Leaders Are Readers Series Episode 3: Blue Ocean Strategy (Expanded Edition) How To Create Uncontested Market Space And Make The Competition Irrelevant by W. Chan Kim And Renee A Mauborgne
PATH 1: LOOK ACROSS ALTERNATIVE INDUSTRIES
What are the alternatives to your industry?
Why do customers trade across them?
*"By focusing on the key factors that lead buyers to trade across alternative industries and eliminating or reducing everything else, you can create a blue ocean of new market space."
REDUCE - RAISE - ELIMINATE - CREATE GRID
(explained in the podcast episode)
REDUCE: What factors could be reduced well below industry standards?
RAISE: What factors should be raised well above the industry standards
ELIMINATE: Which of the factors that the industry takes for granted should be eliminated?
CREATE: What features could be created that the industry has never offered?
PATH 2: LOOK ACROSS STRATEGIC GROUPS WITHIN THE INDUSTRY
*"Strategic groups can generally be ranked in a rough hierarchical order built on 2 dimensions, price and performance. Each jump in price tends to bring a corresponding jump in some dimensions of performance."
What are the strategic groups in your industry?
Why do customers trade up for the higher group and why do they trade down for the lower one?
PATH 3: LOOK ACROSS THE CHAIN OF BUYERS
*The chain of buyers is directly or indirectly involved in the buying decision. Challenging an industry's conventional wisdom about which buyer group to target can lead to the discovery of a new blue ocean.
The buyer is not always the user, and users may greatly influence the buy decision.
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