This document discusses the key concepts of Blue Ocean Strategy (BOS), which involves creating new market space instead of competing in existing markets. BOS pursues differentiation and low costs simultaneously. It aims to make competition irrelevant by creating new demand rather than exploiting existing demand. The document outlines tools for formulating a blue ocean strategy, including the Strategy Canvas and Four Actions Framework, and emphasizes building execution into the strategy from the start.

1. “Go where profits and growth are
and where the competition isn’t”

3. • BOS is the result of a decade-long study of 150 strategic
moves spanning more than 30 industries over 100 years
(1880-2000).
•BOS is the simultaneous pursuit of differentiation and low
cost.
•The aim of BOS is not to out-perform the competition in the
existing industry, but to create new market space or a blue
ocean, thereby making the competition irrelevant.
•BOS covers both strategy formulation and strategy execution.
•The three key conceptual building blocks of BOS are: value
innovation, tipping point leadership, and fair process.

5. Compete in existing market space Create uncontested market space
Beat the competition Make competition irrelevant
Exploit existing demand Create and capture new demand
Make the cost-trade-off Break the cost-trade-off
Align the whole system of a Align the whole system of a
company’s activities with its company’s activities in pursuit of
strategic choice of differentiation and low cost
differentiation or low cost

7. For blue ocean strategy formulation
•The Strategy Canvas
•The initial litmus test for BOS: focus,
•divergence, compelling tagline
•The Four Actions Framework
•Eliminate-Reduce-Raise-Create Grid
•The Six Paths Framework
•Buyer Utility Map
•Buyer Experience Cycle
•Price Corridor of the Mass model
•Four Steps of Visualizing Strategy
•Process Pioneer-Migrator-Settler Map
•Three Tiers of Noncustomers Framework
•The Sequence of Blue Ocean Strategy

8. •Overcome key organizational hurdles.
•Build execution into strategy