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Blue Ocean Strategy. Chapter 3: Reconstruct Market Boundaries Group 4. 6 Paths Framework. Look across: Alternative Industries Strategic Groups Chain of Buyers Complementary Product Offerings Functional/Emotional Appeal Time. Path 1: Alternative Industries.

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Presentation Transcript
blue ocean strategy

Blue Ocean Strategy

Chapter 3: Reconstruct Market Boundaries

Group 4

6 paths framework
6 Paths Framework
  • Look across:
    • Alternative Industries
    • Strategic Groups
    • Chain of Buyers
    • Complementary Product Offerings
    • Functional/Emotional Appeal
    • Time
path 1 alternative industries
Path 1: Alternative Industries
  • Compete with alternative products/services
path 2 strategic groups i n industries
Path 2: Strategic Groups in Industries
  • Unlock blue oceans
  • Strategic groups: companies within industries
red bull example1
Red Bull Example
  • Red Bull Cola
path 3 chain of buyers
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
path 4 complimentary product offerings
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
path 5 look across functional or emotional appeal to buyers
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
functional and emotional appeal
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
red bull s emotional appeal
Red Bull’s Emotional Appeal
  • Blue Ocean
  • Brand idea
    • Lifestyle
    • Sports
    • Nightlife
    • Youth
path 6 look across time
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.
look across time
Look Across Time
  • Opportunity for Blue Oceans
    • Future Telling?
    • Systematic Approach
      • Decisive
      • Irreversible
      • Clear Trajectory
  • Example: Apple and Sex and the City
red bull s look across time
Red Bull’s Look Across Time
  • Social Media Explosion
    • Cohesive with brand image and target market
  • Facebook
    • 22 million “likes”
  • Twitter
    • 729,000 followers
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