What are the tools of blue ocean strategy?

Sequence of Blue Ocean Strategy Companies need to build their blue ocean strategy in the sequence of buyer utility, price, cost, and adoption. This allows them to build a viable business model.

What makes blue ocean strategy different from other strategies?

Chan Kim & Renée Mauborgne: Blue ocean strategy is about pursuing both differentiation and low cost. Differentiation is a strategic choice that reflects the value-cost trade-off in a given market structure. Blue ocean strategy, by contrast, is about breaking the value-cost trade-off to open up new market space.

How do we use blue ocean as a tool for strategy formulation?

The six paths framework in formulating blue ocean strategy are (1) Look across alternative industries, (2) Look across strategic groups within industry, (3)Look across buyer groups, (4) Look across complementary product and service offerings, (5)Look across the functional-emotional orientation of an industry and (5) …

What is blue ocean strategy Framework?

Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. It is based on the view that market boundaries and industry structure are not a given and can be reconstructed by the actions and beliefs of industry players.

What are the 4 steps in the blue ocean strategy process?

4-Step Blue Ocean Leadership Process

1. Step 1: See your leadership reality.
2. Step 2: Develop alternative Leadership Profiles.
3. Step 3: Select to-be Leadership Profiles.
4. Step 4: Institutionalize new leadership practices.

How do you do blue ocean strategy?

Five Steps to Making a Blue Ocean Shift

1. Select the right scope for your blue ocean initiative and build your people’s confidence.
2. Next, get super clear about the current state of play.
3. Identify the hidden constraints that you can turn into opportunities.
4. Go from the big picture to creating practical blue ocean options.

Is Netflix a blue ocean strategy?

Netflix. The first company that used the blue ocean strategy is Netflix, a popular subscription-based streaming service.

Does blue ocean strategy work?

In a study conducted by Mauborgne and Kim in the run-up to their book, however, they found that companies with a Blue Ocean Strategy were able to maintain their dominance in the new market for an average of 10 to 15 years.

Is Netflix a Blue Ocean Strategy?

How do you build a Blue Ocean Strategy?

How Do You Create a Blue Ocean?

1. Define the current reality.
2. Identify a segment of customers who are only interested in or find value in a portion of the features of a product or service.
3. Alter the product or service to be inferior on the aspects that are less valued by your new target audience.

Is Uber a blue ocean strategy?

Despite a long-term stronghold in the taxi industry, Uber has grown faster than any other company ever by reinventing the market. Uber created a blue ocean, they turned non-customers into customers. In blue oceans, demand is created rather than fought over. This provides growth that is both profitable and rapid.

How do you get a blue ocean strategy?

Who is the creator of the blue ocean strategy?

The Blue Ocean Strategy concept was introduced by Chan Kim. It suggests that an organization should create new demand in an uncontested market space, or a “Blue Ocean”, rather than “Red Ocean” competition head-to-head with other suppliers without differentiation.

Which is better competitive strategy or blue ocean strategy?

Traditional Competitive Strategy vs Blue Ocean Strategy ∗Competitive Advantage – Porter’s Five Forces ∗Blue Ocean Strategy is a: ∗Value Innovation Strategy – competes in an uncontested market space ∗“Combination Strategy ”: pursue differentiation while controlling costs.

What are the five forces of blue ocean strategy?

∗Competitive Advantage – Porter’s Five Forces ∗Blue Ocean Strategy is a: ∗Value Innovation Strategy – competes in an uncontested market space ∗“Combination Strategy ”: pursue differentiation while controlling costs. ∗Achieved via the delivery of features that have a highest marginal benefit to customer needs Blue Ocean Strategy vs.

Why is the Blue Ocean Idea Index important?

This is termed “value innovation.” You have a framework to test ideas. The Blue Ocean Idea Index is part of the overarching strategy and lets companies test the commercial viability of ideas. This process helps refine ideas and identify opportunities with the most potential, minimizing risk.