blueoceanstrategysummary.pptVIP

Value Innovation Value Innovation Red Ocean Versus Blue Ocean Startegy Red Ocean Versus Blue Ocean Strategy The Six Principles of Blue Ocean Strategy The Six Principles of Blue Ocean Strategy Strategy Canvas Strategy Canvas Four Actions Framework + Eliminate/Reduce/Raise/Create Grid Four Actions Framework + Eliminate/Reduce/Raise/Create Grid Four Steps of Visualizing Strategy Four Steps of Visualizing Strategy Pioneer, Settler, Migrator Map Pioneer, Settler, Migrator Map Three Tiers of Noncustomers Three Tiers of Noncustomers Sequence of Blue Ocean Strategy Sequence of Blue Ocean Strategy Buyer Utility Map Buyer Utility Map Buyer Experience Cycle Buyer Experience Cycle Uncovering Blocks to Buyer Utility Uncovering Blocks to Buyer Utility Price Corridor of the Mass Price Corridor of the Mass Profit Model of Blue Ocean Strategy Profit Model of Blue Ocean Strategy Blue Ocean Idea Index Blue Ocean Idea Index * * * By: W. Chan Kim Renee Mauborgne Summary by: Jesse Starmer COM 459 Value innovation is created in the region where a company’s actions favorably affect both its cost structure and its value proposition to buyers. Cost savings are made by eliminating and reducing the factors an industry competes on. Buyer value is lifted by raising and creating elements the industry has never offered. Over time, costs are reduced further as scale economies kick in due to the high sales volumes that superior value generates. Costs Buyer Value Value Innovation In the red ocean, differentiation costs because firms compete with the same best-practice principle. Here, the strategic choices for firms are to pursue either differentiation or low cost. In the reconstructionist world, however, the strategic aim is to create new best-practice rules by breaking the existing value-cost trade-off and thereby creating blue ocean. Align the whole system of a firm’s activities in pursuit of differentiation and low cost. Align the whole system of a firm’s activities with its strategic choic