Presentatie blue ocean strategy - Prof. dr. Wim Vanhaverbeke - Universiteit Hasselt - clustermeeting 4 Strategie & Innovatie - OndernemersUniversiteit - 09/05/2012

2. Clustermeeting 4
Blue Ocean Strategy
9 mei 2012
De Barrier Houthalen
Voorzitter: dhr. Matty Zadnikar, Z-Group
Professor: Prof. dr. Wim Vanhaverbeke, UHasselt
Spreker: dhr. Jo Nelissen, ABN Klimatisatie

3. Blue Ocean
Strategy
Go where the profits and growth are - and where the competition isn’t
W. Chan Kim & Renée Mauborgne

4. Analytical tools and frameworks

5. Strategy Canvas
High
Low
Wine range
Use of Above-the-line Vineyard prestige
Price
Figure 2-1 enological marketing Aging and legacy Wine
terminology quality complexity

6. The strategy canvas of Cirque du Soleil
High
Ringling Bros. & Barnum & Bailey
Cirque du Soleil
Smaller
Regional
Circuses
Low
Animal Multiple Thrills Theme Multiple
Price show productions
shows & danger
Aisle arenas Fun Artistic
Unique Refined music
Star concessions & venue watching & dance
Performers humor enjoinment

7. Four Actions Framework: Key to Value Curve
Raise
The key to discovering a
new value curve lies What factors should
be raised well beyond
in answering the industry
four basic questions standard?
Eliminate Create
What factors should What factors should be
be eliminated that created that the
the industry has taken industry has never
for granted? offered?
Reduce
What factors should
be reduced well
below the industry
standard?
8

8. BOS Logic: Reconstruct market boundaries
Boundaries of Head-to-Head Creating
Competition Competition New Market Space
Focuses on rivals within its Looks across alternative
Industry industries
industry
Focuses on competitive position Looks across strategic groups
Strategic Group within its industry
within strategic group
Focuses on better serving the Redefines the buyer group of the
Buyer Group industry
buyer group
Focuses on maximizing the value Looks across to complementary
Scope of Product and product and service offerings that
of product and service offerings
Service Offerings go beyond the bounds of its
within the bounds of its industry
industry
Focuses on improving price- Rethinks the functional-emotional
Functional-emotional
performance with the functional- orientation of its industry
Orientation of an
emotional orientation of this
Industry
industry
Focuses on adapting to external Participation in shaping external
Time/Trends trends over time
trends as they occur

9. Four Steps of Visualizing Strategy
1. Visual 2. Visual 3. Visual Strategy 4. Visual
Awakening Exploration Fair Communication
•Compare your •Go into the field to •Draw your “to be” •Distribute your
business with your explore the six strategy canvas based before-and-after
competitors’ by paths to creating on insights from field strategic profiles on
drawing your “as blue oceans. observations. one page for easy
is” strategy canvas. comparison.
•Observe the •Get feedback on
•See where your distinctive alternative strategy •Support only those
strategy needs to advantages of canvases from projects and
change alternative products customers, operational moves
and services. competitors’ that allow your
customers, and company to close the
•See which factors noncustomers. gaps to actualize the
you should new strategy.
eliminate, create, or •Use feedback to build
change. the best “to be” future
strategy.

10. Three Tiers of Customers
There is a universe of noncustomers
which can be turned into customers
to offer a big blue ocean market.
Third
Tier
1st tier: “Soon-to-be”
noncustomers who are on the
edge of your market Second
Tier
2nd tier: “Refusing” First
noncustomers who consciously Tier
choose against your market
Your
3rd tier: “Unexplored” Market
noncustomers who are in
markets distant from yours

11. Buyer utility
Is there exceptional buyer utility in your
business idea? No  Rethink
Yes
Price
Is your price easily accessible to the
BOS Logic:
mass of buyers?
Yes
No  Rethink Get the
Cost strategic
Can you attain your cost target to profit
at your strategic price?
No  Rethink sequence
Yes
Adoption
right
What are the adoption hurdles in
actualizing your business idea? Are
you addressing them up front? No  Rethink
Yes
A Commercially
Viable Blue Ocean
Idea

12. Buyer Utility Map
The Six Stages of the Buyer Experience Cycle
2.Delivery 4.Supplements 6.Disposal
1.Purchase 3.Use 5.Maintenance
Customer
Productivity
The Six Utility Levers
Simplicity
Convenience
Risk
Fun and Image
Environmental
friendliness

13. .
Buyer Experience Cycle
Purchase Delivery Use Supplements Maintenance Disposal
How long does How long does Does the product Do you need Does the Does use of
it take to find it take to get require training or other products product the product
the product the product expert assistance? and services to require create waste
you need? delivered? make this product external items?
Is the product easy
work? maintenance?
Is the place of How difficult is to store when not in How easy is it
purchase it to unpack use? If so, how costly How easy is it to dispose of
attractive and and install the are they? to maintain the product?
How effective are
accessible? new product? and upgrade
the product’s How much time Are there
the product?
How secure is Do buyers features and do they take? legal or
the transaction have to functions? How costly is environmenta
How easy are
environment? arrange maintenance? l issues in
Does the product or they to obtain?
delivery disposing of
How rapidly service deliver far
themselves? If the product
can you make more power or
yes, how safely?
a purchase? options than
costly and
required by the How costly is
difficult is this?
average user? Is in disposal?
overcharged with
bells and whistles?

14. Uncovering Blocks to Buyer Utility
Purchase Delivery Use Supple- Mainte- Disposal
ments nance
Customer Productivity: In which stage are the biggest blocks to customer productivity?
Simplicity: In which stages are the biggest blocks to simplicity?
Convenience: In which stage are the biggest blocks to convenience?
Risk: In which stage are the biggest blocks to reducing risks?
Fun and Image: In which stage are the biggest blocks to fun and image?
Environmental In which stage are the biggest blocks to environmental
Friendliness: friendliness?

15. Profit Model of Blue Ocean Strategy
The Strategic Price
The profit model of blue
ocean strategy shows
how value innovation
The Target Profit typically maximizes
profit by using the three
levers of strategic
price, target cost, and
pricing innovation.
The Target Cost
Streamlining and Cost
Partnering
Innovations
Pricing Innovation