1. Chapter 3: Reconstruct Market Boundaries Group 4
Blue Ocean Strategy
Chapter 3: Reconstruct Market Boundaries
Group 4

2. 6 Paths Framework Look across: Alternative Industries Strategic Groups
Chain of Buyers
Complementary Product Offerings
Functional/Emotional Appeal
Time

3. Path 1: Alternative Industries
Compete with alternative products/services

4. Red Bull Example
VS.

5. Path 2: Strategic Groups in Industries
Unlock blue oceans
Strategic groups: companies within industries

6. Red Bull Example
Red Bull Cola

7. Path 3: Chain of Buyers Industries tend to focus on one group
Retailers
Purchasers
Consumers
Can create blue ocean by switching the norm.
Novo Nordisk

8. Path 4:Complimentary Product Offerings
Products value are affected by other products that are outside the industry focus.
Movie Theaters
Buses
5 Hour Energy vs. Red Bull Energy Shots

9. Path 5:Look Across Functional or Emotional Appeal to Buyers
Functional and emotional appeals are embedded
Functional- compete on price and function
Emotional- compete on feelings of products/services
Opportunity for Blue Ocean
Companies and industries are normally embedded in either emotional or functional appeal.

10. Functional and Emotional Appeal
How separate from a functional red ocean?
Example: Starbucks and Cemex
How to separate from a emotional red ocean?
Example: QB House

11. Red Bull’s Emotional Appeal
Blue Ocean
Brand idea
Lifestyle
Sports
Nightlife
Youth

12. Path 6: Look Across Time External trends affect companies
Most act passively and adapt incrementally
Trends that have affected companies
Example: internet and protecting the environment.

13. Look Across Time Opportunity for Blue Oceans
Future Telling?
Systematic Approach
Decisive
Irreversible
Clear Trajectory
Example: Apple and Sex and the City

14. Red Bull’s Look Across Time
Social Media Explosion
Cohesive with brand image and target market
Facebook
22 million “likes”
Twitter
729,000 followers