1. Kalie Marchington Jacey Guest Luke Burkett
Blue Oceans Strategy
Kalie Marchington
Jacey Guest
Luke Burkett

2. Quick Review Why it is important to create blue oceans
The analytical tools and frameworks needed to do that
How companies use those tools to reconstruct market boundaries

3. The Goal
How do you align your strategic planning to focus on the big picture and apply these ideas to drawing a strategic canvas and arrive at a blue ocean?

4. Typical Strategic Plan vs. a Strategic Canvas
TYPICAL STRATEGIC PLAN FOCUSES ON:
•How to create market share
•How to capture new segments
•Cutting costs
•Graphs and spreadsheets
Results:
•Conflicting agendas
•No clear picture
ADVANTAGES OF A STRATEGY CANVAS:
•Reveals blue oceans
•Is easy to communicate to the whole organization
•Looks to the future
•Is easy to execute

5. Focusing on the Big Picture
Strategic Canvas does these three things:
1.Depicts the factors (and future factors) that affect competition within the industry
2.Identifies current and potential competitors
3.Shows the company’s strategic profile (value curve)

6. Drawing your Strategic Canvas
Managers know how the company fairs along 1 or 2 dimensions but rarely see the overall dynamic of the whole industry
Ex. An airline catering manager knows how his/her airline compares to competitors in terms of refreshments but that may not be the most important factor to customers who look at many other factors the airline has to offer.

7. 4 Steps to Visualizing Strategy
Visual Awakening
Compare your business with competitors by drawing your “as is” strategy canvas
See where your strategy needs to change
Example: European Financial Services

8. EFS Strategy Canvas (Offline)

9. EFS Strategy Canvas (Online)

10. Step 2 2. Visual Exploration
Examine how people use or don’t use their products or services
Identify the array of complementary products and services that are consumed alongside your own
Look at how customers might find alternative ways of fulfilling the need that your product or service satisfies

11. Step 3 3. Visual Strategy Fair
Buyers from all markets have a basic set of needs and expect similar services
Created future distinctive need in the marketplace that is true and hidden

12. EFS: Before and After

13. The Case of EFS

14. Visual Communication
Clearly Communicate the strategy in a way that can be understood easily by employees.
Clear Graphics
Clear Work Outlines
Clear Goals

15. VIP Center
VIP Center - Suwon, South Korea: (Value Innovation Program) Unique meetings are held between different businesses where executives and company heads discuss their different long term strategies. The VIP Center produces on average 90 strategic plans a year. A team of innovative individuals helps push through all projects and helps keep teams focused.
Designers
Engineers
Programmers
Planners
Executives
A Strategy Canvas is a physical example of a business plan.

16. Pioneer-Migrator-Settler (PMS) Map
Pioneer - Business that offers unprecedented value.
Settlers - Business whose value curve conforms with the basic shape of the industry.
Migrators - Somewhere in the middle
The more settlers there are in a market, the better the opportunity to innovate and create value in the industry.
Value and Innovation are key parameters to follow when managing business decisions.

17. Overcoming Traditional Strategy Problems
The 4 step Process was created to solve this problem. If you learn and apply each step in the planning process, this will greatly improve your chances of creating a blue ocean.
Drawing a Strategy Plan or PMS is very effective. Although this step is not necessary to create a blue ocean, it sure can help your employees visualize the company goals. It is much easier to understand a plan once you have seen graphics based on the information.
Most managers are upset with the current system and feel there is a need for change in Strategic Planning. They are for a bottom-up or a top-down approach to planning and feel they don’t have enough power to influence the overall strategy.