Blue ocean strategy chapter summary
Blue ocean strategy chapter 6 summary
This effectively lowers fixed costs and increases marginal costs. By being held only once every 2 years, it avoids charity fatigue. Going through this process is very much detective work…treat it as such and don't get defensive. Price Is your price easily accessible to the target mass of buyers? The following questions may help: Is there someone else that could be partnered with? Faced with public humiliation, the courts backed down. Consider going from paid to freemium, like many software services. How can people's positive energy and contributions be multiplied? This changes the form of your target price to attract more customers. Adoption Have you addressed adoption hurdles up front? These are all important to developing a good working strategy canvas, and im gonna pass it on to….
Is the example company used in the book. Part Three: Executing Blue Ocean Strategy The final section of this Blue Ocean Strategy summary covers the common hurdles of executing your blue ocean idea, particularly in terms of breaking status quo bias and securing worker relations.
This could be the money holder, influencer, supplier, owner, maintainer, etc. Risk In which stage are the biggest blocks to risk? It prevents behind-the-door excuses, like blaming other managers for their shortcomings.
Convenience: What is the biggest block to convenience in each stage? Get reps from different departments to see all perspectives and build ownership.
Blue ocean strategy chapter 5
What does that mean? Southwest Airlines considered cheap car travel their alternative. Blue Ocean Strategy uses the charity Comic Relief as the example: Traditional charities run round-the-year marketing campaigns based on stimulating guilt and pity, in effect competing with each other in a red ocean. Always include price in for-profit situations. Market size monopoly barrier: A new entrant that quickly takes the share of the market may suck the air out of the room and make it difficult to sustain a competitor. The further removed a person is from the strategic planning process, the more scared they will be. Instead, make people see the reality firsthand. Do we see a link between the blocks to utility revealed in the buyer utility map and any of the three tiers? But the importance of the people proposition is less obvious, particularly for top-down managers, as employees and partners can sabotage the project without buy-in. Obviously this should be avoided. Environmental friendliness In which stage are the biggest blocks to environmental friendliness? Partnering also spurs competition to lower prices to win your contract. This changes the form of your target price to attract more customers.
Top Lessons Learned It's important to have a diverse team building the blue ocean strategy so that unique perspectives can be shared and that everyone is bought in at the end.
Which tier, if any, has the largest group of noncustomers that could potentially be unlocked with a reconstructed offering?
It also spawned the App Store increating an ecosystem of developers that further increased the value of its hardware products. By facilitating this trade, he gained credibility with both departments. Part 2: the five steps to making a blue ocean shift Get started The pioneer-migrator-settler map can be used to outline all current initiatives to plan the blue ocean shift.
Blue ocean strategy executive summary
Adoption Have you addressed adoption hurdles up front? Firsthand discovery happens when people use the tools themselves it does ownership and creativity, instead of receiving a directive from the ivory tower. The Model T was designed as a mass vehicle, sturdy and reliable rather than fashionable. Comic Relief instead holds a biennial event, Red Nose Day, during which you can purchase a red foam nose costing a pound; sponsor silly challenges for friends like staying quiet for 24 hours ; and watch the televised event featuring celebrity performers. Instead, a new value frontier must be introduced. Consider going from paid to freemium, like many software services. Employees They fear for their jobs and responsibilities. Have too much to read? It can be a powerful driver to create a tagline to go with the new strategy, this can help guide development efforts. Economy of scale barrier: High volume can lead to cost advantages that raise financial barriers. Atomize the goals. For instance, pricing at a luxury level may increase value per customer, but this may not compensate for a drop in volume. Blue Ocean Strategy argues for a more targeted method, to focus your limited resources on the areas of greatest disproportionate leverage.
In reality Napster may have paved the way for iTunes, after showing the labels what the Internet would inevitably do.
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