Tuesday, July 21, 2009

Nine Key Points of Blue Ocean Strategy (BOS) from www.blueoceanstrategy.com

Nine Key Points of Blue Ocean Strategy (BOS)

I am often asked what is Blue Ocean Strategy or what is a Blue Ocean Strategist. The most effective way to explain this is to take you directly to the source at www.blueoceanstrategy.com and offer the following nine key points of Blue Ocean Strategy. If you have not bought the book, do so. If you would like to understand how to create a blue ocean for your business contact me.

  • BOS is the result of a decade-long study of 150 strategic moves spanning more than 30 industries over 100 years (1880-2000).

  • BOS is the simultaneous pursuit of differentiation and low cost.

  • The aim of BOS is not to out-perform the competition in the existing industry, but to create new market space or a blue ocean, thereby making the competition irrelevant.

  • BOS offers a set of methodologies and tools to create new market space.

  • While innovation has been seen as a random/experimental process where entrepreneurs and spin-offs are the primary drivers - as argued by Schumpeter and his followers - BOS offers systematic and reproducible methodologies and processes in pursuit of innovation by both new and existing firms.

  • BOS frameworks and tools include: strategy canvas, value curve, four actions framework, six paths, buyer experience cycle, buyer utility map, and blue ocean idea index.

  • These frameworks and tools are designed to be visual in order to not only effectively build the collective wisdom of the company but also to effectively execute through easy communication.

  • BOS covers both strategy formulation and strategy execution.

  • The three key conceptual building blocks of BOS are: value innovation, tipping point leadership, and fair process.

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