Blue Ocean Strategy How to Create Uncontested Market Space and Make the Competition Irrelevant Group 4 Melissa Dunlop Laura Randall Alma Pena Mona Shafer Jose Medina Raul Guerrero

Brief Overview Part 1-Blue Ocean Strategy Value Innovation Strategy Canvas Four Actions Framework Part 2- Formulating A Blue Ocean Strategy How to Reconstruct Market Boundaries Focus on the Big Picture Avoid Scale Risk When Crating Blue Oceans The 4-Step Model Part 3- Executing A Blue Ocean Strategy Overcoming Organizational Hurdles Fair Process and Why it Matters When to Value-Innovate Again

Part 1: Blue Ocean Strategy

Don’t Compete with Rivals-Make them Irrelevant Takeaway 1: Value Innovation Costs Why is this important? It is about strategy that embraces the entire system of a company’s activities. It requires companies to orient the whole system toward achieving a LEAP in value for both buyers and themselves. Without this strategy innovation will remain divided from the core strategy How can you use this? Redbox Value Innovation Buyer Value

Chapter 1 Takeaway 2: Strategy Canvas To fundamentally shift the strategy canvas of an industry, you must begin by reorienting your strategic focus from competitors to alternatives, and from customers to noncustomers of the industry Why is this important? You gain insight into how to redefine the problem the industry focuses on and thereby reconstruct buyer value elements that reside across industry boundaries How can you use this?

Chapter 2 Takeaway 3- Four Actions Framework Why is this important? Reduce Which factors should be, reduced well below the industry standard? Why is this important? You gain insight into how to drop your cost structure vis-à-vis competitors. You also gain insight into how to lift buyer value and create new demand. How can you use this? Eliminate Which factors that the industry takes for granted should be eliminated? Create Which factors should be created that the industry has never offered? A new Value Curve Raise Which factors should be raised well above the industry’s standard?

Part 2: Formulating a Blue Ocean Strategy

Chapter 3 Look Across Alternative Industries Takeaway 4 of Blue Ocean Strategy is to reconstruct market boundaries by looking systematically across different boundaries to break from the competition and create blue oceans, the chapter presents six paths in achieving this goal: Look Across Alternative Industries Looking Across Strategic Groups Look Across the Chain of Buyers Look Across Complementary Product and Service offer Look Across Functional or Emotional Appeal to Buyers Look Across Time

Chapter 4 Takeaway 5: Focus on the Big Picture Drawing a strategy canvas helps to chart a clear to follow, and achieve, strategy.

Chapter 4 Takeaway 5: Focus on the Big Picture Take into account the 4 steps of the Strategy Canvas Visual Awakening Visual Exploration Visual Strategy Visual Communication

Chapter 4 Takeaway 5: Focus on the Big Picture Under Armour’s 2009 Strategy Visualized a need Made a change Communicated a message Assured clarity

Chapter 5 Takeaway 6: Avoid Scale Risk When Creating Blue Oceans. Noncustomers before customers Commonalities before differences De-segmentation before finer segmentation Under Armour: Heat Gear, Cold Gear, All Season Gear

Chapter 6 Takeaway 7: The 4-Step Model Buyer Utility Price Cost Adoption Under Armour's stance in the 4-Step Model

Part 3: Executing a Blue Ocean Strategy

Chapter 7 Takeaway 8: Overcoming Organizational Hurdles Cognitive Hurdles Making people see and experience the reality that needs to be changed; both employees and customers Limited Resources Know your hot spots and cold spots and any possibility of horse trading Motivation Hurdles Know your kingpins Establish fishbowl management Political Hurdles Angels, devils, and your consigliere Tipping Point Leadership vs. Conventional Wisdom

Chapter 8 Takeaway 9: Fair Process & Why it Matters To gain the confidence and dedication of employees, who are employed lower down in the organization and to guarantee their cooperation, you must pay attention to the feasibility of the strategy from the beginning Fair Process Method Seek a win-win outcome for everyone

Chapter 8 Takeaway 9: Fair Process & Why it Matters Build a culture of trust, commitment, and voluntary cooperation by using the 3 E-Process Engagement Explanation Expectation Clarity Create a culture of Mutual Respect Recognition at emotional level Recognition at intellectual level Ex. Under Armour-MVP Lunches

Chapter 9 Takeaway 10: When to Value-Innovate Again Blue Ocean Strategy automatically creates barriers to imitation that will only be temporary Confront the brutal fact of competitors catching up and when to tackle a new value innovation One’s own value curve converges with one of the competition Try to swim the entire Blue Ocean

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