HBS Club Webinar Overview of Blue Ocean Strategy

HARVARD BUSINESS SCHOOL CLUB
OF WASHINGTON DC
ENTREPRENEURSHIP ROUNDTABLE
WEBINAR SERIES FOR NATIONAL
UNIVERSITY STARTUP COMPETITION
INTRODUCTION TO INNOVATIVE
STRATEGIES FOR ENTREPRENEURS SERIES
March 10, 2009 WEBINAR

THIS WEBINAR SERIES - OUR APPROACH
Our Objective:
• To make participants in the competition aware of
cutting edge approaches to conceiving and
launching new ventures
Our Target Audience:
• University researchers who are considering
launching new ventures
• Calendar:
– January 27/09: A presentation of Some Traditional Basic
Elements for Venture Development
– February 9/09: An Overview of Disruptive Innovation
Strategy
– Today/March 10/09: An Overview of Blue Ocean Strategy

TODAY’S SESSION
Blue Ocean Strategy:
This new thinking makes it possible for innovative
entrepreneurs to increase their chances for success and
the extent of potential success. It includes:
• Insights about the innovative positioning of new
ventures; and
• Tools to make it possible.
To help you:
• Modify your business model,
• Re-orient your product or service,
• Change the borders of your target market, and
• More effectively carry out your venture.

CUSTOMER ORIENTATION
• A distinctive aspect of Blue Ocean Strategy is
that:
• instead of looking to serve existing prime
customers in the existing market place,
- it is largely concerned with modifying a
product or service offering, and
- establishing new market space by targeting
dissatisfied customers and non-customers,
the potential customers for the new venture.

THE POTENTIAL IMPACT OF BLUE OCEAN
What interests me most about Blue Ocean is that it
gives you a path to find and implement a winning
formula for your business model:
• with improved understanding of the way that
markets work; along with
• methods of analysis, and tools for
strategy implementation

BLUE OCEAN BACKGROUND
• This discipline has been developed by W.Chan Kim and
Renée Mauborgne, professors at INSEAD, who are co-authors
of the book, Blue Ocean Strategy, and are co-directors
of the Blue Ocean Institute.
• Blue Ocean Strategy provides an approach to conceiving
ventures that allows you to reconfigure your product or
service offering and its market.
• The discipline began with the study of successful strategic
moves by many businesses in many different industries
over the years - everything from Henry Ford’s Model T to
the Cirque de Soleil.

THE KEY TO BLUE OCEAN STRATEGY
• Its principal objective is to make it possible to reconfigure and
implement a new business model in order:
• to leave a highly-contested market (a “Red Ocean” with blood in the
water); and
• create new market space without effective competition (a “Blue
Ocean”).
• The Blue Ocean approach makes use of a process called “value
innovation” in which you:
• look at the elements of a product or service offering on which ventures
in the industry compete, and
• determine elements that can be:
– Eliminated,
– Reduced,
– Improved, and
– Added

• Doing value innovation is not simple, but there is
an excellent systematic approach and there are
tools to help you:
• Modify your product/service offering;
• Change the market borders of your business
model; and
• Implement your strategy – with execution methods
to incorporate into it.

PRESENTERS
• Mario Castaneda Director of the Boston Office of
StratX (mario.castaneda@StratX.com)
• Marshall Maglothin, COO of Inpatient Specialists,
and President of Blue Oak Consulting
(mmaglothin@medaxiom.com)
• Bob Kolodney, serial entrepreneur and moderator
of the Entrepreneurship RoundTable of the
Harvard Business School Club of Washington, DC
(bobko@post.harvard.edu)

10
BLUE OCEAN STRATEGY
©
From www.StratX.com

Blue Ocean Strategy:
How to Create Uncontested Market Space and
Make the Competition Irrelevant

RESEARCHING THE HISTORY
OF BLUE OCEAN CREATION
• Data: 150 blue ocean creations, more than
30 industries, over 100 years (1880-2000)
• Hotel, cinema, retail, airline, energy, computer,
broadcasting, home construction, automobile, steel
manufacturing, chemicals, cosmetics, software, etc.
• Variables considered: industrial,
organizational, strategic
© Kim & Mauborgne 2005 – all rights reserved

Companies Have Achieved Substantially
Higher Returns from Investments in Blue Oceans
Business Launch
Revenue Impact
Profit Impact
Red Oceans
Market-Competing Business Launches
Blue Oceans
Market-Creating Business Launches
© Kim & Mauborgne. All Rights Reserved. 13

Industry History Teaches Us That:
Blue oceans are not about technology innovation per se
Incumbents often create blue oceans - and usually within
their core businesses
Company and industry are the wrong unit of analysis
Creating blue oceans builds brands
© Kim & Mauborgne. All Rights Reserved.

Red Ocean Versus Blue Ocean Strategy
Red Ocean Strategy Blue Ocean Strategy
Create uncontested market space
Compete in existing market space
Beat the competition
Exploit existing demand
Make the value-cost trade-off
Make the competition irrelevant
Create and capture new demand
Break the value-cost trade-off
Align the whole system of a firm’s
activities with its strategic choice of
differentiation or low cost
Align the whole system of a firm’s
activities with its strategic choice of
differentiation and low cost

Value Innovation:
The simultaneous pursuit of differentiation and low cost
Cost
Blue
Ocean
Strategy
Eliminate
Reduce
Raise
Create
Cost
Buyer Value
Value

VALUE INNOVATION
Value Innovation is the cornerstone of blue ocean strategy. Value
innovation is the simultaneous pursuit of differentiation and low cost.
Value innovation focuses on making the competition irrelevant by
creating a leap of value for buyers and for the company, thereby opening
up new and uncontested market space. 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.
In the Blue Ocean Strategy methodology, the Four Actions Framework
and ERRC grid assist managers in breaking 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?

Four Actions Framework
Reduce
Which factors should
be reduced well below
the industry’s
standard?
A
New
Value
Curve
Eliminate
W h ic h fa c tors that the
industry takes for
granted should be
eliminated ?
Raise
be raised well above
the industry’s
standard?
Create
be created that the
industry has never
offered?

FOUR ACTIONS FRAMEWORK
To reconstruct buyer value elements in crafting a new value
curve, we use the Four Actions Framework.
As shown in the diagram above, to break the trade-off
between differentiation and low cost and to create a new
value curve, there are four key questions to challenge an
industry's strategic logic and business model:
• Which of the factors that the industry takes for granted
should be eliminated?
• Which factors should be reduced well below the industry's
standard?
• Which factors should be raised well above the industry's
standard?
• Which factors should be created that the industry has never
offered? © Kim & Mauborgne 2005 – all rights reserved

ERRC Grid:
EElliimmiinnaattee RRaaiissee
Which factors can you
eliminate that your industry
has long competed on?
List those factors here…
Which factors should be
raised well above the
industry’s standard?
RReedduuccee CCrreeaattee
reduced below above the
industry’s standard?
created that the industry has
never offered?

ERRC GRID The Eliminate-Reduce-Raise-Create Grid (ERRC) is complementary to
the four actions framework. It pushes companies not only to ask all four
questions in the four actions framework but also to act on all four to
create a new value curve, essential for 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 and thereby lifting the cost structure and often over-engineering
products and services - a common plight in many
companies.
• It is easily understood by managers at any level, creating a high level of
engagement in its application.
• Because completing the grid is a challenging task, it drives companies
to robustly scrutinize every factor the industry competes on, making
them discover the range of implicit assumptions they make
unconsciously in competing. © Kim & Mauborgne 2005 – all rights reserved

THE STRATEGY CANVAS
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, and
the vertical axis captures the offering level that buyers receive across
all these key competing factors.
The strategy canvas serves two purposes:
• Firstly, it captures the current state of play in the known market
space. This allows you to understand where the competition is
currently investing and the factors that the industry competes on.
• Secondly, it propels you to action by reorienting your focus:
- from competitors to alternatives; and
- from customers to non customers 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.
As you can see on the diagram above, what makes a good value curve
is focus, divergence as well as a compelling tagline.

The US Wine Industry
Premium Wines
Budget Wines
hi
lo
offering level
Wine
range
Vineyard
prestige
and legacy
Aging
quality
Above-the-line
marketing
Price
Use of enological
terminology and
distinctions in wine
communication
Wine
complexity

Eliminate-Reduce-Raise-Create Grid:
[The case of yellow tail]
EElliimmiinnaattee RRaaiissee
Enological terminology
and distinctions
Aging qualities
Above-the-line marketing
Price versus budget wines
Retail store involvement
RReedduuccee CCrreeaattee
Wine complexity
Wine range
Vineyard prestige
Easy drinking
Ease of selection
Fun and adventure

Result: Strategy Canvas [of yellow tail]
Premium Wines
[yellow tail]
Budget Wines
Easy
drinking
Ease of
selection
Fun &
Adventure
hi
lo
offering level
Wine
range
Vineyard
prestige
and legacy
Aging
quality
Above-the-line
marketing
Price
Use of enological
terminology
and distinctions
in wine
communication
Wine
complexity

THREE TIERS OF NON-CUSTOMERS

THREE TIERS OF NON-CUSTOMERS
Typically, to grow their share of a market, companies strive to retain and
expand existing customers. 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. That
allows companies to reach beyond existing demand to unlock a new
mass of customers that did not exist before.
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.

THREE TIERS OF NON-CUSTOMERS- CONT
• There are three tiers of noncustomers that can be transformed into
customers. They differ in their relative distance from your market.
• The first tier of noncustomers is closest to your market. They sit on the
edge of the market. They are buyers who minimally purchase an
industry’s offering out of necessity but are mentally noncustomers of
the industry. They are waiting to jump ship and leave the industry as
soon as the opportunity presents itself. However, if offered a leap in
value, not only would they stay, but also their frequency of purchases
would multiply, unlocking enormous latent demand.
• The second tier of noncustomers is people who refuse to use your
industry’s offerings. These are buyers who have seen your industry’s
offerings as an option to fulfill their needs but have voted against
them.
• The third tier of noncustomers is farthest from your market. They are
noncustomers who have never thought of your market’s offerings as
an option.
By focusing on key commonalities across these noncustomers and
existing customers, companies can understand how to pull them into
their new market.

Six Paths to Blue Ocean Strategy
The Six Conventional Boundaries of Competition
To
Creating
Across
From
Competing
Within
Industry
Strategic group
Buyer group
Scope of product or service
offering
Functional-emotional
orientation of an industry
Time

6 PATHS: Allows Exploration Outside of
Traditional Boundaries
Path 1 - Industry
What are the alternative industries to your industry?
Why do buyers trade across to them?
NTT DoCoMo, Federal Express, Southwest Airlines, NetJets
Path 6 - Time
What trends have a high probability of impacting your industry, are
irreversible, and evolving in a clear trajectory? How will these
trends impact your industry? Given this, how can you open up
unprecedented customer utility?
Apple Music, Cisco Systems, CNN,
HBO’s “Sex and the City”
Path 2 – Strategic Group
What are the strategic groups in your industry?
Why do buyers trade up for the higher group, and why
do they trade down for the lower one?
Polo Ralph Lauren, Curves, Sony Walkman, Toyota Lexus
Path 3 - Buyer Group
What is the chain of buyers in your industry?
Which buyer group does your industry typically focus on?
If you shifted the buyer group of your industry,
how can you unlock new value?
Novo Nordisk, Bloomberg Terminals, Canon Copiers, Philips Alto
Path 4 - Scope of product or service offering
What is the context in which your product or service is used?
What happens before, during, and after? Can you identify the pain
points? How can you eliminate these pain points through a
complementary product or service offering?
Borders and Barnes & Noble, Dyson Vacuum Cleaners, Kinépolis
Kiné-kids, Zenick Salick’s Cancer Centers
Path 5 - Functional-emotional orientation of an industry
Does your industry focus on functionality or emotional appeal? If
you compete on emotional appeal, what elements can you strip out
to make it functional? If you compete on functionality, what
elements can be added to make it more emotional?
Starbucks, QB House, Direct Line Group, Pfizer’s Viagra

Sequence of
Blue Ocean
Strategy
e

PMS MAP

PMS MAP
A useful exercise for a corporate management team pursuing
profitable growth is to plot the company's current and planned
portfolios on the pioneer-migrator-settler (PMS) map.
For the purpose of the exercise, settlers are defined as me-too
businesses, migrators are business offerings better than most in the
marketplace, and a company's pioneers are the businesses that offer
unprecedented value.
These are your blue ocean strategies, and are the most powerful
sources of profitable growth. They are the only ones with a mass
following of customers.
If both the current portfolio and the planned offerings consist mainly
of settlers, the company has a low growth trajectory, is largely
confined to red oceans, and needs to push for value innovation.
Although the company might be profitable today as its settlers are
still making money, it may well have fallen into the trap of
competitive benchmarking, imitation, and intense price competition.

PMS MAP - CONT
If current and planned offerings consist of a lot of migrators, reasonable
growth can be expected. But the company is not exploiting its potential
for growth, and risks being marginalized by a company that value-innovates.
In our experience the more an industry is populated by
settlers, the greater the opportunity to value-innovate and create a blue
ocean of new market space.
This exercise is especially valuable for managers who want to see beyond
today's performance. Revenue, profitability, market share, and customer
satisfaction are all measures of a company's current position. Contrary to
what conventional strategic thinking suggests, those measures cannot
point the way to the future; changes in the environment are too rapid.
Today's market share is a reflection of how well a business has
performed historically.
Clearly, what companies should be doing is shifting the balance of their
future portfolio toward pioneers. That is the path to profitable growth.
The PMS map above depicts this trajectory, showing the scatter plot of a
company's portfolio of businesses, where the gravity of its current
portfolio of twelve businesses, expressed as twelve dots, shifts from a
preponderance of settlers to a stronger balance of migrators and
pioneers. © Kim & Mauborgne 2005 – all rights reserved

FOUR HURDLES TO STRATEGY EXECUTION

FOUR HURDLES TO STRATEGY EXECUTION
Once a company has developed a blue ocean strategy with a
profitable business model, it must execute it. The challenge of
execution exists, of course, for any strategy. Companies, like
individuals, often have a tough time translating thought into action
whether in red or blue oceans.
The challenges managers face are steep. They face four hurdles:
• A cognitive hurdle. waking up employees to the need for a
strategic shift. Red oceans may not be the paths to future
profitable growth, but they feel comfortable to people and may
have even served an organization well until now, so why rock the
boat?
• Limited resources. The greater the shift in strategy, the greater it is
assumed are the resources needed to execute it. But many
companies find resources in notoriously short supply
• Motivation. How do you motivate key players to move fast and
tenaciously to carry out a break from the status quo?
• Politics. As one manager put it, “In our organization you get shot
down before you stand up.”

FOUR HURDLES TO STRATEGY EXECUTION - CONT
Although all companies face different degrees of these hurdles, and many may
face only some subset of the four - knowing how to triumph over them is key to
attenuating organizational risk.
To achieve this effectively, however, companies must abandon perceived wisdom
on effecting change. Conventional wisdom asserts that the greater the change,
the greater the resources and Time you will need to bring about results.
Instead, you need to flip conventional wisdom on its head using what we
call tipping point leadership. Tipping point leadership allows you to overcome
these four hurdles fast and at low cost while winning employees’ backing in
executing a break from the status quo.
The key questions answered by tipping point leaders are as follows:
• What factors or acts exercise a disproportionately positive influence –
• On breaking the status quo?
• On getting the maximum bang out of each buck of resources?
• On motivating key players to aggressively move forward with change?
• On knocking down political roadblocks that often trip up even the best
strategies?
By single mindedly focusing on points of disproportionate influence, tipping point
leaders can topple the four hurdles that limit execution of blue ocean strategy.
They can do this fast and at low cost. © Kim & Mauborgne 2005 – all rights reserved

FAIR PROCESS
• Engagement
• Explanation
• Expectation
Clarity

FAIR PROCESS • Engagement
• Explanation
• Expectation
Clarity
What is fair process?
Fair process builds execution into strategy by
creating people's buy-in up front. When fair process is
exercised in the strategy making process, people trust
that a level playing field exists. This inspires them to
cooperate voluntarily in executing the resulting
strategic decisions.
There are three mutually reinforcing elements that
define fair process: engagement, explanation, and
clarity of expectation.
Whether people are senior executives or shop
employees, they all look to these elements. We call
them the three Ε principles of fair process.

FAIR PROCESS - CONT
• Engagement
• Explanation
• Expectation
Clarity
The Three Principles of Fair Process
Engagement
Engagement means involving individuals in the strategy decisions
that affect them by asking for their input and allowing them to refute
the merits of one another’s ideas and assumptions.
Encouraging refutation communicates management’s respect for
individuals and their ideas. Encouraging refutation sharpens
everyone’s thinking and builds better collective wisdom.
Engagement results in better strategic decisions by management and
greater commitment from all involved to execute those decisions

FAIR PROCESS - CONT
• Engagement
• Explanation
• Expectation
Clarity
Explanation
Explanation means that everyone involved and affected should
understand why final strategic decisions are made as they are.
An explanation of the thinking that underlies decisions makes people
confident that managers have considered their opinions and have
made decisions impartially in the overall interests of the company.
An explanation allows employees to trust managers’ intentions even
if their own ideas have been rejected. It also serves as a powerful
feedback loop that enhances learning.

FAIR PROCESS - CONT • Engagement
• Explanation
• Expectation
Clarity
Expectation Clarity
Expectation clarity requires that after a strategy is set, managers
state clearly the new rules of the game. Although expectations may
be demanding, employees should know up front what standards they
will be judged by and the penalties for failure.
When people clearly understand what is expected of them, political
jockeying and favoritism are minimized, and people can concentrate
on executing the strategy rapidly.
==========================================================================
Taken Together these criteria collectively lead to judgments of fair
process. This is important because any subset of the three does not
create judgments of fair process.

CONVENTIONAL WISDOM
VS
TIPPING POINT LEADERSHIP
The conventional theory of organizational change rests on
transforming the mass. So change efforts are focused on
moving the mass, requiring steep resources and long time
frames — luxuries few executives can afford.
Tipping point leadership, by contrast, takes a reverse course.
To change the mass it focuses on transforming the extremes:
the people, acts, and activities that exercise a
disproportionate influence on performance.
By transforming the extremes, tipping point leaders are able
to change the core fast and at low cost to execute their new
strategy.

TOOLS OF TIPPING POINT LEADERSHIP
In carrying out tipping point management, several
approaches help to make it happen:
• Providing first-hand experience of conditions and
problems
• Using a “Consigliore”
• Leveraging “Angels” and Silencing “Devils”
• Using “Kingpins”
• Using “Fishbowls”
• Identifying and Addressing Hot Spots and Cold Spots
• Horse-trading for Resources
• Atomizing

Minimizing Risks & Maximizing Opportunities
in Formulating and Executing Blue Ocean Strategy
Formulation Risks
Execution Risks
Formulation Principles
Reconstruct market boundaries
Focus on the big picture, not
the numbers
Execution Principles
Search Risk
Reach beyond existing demand
Get the strategic sequence right
Overcome key organizational
hurdles
Build execution into strategy
Planning Risk
Scale Risk
Business Model Risk
Organizational Risk
Management Risk

THE MAIN THINGS TO TAKE AWAY
FROM TODAY’ SESSION
Blue Ocean Strategy is a well-developed coherent Discipline with great potential
utility for Entrepreneurs
• It emphases the reconfiguration of business models;
• It concentrates on marginal customers and non-customers;
• Its Objective is to create new uncontested market space for a reoriented
product or service model
• It incorporates “Value Innovation”
• Value innovation involves four actions with respect to the elements of a
product offering on which an industry competes:
- Eliminate;
- Reduce
- Raise
- Create
• A Strategy Canvas shows a “Value Curve” - which should show focus,
differentiation and a compelling tag line;
• Your Blue Ocean Concept should be sequenced (Review: Buyer Utility, Pricing,
Cost, Adoption Hurdles to be addressed)
• Even a valid Blue Ocean Offering requires implementing change – which is
challenging – and the Blue Ocean Discipline has tools to facilitate this (e.g.
Fair Process, Tipping Point Management)

Q & A
……………
Wrap-up

SUPPLEMENTAL CONSIDERATIONS –
DRILLING DOWN
We have presented an overview of Blue Ocean
Strategy. You should be aware that the discipline
contains additional tools to help you carry out
various tasks.
Here is a thumbnail sketch of tools for developing
buyer utility and for doing strategic pricing – two
particularly difficult challenges for Entrepreneurs

BUYER UTILITY CYCLE – 6 UTILITY LEVERS
Consider The Six Stages of the Buyer Experience Cycle:
Purchase – >Delivery – > Use – > Supplements – >Maintenance – >Disposal
How long does
it take to find a
product you
need?
Is the place of
purchase
attractive and
accessible?
How secure is
the transaction
environment
How rapidly can
you make a
purchase?
How long does it
take to get the
product delivered?
How difficult is it to
unpack and install
the new product?
Do buyers have to
arrange delivery
themselves? If yes,
how costly and
difficult is this?
Does the product
require training
or expert
assistance?
Is the product
easy to store
when not in use?
How effective are
the product’s
features and
functions?
Does the product
or service deliver
far more power
or options than
required by the
average user? Is
it overcharged
with bells and
whistles?
Do you need other
products or
services to make
this product work?
If so, how costly are
they?
How much time do
they take?
How much pain do
they cause?
How easy are they
to obtain?
Does the
product
require
external
maintenance?
How easy is it
to maintain
and upgrade
the product?
How costly is
maintenance?
Does use of
the product
create waste
items?
How easy is it
to dispose of
the product?
Are there legal
or
environmental
issues in
disposing of
the product
safely?
How costly is
disposal?
© Kim & Mauborgne. All Rights Reserved
At each stage consider Six Utility Levers:
Customer Utility – Simplicity – Convenience – Risk Reduction – Fun/Image – Environmental Friendliness

Then use the Buyer Utility Map to find possible utility levers to use at
each stage of the Buyer Experience Cycle:
THE BUYER UTILITY MAP
Purchase Delivery Use Supplements Maintenance Disposal
Customer Productivity
Simplicity
Convenience
Risk Reduction
Fun/Image
Environmental
Friendliness

THEN UNCOVER (AND TRY TO RESOLVE)
THE BLOCKS
TO EACH POSSIBLE UTILITY LEVER
Purchase Delivery Use Supplements Maintenance Disposal
Customer Productivity In which stage are the biggest blocks to Customer Productivity?
Simplicity: In which stage are the biggest blocks to Simplicity?
Convenience: In which stage are the biggest blocks to Convenience?
Risk Reduction: In which stage are the biggest blocks to Risk Reduction?
Fun/Image: In which stage are the biggest blocks to Fun/Image?
Environmental
Friendliness: In which stage are the biggest blocks to Environmental
Friendliness?

IN DOING STRATEGIC PRICING
YOU CAN USE
THE PRICE CORRIDOR OF THE MASS
Step 1: Identify the price
Corridor of the mass
Three alternative product/service types:
Different form
Same Different form, and function,
form same function same objective
Size of circle is proportional to
number of buyers that product/service
attracts
Upper-level pricing
Mid-level pricing
Lower-level pricing
Step 2: Specify a price
level within the corridor
High degree of legal and resource
protection
Difficult to imitate
Some degree of legal and
resource protection
Low degree of legal and resource
protection
Price Corridor
of the Mass

DON’T FORGET ABOUT THE
IMPLEMENTATION TOOLS:
• BLUE OCEAN STRATEGY PROVIDES THE CONCEPTS AND TOOLS
TO CRAFT BUSINESS MODELS THAT HAVE A HIGH POTENTIAL FOR
SUCCESS.
• THE IMPLEMENTATION APPROACHES OF BOS ARE ALSO WELL
WORTH MASTERING FOR ENTREPRENEURS BECAUSE THEY DEAL
WITH CARRYING OUT CHANGE.
• THERE ARE POWERFUL PSYCHOLOGICAL AND HUMAN NATURE
FORCES BEHIND TIPPING POINT MANAGEMENT AND FAIR
PROCESS.
•USING THEM EFFECTIVELY CAN MAKE IT POSSIBLE:
- TO OVERCOME RESISTANCE;
- EXECUTE EFFECTIVELY WITH LIMITED RESOURCES;
- AVOID HALF-HEARTED EFFORTS; AND
- MAKE POSSIBLE TEAMWORK WITH THE FULL
ENTHUSIASM, ENERGY, RESOURCEFULNESS AND
INITIATIVE THAT MAKE THINGS HAPPEN.

THE MAIN THINGS TO TAKE AWAY
FROM THIS WEBINAR SERIES
• Entrepreneurship is challenging;
• The business plan is important and useful;
• Making adjustments as you go along is the key to real success.
• Entrepreneurship is not an ivory tower activity;
• Customers’ needs should be your needs;
• You need to learn how to sell;
• You need to know how to break-even, and you need to manage your
cash;
• You should be on the lookout for a winning formula for your business;
• Disruptive Innovation and Blue Ocean Strategy can help you improve
the likelihood and the extent of success for your venture;
• The needs of non-customers may be as important, or more important,
to you as existing customers of an industry;
• The insights and tools developed by Clayton Christensen, W. Chan
Kim, and Renée Mauborgne and their collaborators can make a big
difference to entrepreneurs, and we are all in their debt.

RESOURCES FOR THIS SESSION
• Overview information about Blue Ocean strategy at
www.blueoceanstrategy.com , particularly the diagrams in the BOS
tools section (found under “About Blue Ocean Strategy) and the
summaries (found under “Press Resources” and elsewhere)
• Book: Blue Ocean Strategy by W. Chan Kim and Renee Mauborgne –
Professors at INSEAD and Co-Directors of the Blue Ocean Institute
• Blue Ocean Simulation Software by StratX (www.stratx.com)
MOST OF THE MATERIALS FOR THIS
SESSION – INCLUDING ALL OF THE DIAGRAMS –
COME FROM THE BLUE OCEAN WEBSITE AND
BOOK.
WE THANK PROFESSORS KIM AND
MAUBORGNE FOR THEIR USE

RESOURCES FOR THIS WEBINAR SERIES
• Overall: Wiki Statement for the Entrepreneurship Round Table
Innovative Strategies for Entrepreneurs Best Practices Initiative –
posted at the website of the Harvard Business School Club of
Washington DC (www.hbsclubwdc.net) on the Entrepreneurship tab
• For the January 27 session: The materials at website of Steven Brandt,
www.scbrandt.com – particularly Entrepreneuring: The Ten
Commandments and Profit Mechanics (in the "Building a Business"
section;
• For the February 9 session: Various information on disruptive
innovation strategy at the Innosight website, www.innosight.com, and
the book, The Entrepreneur's Guide to Growth, (as well as The
Innovator's Dilemma, the Innovator’s Solution and Seeing What's Next)
• For the March 10 session: Overview information about Blue Ocean
strategy at www.blueoceanstrategy.com , particularly the diagrams in
the BOS tools section (under “About Blue Ocean Strategy”) and the
book, Blue Ocean Strategy, as well about Blue Ocean concepts,
simulation and certification at www.stratx.com

COMMUNICATIONS
• Mario Castaneda – mario.castaneda@StratX.com
• Marshall Maglothin – maglothin@medaxiom.com
• Bob Kolodney – bobko@post.harvard.edu

HBS Club Webinar Overview of Blue Ocean Strategy

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