Group 4Melissa DunlopLaura RandallAlma PenaMona ShaferJose MedinaRaul Guerrero

Blue Ocean Strategy

How to Create Uncontested Market Space and Make the Competition Irrelevant

Brief OverviewPart 1-Blue Ocean Strategy

Value Innovation Strategy Canvas Four Actions Framework

Part 2- Formulating A Blue Ocean Strategy How to Reconstruct Market Boundaries Focus on the Big Picture Avoid Scale Risk When Crating Blue Oceans The 4-Step Model

Part 3- Executing A Blue Ocean Strategy Overcoming Organizational Hurdles Fair Process and Why it Matters When to Value-Innovate Again

Part 1: Blue Ocean Strategy

Don’t Compete with Rivals-Make them

Irrelevant

Why is this important? It is about strategy that

embraces the entire system of a company’s activities. It requires companies to orient the whole system toward achieving a LEAP in value for both buyers and themselves. Without this strategy innovation will remain divided from the core strategy

How can you use this?Redbox

Value Innovation

Buyer Value

CostsTakeaway 1: Value Innovation

Chapter 1

To fundamentally shift the strategy canvas of an industry, you must begin by reorienting your strategic focus from competitors to alternatives, and from customers to noncustomers of the industry Why is this important?

You gain insight into how to redefine the problem the industry focuses on and thereby reconstruct buyer value elements that reside across industry boundaries

How can you use this?

Takeaway 2: Strategy Canvas

Chapter 2

Why is this important? You gain insight

into how to drop your cost structure vis-à-vis competitors. You also gain insight into how to lift buyer value and create new demand.

How can you use this?

ReduceWhich factors should be, reduced well below the industry standard?

EliminateWhich factors that the industry takes for granted should be eliminated?

CreateWhich factors should be created that the industry has never offered?Raise

Which factors should be raised well above the industry’s standard?

A new Value Curve

Takeaway 3- Four Actions Framework

Part 2: Formulating a Blue Ocean Strategy

Chapter 3

1. Look Across Alternative Industries2. Looking Across Strategic Groups3. Look Across the Chain of Buyers4. Look Across Complementary Product and Service

offer5. Look Across Functional or Emotional Appeal to

Buyers6. Look Across Time

Takeaway 4 of Blue Ocean Strategy is to reconstruct market boundaries by looking systematically across different boundaries to break from the competition and create blue oceans, the chapter presents six paths in achieving this goal:

Chapter 4Takeaway 5: Focus on the Big Picture

Drawing a strategy canvas helps to chart a clear to follow, and achieve, strategy.

Chapter 4Takeaway 5: Focus on the Big Picture

Take into account the 4 steps of the Strategy Canvas

1. Visual Awakening2. Visual Exploration3. Visual Strategy4. Visual Communication

Chapter 4Takeaway 5: Focus on the Big Picture

Under Armour’s 2009 StrategyVisualized a needMade a changeCommunicated a message Assured clarity

Chapter 5

Noncustomers before customersCommonalities before differencesDe-segmentation before finer segmentation

Under Armour: Heat Gear, Cold Gear, All Season Gear

Takeaway 6: Avoid Scale Risk When Creating Blue Oceans.

Chapter 6

Buyer UtilityPriceCostAdoption

Under Armour's stance in the 4-Step Model

Takeaway 7: The 4-Step Model

Part 3: Executing a Blue Ocean Strategy

Chapter 7

Cognitive HurdlesMaking people see and experience the reality that needs to

be changed; both employees and customers Limited Resources

Know your hot spots and cold spots and any possibility of horse trading

Motivation HurdlesKnow your kingpinsEstablish fishbowl management

Political HurdlesAngels, devils, and your consigliere

Tipping Point Leadership vs. Conventional Wisdom

Takeaway 8: Overcoming Organizational Hurdles

Chapter 8

To gain the confidence and dedication of employees, who are employed lower down in the organization and to guarantee their cooperation, you must pay attention to the feasibility of the strategy from the beginning

Fair Process MethodSeek a win-win outcome for everyone

Takeaway 9: Fair Process & Why it Matters

Chapter 8

Build a culture of trust, commitment, and voluntary cooperation by using the 3 E-ProcessEngagementExplanationExpectation Clarity

Create a culture of Mutual RespectRecognition at emotional levelRecognition at intellectual level

Ex. Under Armour-MVP Lunches

Takeaway 9: Fair Process & Why it Matters

Chapter 9

Blue Ocean Strategy automatically creates barriers to imitation that will only be temporary

Confront the brutal fact of competitors catching up and when to tackle a new value innovationOne’s own value curve converges with one of the

competitionTry to swim the entire Blue Ocean

Takeaway 10: When to Value-Innovate Again

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