1. Introduction to BlueOcean Strategyderek hendrikz
2. Based on Blue Ocean Strategy, a book publishedin 2005 and
written by W. Chan Kim and ReneMauborgne, Professors at INSEAD and
Co-Directorsof the INSEAD Blue Ocean Strategy InstitutePresented
bywww.derekhendrikz.com 3. BOS definedThe avoidance of costly
competitionthrough innovation with the aim to createa market where
no firms currentlyoperate, leaving the company to expandwithout
competition.www.derekhendrikz.com 4. www.derekhendrikz.com 5.
www.derekhendrikz.com 6. www.derekhendrikz.com 7. BOS &
Strategic Positioningwww.derekhendrikz.com 8. Viewing the Cost /
Value Relationship as
Inversewww.derekhendrikz.comCostReductionValueIncrease Increase of
value impliesincrease of cost Reduction of cost impliesdecrease in
value 9. Viewing the Cost / Value Relationship as
Directwww.derekhendrikz.comCostReductionValueIncrease Both cost
reduction andvalue increase arepossible 10. www.derekhendrikz.com
11. www.derekhendrikz.comValue toCompanyValue
toCustomerEfficiencyBasedEffectivenessBased 12. Profit and Growth
Consequence of Creating BOSwww.derekhendrikz.com 13. Six Principles
of BOS Reconstruct market boundaries Focus on the big picture,
notthe numbers Reach beyond existing demand Get the strategic
sequence rightwww.derekhendrikz.comFormulationPrinciples Overcome
key organisationalhurdles Build execution into strategy
ExecutionPrinciples 14. 1. Reconstruct Market
Boundarieswww.derekhendrikz.com 15. 2. Focus on the Big Picture,
Not the Numbers Which factorsshould be createdthat the
industrynever offered?www.derekhendrikz.com Which factorsshould be
raisedwell above theindustry standard? Which factorsshould be
reducedwell below theindustry standard? Which of the factorsthat
the industrytakes for grantedshould beeliminated?Eliminate
ReduceRaise Create 16. www.derekhendrikz.comReduceA
NewValueCurveCreateRaiseEliminate 17. www.derekhendrikz.com3. Reach
Beyond Existing Demand 18. 4.Get the
StrategicSequenceRightwww.derekhendrikz.com 19. 5. Overcome Key
Organisational Hurdleswww.derekhendrikz.com 20.
www.derekhendrikz.com6. Build Execution into
StrategyExplanationEngagementExpectation Clarity 21.
www.derekhendrikz.comBOS Case StudiesCirque du Soleil:Blending of
opera and ballet with circus format while eliminating starperformer
and animals.Netjets:Fractional jet ownership.Southwest
Airlines:Offering flexibility of bus travel at the speed of air
travel using secondaryairports. 22. www.derekhendrikz.comBOS Case
Studies (cont)Curves:Redefining market boundaries between health
clubs and home exerciseprograms for women.Home Depot:Offering the
prices and range of lumberyard, while offering consumersclasses to
help them with DIY projects.Dyson:Cyclonic Vacuum Cleaners. 23.
www.derekhendrikz.comWorking with other BOS Tools 24.
www.derekhendrikz.comThe Strategy Canvas: Shows the strategic
profile of an industry by depicting very clearly thefactors that
affect competition among industry players, as well as thosethat
might in the future. Shows the strategic profile of current and
potential competitors,identifying which factors they invest in
strategically. Draws the companys strategic profile, or value
curve, showing how itinvests in the factors of competition and how
it might invest in them inthe future. The horizontal axis lists
factors of competition for the industry. The vertical axis
indicates the degree to which industry players and theproviders of
alternative services invest in the competitive factors. 25.
www.derekhendrikz.comStrategy Canvas for Cirque du Soleil 26.
www.derekhendrikz.comThe PMS Grid: 27. www.derekhendrikz.comPMS
Grid Sample 28. The Buyer Experience Cycle / Buyer Utility
Mapwww.derekhendrikz.com(BEC / BUM) Framework 29.
www.derekhendrikz.com 30. www.derekhendrikz.comTipping Point
Leadership
