1. 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

2. 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

3. Part 1:
Blue
Ocean
Strategy

4. 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

5. 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?

6. 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?

7. Part 2: Formulating a Blue Ocean Strategy

8. 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

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

10. 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

11. 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

12. 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

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

14. Part 3: Executing
a Blue
Ocean
Strategy

15. 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

16. 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

17. 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

18. 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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