Blue Ocean Strategy Doug Hentges Austin Mapes David Murdock Cindal Peterson Molly Redden

 Reach beyond existing demand  Focus on existing customers  Drive for finer segmentation to accommodate buyer differences

 To maximize the size of their blue oceans, Companies need to take a reverse course  Look to non-customers rather than focusing on customers  Build on powerful commonalities in what buyers value instead of focusing on customer differences  This allows companies to reach beyond existing demand to unlock a mass of new customers that did not exist before.

 1 st tier- “soon to be customers”  People closest to your market  Minimally purchase an industry’s offerings out of necessity, but non-customers  2 nd tier- “refusing customers”  People who voted against buying the company’s products  3 rd tier- “unexplored customers”  People who are the most distant from your market  Non-customers who have never thought of your market’s offerings as an option

Your Market 1 st Tier 2 nd Tier 3 rd Tier

 Soon-to-be noncustomers  Minimal use of market  Look for better opportunity  Wait for new demand from the market

 British fast-food chain: looked for way to find demand from first-tier noncustomers  Offers restaurant quality sandwiches at very fast speed  Sleek setting  Reasonable price

 Refusing noncustomers  JCDecaux  Creating value for everyone

 Farthest away from an industry’s existing customers  Unexplored Customers  Never thought of your market’s offerings as an option

 Teeth Whitening  Provided by dentists  Branched out into areas not formally marketed to  Created a new niche market  Reached unforeseen customers

 Focus on the tier with the biggest catchment  You may want to look across tiers  Challenge existing strategic orientations  Be aware of competitors

 There are 3 tiers of noncustomers  1 st tier or “Soon to Be”: Do not buy out of necessity  2 nd tier or “Refusing”: Do not buy industry offerings at all  3 rd tier “Unexplored”: Never considered your industry offerings  You must profit from the blue ocean you are creating not just maximize the size