Read the full comprehensive summary at Shortform.
Blue ocean strategy pushes companies to create new industries and break away from the competition. In a very competitive circus industry, Cirque du Soleil was a blue ocean. It created a new theatrical show that combined the acrobatics with a premium theater experience. In so doing:. All blue ocean strategies do something similar. They define a new value curve that creates more customer value at lower cost. Blue ocean strategies can be depicted on a strategy canvaswhich shows how your offering and competing offerings stack up along a range of factors.
The book offers several strategies. Use these as inspiration to develop multiple strategic canvases around different product offerings. Then test these with customers and your organization to figure out which ideas are leaders. Unlock the full book summary of Blue Ocean Strategy by signing up for Shortform.
In these red oceans, market structures are known, and companies try to outperform rivals to grab share of existing demand. Over time, markets become crowded, products become commodities competing on price, and profits dissipate.
This trend is aggravated by technological improvements that allow incredible creation of supply that can outstrip demand, causing further price competition. In contrast, blue ocean strategy creates new market spaces, creates new demandand leads to profitable growth. Here, the market structure is yet to be decided, so the price competition is far less intense.
In other words, a blue ocean is a new, uncontested market space where the existing competition is irrelevant. In their analysis of strategic moves over years, the authors found a consistent pattern to successful blue ocean strategies: value innovation.
In contrast, value innovation simultaneously improves its cost structure and its value to buyers. A blue ocean strategy reduces costs by reducing features or services that are competed over, but are not important to buyers.
It then raises buyer value by creating new features or services the buyer wants. While this came in Appendix A in the book, this is a good time to cover three industries with repeated blue ocean creation. Each industry underwent continuous upheaval, each time spurred by a blue ocean strategy that 1 reduced factors unimportant to buyers, 2 increased factors important to buyers, 3 expanded the market.
In contrast, breaking new ground with creative blue ocean ideas is relatively risky. Blue Ocean Strategy introduces analytical tools to minimize risk. The strategy canvas visualizes the current state of the industry and shows how a blue ocean strategy differs from incumbents. It plots two axes:. The strategy canvas makes this clear.
Notice how smaller regional circuses are simply lower-cost imitations of the big names. Smaller circuses compete largely on the same dimensions, but executes less well and commands a lower price.
This strategy canvas clearly shows how Cirque du Soleil offered superior customer value while lowering certain costs.Hr policies and practices ppt
When you plot your strategy canvas, there are two warning signs of bad strategies :. This is the best summary of Blue Ocean Strategy I've ever read. I learned all the main points in just 20 minutes. Try to create a new product offering that upends the conventional thinking of your industry.This blog article is part of a series on the book Blue Ocean Strategy by W.
In this article you will learn the plan they outline for how to make your competition irrelevant and have sales and profit growth in excess of anything you thought was even possible. Click the link above or the picture below to read more. If you have not read the first article in this series click here to go to the first article titled " Blue Ocean Strategy Summary ". The strategy canvas outlined in the book is basically a tool to visually show how a company will or has created a blue ocean strategy.
It is used to plot how the current competitors compete in a market space, what factors they compete on and how your company and the competition scores on each key factor.S10 blazer rear spoiler
It is also used to show how a company can change its focus to separate itself from the competition and attract non customers currently to the industry to become customers. It is a basic line chart with the competing factors along the x-axis and the offering level along the y-axis. See the chart below for an example. The example below shows how Netflix has created a Blue Ocean for them selves in the television program service market. A good example here is that Cirque du Soleil took out animals in their circus service offering because they were targeting adults, which animals performances are not important to creating entertainment for adults animals at circuses are mostly for the kids.
How to Use The Business Model Canvas for Innovation
By removing items from teh service you can reduce cost. In this step the book says you want to look to reduce features well below the industry standard to reduce cost that are still required by the market but not to the degree they are currently offered at.Oil refinery jobs in qatar
A great example of this is the Nintendo Wii, where they reduce the graphic processing power well below the other products on the market because for their target market children and the elderlytop notch graphics are not important the satisfaction level of game play.
Below average graphic processing with caricature images is much more appealing to that target. In this step the book suggests that you want to raise factors well above the industry standard to remove compromises the existing options force customers to make.
Apple is a great example of this as with the iPod they made it easier to have all your music on your computer and easily move it to your iPod if you wanted to take it on the go.
All of the other options to do this at the time were very cumbersome to do this. In this step the authors say to operate in a blue ocean, companies should look to create features that have never been offered before that would add value. A great example of this the Cirque du Soleil which added dance, songs and an original music score to the traditional circus. As a result this added value for adult women, which was part of their new target. The book suggests that to come up with ideas for how to construct a compelling strategy canvas you should look at 6 different areas.
The book suggests to that to reconstruct market boundaries you should look at what alternative industries buyers choose to purchase from and why they choose to purchase from them. These alternative industries are substitutes. For example instead of buying a dish washer they may choose to purchase soap and a dish washing tray. The book suggest focusing on what causes buyers to switch between substitutes and reduce or eliminate everything else.
The second boundary that should be analyzed is within an industry what are the different strategic buyer groups. For example a within the airfare market there would the the luxury airline travel, business level airline travel and economy airline travel. Look at who is all involved in the buying process and see if there is someone in the group that makes sense to focus on that the rest of the market is not.
For example in the buying process their can be purchasers, end users, advisers and market influencers.Tesla, Inc. The company launched its products specifically in the automotive industry and began to design and supply lifestyle products as well.
The company was originally found by engineers Martin Eberhard and Marc Tarpenning prior to changing its name to just Tesla, Inc. Straubel, and Ian Wright were also accredited with the recognition as the founding fathers of Tesla Motors.
Elon Reeve Musk is currently the serving CEO of the company, overlooking all the operations and the structures of the business. In August ofTesla, Inc.
One of the most exciting years for Tesla was This significantly reduced any compliance check and excelled deliverance exponentially, since the vehicle was already under Germany vehicle standard compliance.
In the same year, Tesla launched additional international locations in Dubai and South Korea, which increased its brand visibility and helped increase revenue streams. ByTesla, Inc. It sold overunits in total. The following is the complete Tesla Business Model Canvas report and how it is different from the rest of its competition.
Best in class — Fully electric vehicles EVs. Solar Energy Systems — Tesla is known for its Electric vehicles, also sells solar panels to residential and commercial customers. Vehicle class type is based on the following segments:. Rest are provided by suppliers from the US, Europe, and Asia. Electric Vehicle and Technological Knowledge. The following are the set of channels that Tesla utilizes to channel and market its technology:.
Tesla not only sells Electric vehicles but also has created an eco-system of a top of the line green vehicles. Also, it has introduced solar energy systems, and lifestyle products for its loyal customers and the fans of Tesla, Inc. Automotive Segment revenue — it includes sales of all vehicle models, access to charging network, software updates, after — sales services, sales of EV components, retail merchandise, etc. Here is a further breakdown in the automotive segment.
By reviving the theory of utilizing electric vehicles instead of gasoline combustion chamber engines helped to pave the recognition of sufficient EV system, which also contributed to revolutionize the automobile industry from mechanical drives to all smart computer driven electric vehicles. Because of the strategic steps taken to design a sound EV engine system, the possibilities of actualizing an electric car that serves sufficiently and safely, Tesla, Inc.
Tell us what you think? Did you find this article interesting? Share your thoughts and experiences in the comments section below. Tesla Business Model Canvas. Comparison Chart. Tesla — Induction Motor. Typical IC Engine. Weight — This service is free of chargetake out a trial today! Why not see what QuickScore can do for you? You can be up and running within minutes and have a completed scorecard, dashboard and reports within an hour. Like any application, to get real benefit you will need some training.
If you need more, we also provide two free one-hour online training sessions. If you really want to become a ninja master, then we can provide one-to-one or one-to-many training sessions at your premises. Are too many things demanding your attention? We can help you find time by adopting a tried and tested strategic process. After that, strategy will be firmly back on your agenda. Using a scorecard to manage your strategy is easy.
But have you really thought about the scorecard structure? Strategy Workshop Three-day facilitated strategy workshop. Scorecard Workshop Let us help you build your scorecards. QuickScore Training Training at your site for administrators. Book a Strategy Workshop. Video Guides Covering all you need to get started. User Guides Everything you could ever need! Helpdesk Need some advice? Just ask. Presentation QuickScore in overview for management.
Example Dashboards A few exampes of QuickScore dashbaords. Book a Demonstration. Build a Pilot Let us build a pilot, free of charge. Free Preview Log in to our free-to-view system. Customers Read what our customers have to say. Ask for a Free Trial.Few products are ground-breaking innovations with zero competition. Chances are that alternatives for your product exist. You should therefore ensure that your product stands out from the crowd and that people have a compelling reason to choose it over competing offerings.
The Strategy Canvas is a great tool to achieve this, as I explain in this post. The horizontal axis of the canvas captures the key factors companies compete on to provide their products. In the example above, there are twelve factors, which range from offering different models to stylish design. The vertical axis of the Strategy Canvas describes the offering level, the degree to which the competitors offer the factors.
By assessing the degree to which the iPhone and the competitor products fulfil the twelve factors, two lines are created. The dark one represents the value curve of the smartphone industry in ; the light one the first iPhone. When comparing the two lines, we see that the they diverge. This means that the first iPhone was clearly differentiated. Additionally, the two new factors—the touch screen and stylish design—gave the phone a significant competitive advantage and helped Apple disrupt the mobile-phone market.
The canvas therefore complements the board in my approach. Additionally, you should know who your main competitors are. Make sure you choose those factors that define the current standard in your market and are used to advertise and sell products, rather than the ones that favour your own product.
Product reviews and test reports can help you discover the right factors, since they compare a product against the expected standard. Additionally, limit the number of factors you use to about ten. This creates focus and avoids an overly complex canvas.
With the key factors in place, rank the competing offerings and your own product taking into account the degree to which they fulfil the factor. This is not meant to be a scientific exercise but based on the information you have collected whilst identifying the key factors.
Consider if a factor is fulfilled not at allhardlyto some extentor fullyand rank the products accordingly.
How to draw a Strategy Canvas in 4 steps
With the scores in place, represented as dots or circles, connect them to create the value curves. Think about joining up the curves of the competitors to create clarity, as I did in the Strategy Canvas above.
While this carries the risk of overlooking some details, it simplifies the canvas and makes it easier to see where the main opportunities are for making your product stand out. You will subsequently find it hard to explain to your users and customers why they should choose your product. What you would like to see instead is a value curve that significantly diverges from the industry standard, like the white-dotted one in the Strategy Canvas above.
This is achieved by eliminating, reducing, and raising the appropriate key factors, and by creating new ones. Use the Strategy Canvas not only for brand-new products.
Take the iPhone. Trying to stay ahead of the competition, Apple has introduced and raised several factors over the years, including the ability to install third-party apps, the number and size of iPhone models, the battery life, and the camera and video capabilities.
Hi Roman, I followed your blog post. They are helpful and informative.Coffeeaholic
Thank you. However, could you please share some info on: 1. Product managers templates to use during the new product development phases ideation to launch. Thanks for your feedback and sharing the question.The following are 21 business strategy frameworks that are renown for their ability to help you develop optimal business strategies.
The matrix helps you to devise the most suitable plan for your situation. If information about market share percentage is lacking, you could create a matrix comparing the growth rates of your products to the proceeding 12 months of sales.
The strategy canvas captures the current strategic landscape and future prospects for a company.
The Brand Strategy Canvas by Patrick Woods PDF Download
It allows users to clearly see the factors that the industry competes on and the factors that are being ignored. By reorienting a company towards the factors being ignored, it can capture uncontested market space. The Six Paths framework allows managers to look beyond the common restraints of their industries for new opportunities. The framework redirects your attention towards the following six tenets under the Blue Ocean Strategy methodology:.
It helps you to offer value in areas typically not seen in your industry. The framework also helps to remove roadblocks that stand in the way of converting noncustomers into customers. Game theory is the study of mathematical models of conflict and cooperation between intelligent and rational decision-makers. Game theory is often used in economics, political science, and psychology. The challenge is to develop a strategy and action plan to alter your current and predetermined trajectory.Keychron k1 v3
The starting point of this process often involves determining the root causes of a performance gap. According to Three Tiers of Noncustomers framework, companies can fall into the trap of targeting markets that are too small and niched. All of these noncustomers will not convert until there is a considerable leap in value in factors that are important to them; traditionally, those factors are ignored by incumbents in an industry.
Companies should seek to understand the key commonalities across these noncustomers and existing customers. After identifying the commonalities, companies should develop strategies to attract those noncustomers into their market. The Business Model Canvas helps you develop and analyze the possibilities of new startup ideas and growth opportunities of existing businesses. GE-McKinsey Nine-Box Matrix is a strategy tool that offers a systematic approach for the multi-business corporation to prioritize its investments among its business units.The Brand Strategy Canvas is the business planning, entrepreneurship, marketing, brand creation and business strategy book which shares the wonderful techniques to build a fully functional brand.
The Brand Strategy Canvas is the entrepreneurship, brand marketing, business strategy and business planning book which teaches useful ways to build a successful brand. Patrick Woods is the author of this impressive book. This is an ultimate book for the entrepreneurs and the startup founders who are thinking to make a brand. Patrick shares the techniques and tools to build an ultimate strategy for your brand. Learn how to create a team that generates the required sales.
Discover the main points between execution and strategy? How to perform a task that brings positive results? Find out the secrets to craft meaningful messages by using the benefits, features and other attractive terms. How to start a brand and how to avoid debt. How to attract customers and win your position in the heart of buyers and customers.
Make a team that is skillful, collaborative, effective and motivated to achieve results. How to encourage and motivate your team to produce greater results. This book is full of practical tools and strategies to become a successful entrepreneur.
Patrick shares easy to follow rules and regulations which are promised to generate positive results. You can also download Reinventing the Organization by Arthur Yeung.
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