Blue Ocean Strategy - a review of online information, some of this may be subject to copyright.

Nick, Dan Jo Mike Lorrin Sarah All presentation on each other’s business thoughts (everyone has a copy of each others) Steve to present background to Blue Ocean inc. zero sum game, value vs cost Read prep sheets (I’ll give you these when you arrive) All fill in own value vs cost sheet, draw arrow to Blue Ocean Lorrin explain strategy canvas, work in pairs to create own strategy canvases (as is) Steve to describe 6-path framework, work in pairs to discuss possible new blue oceans and summarise in table Mike to describe ERRC grid, work in pairs to fill in ERRC grid for own business Sarah to describe three tiers of customers, work in pairs to describe three tiers of customers for your business All to consider new value curves and summarise on ipad app Steve to present on next steps, open discussion on how to progress

W. Chan Kim & Renee Mauborgne Studied business launches across 108 companies. 86% were incremental improvements within the existing market place, giving 62% of total revenues and 39% of total profits. 92 launches = 39% profit 14% were aimed at creating new blue oceans. These accounted for 38% of total revenues and 61% of total profits. 16 launches = 61% profit

Yuk!

Traditional strategy – win market share Assess value vs cost High Value Low High Low Cost

Traditional strategy – win market share Where are your competitors? High Value Low High Low Cost

Traditional strategy – win market share, military approach, zero sum game. Assess value vs cost High Blue Ocean Value Low High Low Cost

Structuring the development of a Blue Ocean strategy

1. Understand where you are now 2. Explore your market boundaries 3. Develop your strategy 4. Consider your implementation 5. Launch your strategy

Phase 1 – understand where you are now

Phase 2 – Explore your market boundaries

Phase 3 – Develop your strategy

What are the commonalities across your non-customers?

Apply the Four-Action Framework

Phase 4 – Consider your implementation

Phase 5 – Launch your strategy

Appendix

Buyer Utility Map

Value innovation Value improvements Value imitation

Value innovation Value improvements Value imitation