BOS ch 2 ppt fine

8/4/2019 BOS ch 2 ppt fine

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Blue Ocean StrategyPresented by: Harvia Coelho 38


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Blue Ocean Strategy

Chapter 1:

Creating Blue Oceans


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Blue Ocean Strategy

Chapter 2:

Analytical Tools and Frameworks


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The Strategy Canvas

Diagnostic and Action Framework for building a compelling blue oceanstrategy

It compares core

competencies for

competition and

their level of

importance for eachplayer in the market.


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The Strategy Canvas

Diagnostic and Action Framework for building

a compelling blue ocean strategy

It compares core competencies for competitionand their level of importance for each player in

the market


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How to use it in BOS?

Dont: Offer a little more for a little less

Do: Reorient strategic focus from

competitors to alternatives and from

customers to noncustomers of theindustry


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The Four Actions Framework

A New

Value

Curve

1. Eliminate

Which factors that the

industry takes for

granted should be

eliminated?

4. Create

Which factors should be

created that the

industry has not seen

before?

3. Raise


raised well above the

industry standard?

2. Reduce


reduced well below the

industry standard?


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1. Eliminate (competition)

Factors your industry competes on

Change in what buyers value

1. Reduce (competition)

Overdesigned products

Over served customers


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3. Raise (customers)

Eliminate compromises4. Create (customers)

New sources of value

New demand


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McDonalds Framework Create New Sources of Value:

Brand

customer care

cost structure its patent

target audience

Sustainable the key test of a core competency measures the

ability of a firm to continually increase the advantage of thecompetency over many years.

The world has changed. Our customers have

changed. We have to change too."


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Eliminate-Reduce-Raise-Create Grid

Figure 2-5: The Case of McDonalds

Eliminate

Super Size Option

Raise

Health Standards

Reduce

Calories in burgers

Create

Salad Menu


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Characteristics of a Good Strategy

Focus

Divergence Compelling Tagline


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FOCUS

Identify key factors of competition

EX. Quality, speed, price, inovation..

Choose one factor

Focus on that one factor


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Divergence

Value curve of BOS stands a apart

Differentiate the profiles from average profiles

Make changes to the way things done in the industry.

Ex. Southwest Airline


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Compelling Tagline

The speed of a plane at the price of a carwhenever

you need it.

What is a tagline?

A short descriptive phrase

Tagline should be

Short and Clear

Truthful

Updated

Ex. I'm lovin' it replacing "We love to see you

smile."


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Reading the Value Curves

A Blue Ocean Strategy

A Company Caught in the Red Ocean

Over delivery Without Payback An Incoherent Strategy

Strategic Contradictions

An Internally Driven Company


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The Strategy Canvas


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Thank you

Documents

BOS ch 2 ppt fine