TEAM 1 Kelsey Combest Katie Ficken Ryan Lacy

“Creating blue oceans is not a static achievement but a dynamic process. Once a company creates a blue ocean and its powerful performance consequences are known, sooner or later imitators appear on the horizon. The question is, how easy or difficult is your blue ocean strategy to imitate?”

A value innovation does not make sense based on conventional strategic logic. Brand image conflict can prevent companies from attempting to imitate a blue ocean strategy Natural monopoly can block imitation if the size of the market cannot support another player Copyrights, patents or other legal blocks are in place

The high volume generated by a large value innovation leads to rapid cost advantages, placing potential imitators at a sever disadvantage Network externalities. The more customers you have the more attractive you become Because imitation often requires companies to make substantial changes to their existing business practices A huge leap in value often earns brand buzz and a loyal following in the marketplace

Monitor value curves on strategy canvas and dominate the blue ocean as long as possible Hold on when there is still a huge profit stream to be collected from your current offerings. Focus on lengthening, widening and deepening your rent stream to operational improvements and geographic expansion to achieve maximum economies of scale and market coverage. Reach out for another blue ocean when your value curve begins to converge with those of the competition.

A blue ocean strategy brings with it considerable barriers to imitation. Some of these are operational, and others are cognitive. When imitators persist, monitor value curves and focus on lengthening, widening, and deepening your share through operational and geographical expansion until value-innovation is your last resort. DON’T DO DRUGS.