blue ocean strategy -...

JANICZEK BLUE OCEAN STRATEGY WORKBOOK

BLUE OCEAN

STRATEGY

How to Create Uncontested Market Space

and Make the Competition Irrelevant

Blue Ocean Strategy Workbook

The Four Actions Framework p.29

Which of the factors that the industry takes for granted should be eliminated?

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Which factors should be reduced well below the industry's standard?

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Which standards should be raised well above the industry's standard?

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Which factors should be created that the industry has never offered?

Eliminate-Reduce-Raise-Create Grid

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Three Characteristics of a Good Strategy p.37

1. Focus




2. Divergence




3. Compelling Tagline



Reconstruct Market Boundaries p.49

Path 1: Look Across Alternative Industries

What are the alternative industries to your industry? Why do customers trade across them? By focusing on the key factors that lead buyers to trade across alternative industries and eliminating or reducing everything else, you can create a blue ocean of new market space.




Path 2: Look Across Strategic Groups Within Industries

What are the strategic groups in your industry? Why do customers trade up for the higher group, and why do they trade down for the lower one?




Path 3: Look Across the Chain of Buyers

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 could you unlock new value?




Path 4: Look Across Complementary Product and Service Offerings

What is the context in which your product or service is issued? 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?




Path 5: Look Across Functional or Emotional Appeal to Buyers

Does your industry compete 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 emotional?




Path 6: Look Across Time

What trends have a high probability of impacting your industry, are irreversible, and are evolving in a clear trajectory? How will these trends impact your industry? Given this, how can you open up unprecedented customer utility?



Focus on the Big Picture, Not the Numbers p. 81

The Four Steps of Visualizing Strategy 1. Visual Awakening Compare your business with your competitors' by drawing your "as i s " strategy canvas. See where your strategy needs to change.




The Four Steps of Visualizing Strategy 2. Visual Exploration Go into 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.




The Four Steps of Visualizing Strategy 3. Visual Strategy Fair Draw your " to be" strategy canvas based on insights from field observations. Get feedback on alternative strategy canvases from customers, competitors' customers, and non-customers. Use feedback to build the best " to be" future strategy.




The Four Steps of Visualizing Strategy 4. Visual Communication 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 gaps to actualize the new strategy.



Reach Beyond Existing Demand p.101

Three Tiers of Non-customers First Tier: "Soon-to-be" non-customers who are on the edge of your market, waiting to jump ship.




Three Tiers of Non-customers Second Tier: "Refusing" non-customers who consciously choose against your market.




Three Tiers of Non-customers Third Tier: "Unexplored" non-customers who are in markets distant from yours.



Get the Strategic Sequence Right p.117

1. Buyer Utility

The starting point is buyer utility. Does your offering unlock exceptional utility? Is there a compelling reason for the mass of people to buy it? Absent this, there is no blue ocean potential to begin with. Here there are only two options. Park the idea, or rethink it until you reach an affirmative answer.




2. Price

When you clear the exceptional utility bar, you advance to the second step: setting the right strategic price. Remember, a company does not want to rely solely on price to create demand. The key question here is this: Is your offering priced to attract the mass of target buyers so that they have a compelling ability to pay for your offering? If it is not, they cannot buy it. Nor wil l the offering create irresistible market buzz.




3. Cost

Can you produce your offering at the target cost and still earn a healthy profit margin? Can you profit at the strategic price—the price easily accessible to the mass of target buyers?




4. Adoption

What are the adoption hurdles in rolling out your idea? Have you addressed these up front? The formulation of blue ocean strategy is complete only when you can address adoption hurdles in the beginning to ensure the successful actualization of your idea.


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