Blue Ocean Strategy How to create uncontested market space and make the competition irrelevant Chapter#5: Reach Beyond Existing Demand Kelompok-6 Aditya Sidi Dharma Setiawan Golda Indrawani

Blue Ocean Strategy Go where the profits and growth are - and where the competition isn’t W. Chan Kim & Renée Mauborgne

BOS Logic: The Core Principles Reconstruct Market Boundaries … overcome believes. Reach beyond existing Demand … go for uncontested space. Get the strategic sequence right … value [innovation] first. VI COST VALUE

Reach beyond existing Demand This is the second principle of Blue Ocean Strategy, that is a key component of achieving value innovation. By achieve the greatest demand of aggregation for a new offering, companies should challenge two conventional strategy practices.  One is the focus on existing customers.  The other is the drive for finer segmentation to accommodate buyer differences. To maximize the size of blue oceans, companies need to take a reverse course.

BOS Logic: Reach beyond existing demand Core Customer Noncostumer Soon-to-be-NC Refusing Customer

Non-Customer -Instead of concentration on customers, they need to look to non-customers. -And instead of focusing on customer differences, they need to build on powerful commonalities in what buyers value, that allows companies to reach beyond existing demand to unlock a new mass of customers that did not exist before.

Three Types of Non-customer There are three types of noncustomer that can be transformed into customers. They differ in their relative distance from the market.  The first of noncustomers is closest to the market. They are buyers who nominally purchase an industry's offering out of necessity, but are mentally noncustomers of the industry.  The second type of noncustomers is people who refuse to use the industry's offerings. These are buyers who have seen the industry's offerings as an option to fulfill their needs but have voted against them.  The third type of noncustomers is farthest from the market. They are noncustomers who have never thought of the market´s offerings as an option. You must look at each of the three types of noncustomers to understand how you can attract them and expand the own blue ocean.