BOS: Reconstruct Market Boundaries Bailey Anderson, Angela Chavez, Tucker DeVinny

Six Path Framework Look Across Alternative Industries Look Across Strategic Groups Within Industries Look Across the Chain of Buyers Look Across Complementary Product and Service Offerings Look Across Functional or Emotional Appeal to Buyers Look Across Time

Path 1: Alternative Industries Blue ocean strategy focuses on looking at alternative industries as opposed to just rivals within the current industry American airlines can capitalize on this strategy by scoping out other modes or transportations such as charter bus transportation and trains.

Path 2: Strategic Groups in Industry Strategic groups are defined as a cluster of companies in a specific industry who have a similar strategy to follow. Strategic groups can be formed based on levels of price and performance (Luxury brands competing while economic brands compete) American Airlines competes with Delta, JetBlue, and Southwest at a similar price range. Ultra-Low Cost Carriers (LCCs) like Spirit, Allegiant, and Frontier compete with each other at a much lower price point.

Path 3: The Chain of Buyers Purchasers: Office Equipment Industry Users: Clothing Industry Influencers: Pharmaceutical Industry Target different customer segments Large vs. Small

Path 4: Complementary Product and Service Offerings Untapped value is hidden in complimentary products and services Look at the process before, during, and after the product is used Ex: A movie theater with a babysitting service

Path 5: Functional and Emotional Appeal to Buyers Functional Appeal Compete principally on price and function largely on calculations of utility Emotional Appeal Compete largely on feelings When companies challenge their functional- emotional orientation, they often find new market space Examples: QB (Quick Beauty) House, Cemex

Path 6: Time  Key insights to blue ocean strategies arise from how the trend will change value to customers and impact the company's business model Three critical principles to assessing trends Trends must be decisive to your business They must be irreversible  They must have a clear trajectory Example: iTunes

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