in today’s overcrowded industries competing head-on results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. Lasting success increasingly comes, not from battling competitors, but from creating blue oceans of untapped new market spaces ripe for growth. Blue Ocean Strategy provides a systematic approach to making the competition irrelevant. Source: Blue Ocean Strategy (2015). Retrieved October 22, 2015, from https://www.blueoceanstrategy.com
  3. 3. Prof. Dr. Jan Kirenz blue ocean strategy 6 Paths Framework Source: Blue Ocean Strategy (2015). Retrieved October 22, 2015, from https://www.blueoceanstrategy.com
  4. 4. Prof. Dr. Jan Kirenz The Six Paths Framework allows managers to address the search risk many companies struggle with. It enables them to successfully identify out of the haystack of possibilities that exist, commercially compelling blue oceans by reconstructing market boundaries. There are six basic approaches to reconstructing market boundaries. These challenge the six fundamental assumptions underlying many companies’ strategies that keep companies trapped competing in red oceans. Instead of looking within the accepted boundaries of competition, the Six Paths Framework allows managers to look systematically across them to create blue oceans. The table above outlines these six basic assumptions and the pathway managers can take to break away from head-to-head competition towards blue ocean creation. blue ocean strategy 6 Paths Framework Source: Blue Ocean Strategy (2015). Retrieved October 22, 2015, from https://www.blueoceanstrategy.com
  5. 5. Prof. Dr. Jan Kirenz blue ocean strategy TIERS of Customers Source: Blue Ocean Strategy (2015). Retrieved October 22, 2015, from https://www.blueoceanstrategy.com
  6. 6. Prof. Dr. Jan Kirenz Typically, to grow their share of a market, companies strive to retain and expand their existing customer base. This often leads to finer segmentation and greater tailoring of offerings to better meet customer preferences. The more intense the competition is, the greater, on average, is the resulting customization of offerings. As companies compete to embrace customer preferences through finer segmentation, they often risk creating too-small target markets. To maximize the size of their blue oceans, companies need to take a reverse course. Instead of concentrating on customers, they need to look to noncustomers. And instead of focusing on customer differences, they need to build on powerful commonalities in what buyers value. This reorientation allows companies to reach beyond existing demand to unlock a new mass of customers that did not exist before. blue ocean strategy TIERS of Customers Source: Blue Ocean Strategy (2015). Retrieved October 22, 2015, from https://www.blueoceanstrategy.com
  7. 7. Prof. Dr. Jan Kirenz Although the universe of noncustomers typically offers big blue ocean opportunities, few companies have keen insight into who noncustomers are and how to unlock them. To convert this huge latent demand into real demand in the form of thriving new customers, companies need to deepen their understanding of the universe of noncustomers. blue ocean strategy TIERS of Customers Source: Blue Ocean Strategy (2015). Retrieved October 22, 2015, from https://www.blueoceanstrategy.com
  8. 8. Prof. Dr. Jan Kirenz blue ocean strategy Value Innovation Source: Blue Ocean Strategy (2015). Retrieved October 22, 2015, from https://www.blueoceanstrategy.com
  9. 9. Prof. Dr. Jan Kirenz Value innovation, the cornerstone of blue ocean strategy, is the simultaneous pursuit of differentiation and low cost, creating a leap in value for both buyers and the company. Because value to buyers comes from the offering’s utility minus its price, and because value to the company is generated from the offering’s price minus its cost, value innovation is achieved only when the whole system of utility, price, and cost is aligned. Break the value-cost tradeoff by answering the following questions: • What factors can be eliminated that the industry has taken for granted? • What factors can be reduced well below the industry’s standard? • What factors can be raised well above the industry’s standard? • What factors can be created that the industry has never offered? blue ocean strategy Value Innovation Source: Blue Ocean Strategy (2015). Retrieved October 22, 2015, from https://www.blueoceanstrategy.com
  10. 10. Prof. Dr. Jan Kirenz blue ocean strategy Four Actions Framework Source: Blue Ocean Strategy (2015). Retrieved October 22, 2015, from https://www.blueoceanstrategy.com
  11. 11. Prof. Dr. Jan Kirenz The Four Actions Framework is used to reconstruct buyer value elements in crafting a new value curve. To break the trade-off between differentiation and low cost and to create a new value curve, the framework poses four key questions, shown in the diagram, to challenge an industry’s strategic logic. blue ocean strategy Four Actions Framework Source: Blue Ocean Strategy (2015). Retrieved October 22, 2015, from https://www.blueoceanstrategy.com
  12. 12. Prof. Dr. Jan Kirenz blue ocean strategy ERRC GRID Source: Blue Ocean Strategy (2015). Retrieved October 22, 2015, from https://www.blueoceanstrategy.com
  13. 13. Prof. Dr. Jan Kirenz The Eliminate-Reduce-Raise-Create (ERRC) Grid compliments the Four Actions Framework. It pushes companies not only to ask the questions posed in the Four Actions framework but also to act on all four to create a new value curve, which is essential to unlocking a new blue ocean. By driving companies to fill in the grid with the actions of eliminating and reducing as well as raising and creating, the grid gives companies four immediate benefits: It pushes them to simultaneously pursue differentiation and low cost to break the value-cost trade off. It immediately flags companies that are focused only on raising and creating, thereby lifting the cost structure and often overengineering products and services – a common plight for many companies. It is easily understood by managers at any level, creating a high degree of engagement in its application. Because completing the grid is a challenging task, it drives companies to thoroughly scrutinize every factor the industry. blue ocean strategy ERRC GRID Source: Blue Ocean Strategy (2015). Retrieved October 22, 2015, from https://www.blueoceanstrategy.com
  14. 14. Prof. Dr. Jan Kirenz blue ocean strategy Strategy Canvas Source: Blue Ocean Strategy (2015). Retrieved October 22, 2015, from https://www.blueoceanstrategy.com
  15. 15. Prof. Dr. Jan Kirenz The strategy canvas is the central diagnostic and action framework for building a compelling blue ocean strategy. The horizontal axis captures the range of factors that the industry competes on and invests in, while the vertical axis captures the offering level that buyers receive across all of these key competing factors. The strategy canvas serves two purposes: • To capture the current state of play in the known market space, which allows users to clearly see the factors that the industry competes on and where the competition currently invests and • To propel users to action by reorienting focus from competitors to alternatives and from customers to noncustomers of the industry The value curve is the basic component of the strategy canvas. It is a graphic depiction of a company’s relative performance across its industry’s factors of competition. A strong value curve has focus, divergence as well as a compelling tagline. blue ocean strategy Strategy Canvas Source: Blue Ocean Strategy (2015). Retrieved October 22, 2015, from https://www.blueoceanstrategy.com
  16. 16. Prof. Dr. Jan Kirenz blue ocean strategySequence of BOS Source: Blue Ocean Strategy (2015). Retrieved October 22, 2015, from https://www.blueoceanstrategy.com
  17. 17. Prof. Dr. Jan Kirenz Companies need to build their blue ocean strategy in sequence. This framework can help companies ask the key questions at four critical steps: • buyer utility, • price, • cost, • and finally adoption. blue ocean strategy Sequence of BOS Source: Blue Ocean Strategy (2015). Retrieved October 22, 2015, from https://www.blueoceanstrategy.com
  18. 18. Prof. Dr. Jan Kirenz blue ocean strategy Buyer Utility MAP Source: Blue Ocean Strategy (2015). Retrieved October 22, 2015, from https://www.blueoceanstrategy.com
  19. 19. Prof. Dr. Jan Kirenz blue ocean strategy Buyer Utility MAP The Buyer Utility Map helps to get managers thinking from a demand-side perspective. It outlines all the levers companies can pull to deliver utility to buyers as well as the different experiences buyers can have of a product or service. This mindset helps managers identify the full range of utility propositions that a product or service can offer. The Buyer Experience Cycle (BEC): A buyer’s experience can usually be broken down into a cycle of distinct stages, running more or less sequentially from purchase to disposal. Each stage encompasses a wide variety of specific experiences. Purchasing, for example, might include the experience of browsing Amazon.com as well as the experience of pushing a shopping cart through Wal-Mart’s aisles. Utility levers: Cutting across the stages of the buyer’s experience are what we call utility levers – the ways in which companies unlock utility for their customers. Most of the levers are obvious. Simplicity, fun and image, and environmental friendliness need little explanation. Source: Blue Ocean Strategy (2015). Retrieved October 22, 2015, from https://www.blueoceanstrategy.com

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