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people with high disposable income but little time He added features to

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									In the previous article we discussed the necessity
of identifying uncontested market spaces - where
       competitors are rendered irrelevant.

powerpoint blue ocean strategy
We discussed that in order to do this, we must pursue value innovation -
recognizing the value system behinds people's market choices structuring
enterprise resources into a superior, innovative alternative But how?
What metric do we use to build these superior, innovations? Blue Ocean
Strategy gives us this metric This metric lets us recognize how other
enterprises are positioned, and to identify overlooked niches Position
Yourself Along the Emotional-Commodity Axis For example, products are
generally seen as either having an emotional appeal or of being merely
commodities By shifting a product's position along this
emotional-commodity metric, we often find the uncontested market space
we're looking for As an example, investment advise has traditionally had
a heavy emotional element, heavily based on a personal relationship and
trust between the client and the broker
 However, enterprises like Charles Schwab and Vanguard Mutual funds,
by shifting their offerings more towards the commodity end - offering
low-cost, no-frills service - have acquired a huge customer base, people
uninterested in the traditional niceties of investment management
companies Focus on Buyers, Users, or Influencers Another metric is
customer type Customers can be divided into buyers, users, and
influencers By switching focus from one customer type to another,
competitors can often be completely outflanked When the financial
information vendor, Bloomberg, started, most financial information
systems providers focused on buyers These buyers - purchasing agents
in IT departments - tended to value low price and standardized easily
maintained machines
 Bloomberg, however, recognized that the users - the traders - were
people with high disposable income but little time He added features to
allow them to do online shopping during downtime on the trading floor
He also added features for easy financial calculations - features most IT
purchasing agents were oblivious to Think in Terms of Product Line
Rather Than Product A corollary of Blue Ocean Strategy is to improve
marketing efficiency and drastically reduce cost structure by thinking in
terms of product line rather than product Doing so, marketing efforts are
not wasted because of the failure of a particular offering For example,
when Fred Weiss started his web site AllMath
com, a site devoted to math puzzles and exorcises, he met with limited
success He went on to start AllWords com, which also had limited
success However, he struck it big when he started AllLottery com, a
provider of nationwide lottery data, partially due to the branding of the
word "All " Another example is Black and Decker, the power tool
 Faced with increasing competition and unable to anticipate whether the
market would demand electric drills or electric hammers etc from year to
year, they instead built a "meta" tool A power tool platform which could
easily be extended as an electric hammer or electric drill or any one of
their tool line This meta-product approach, with its standardized parts
and flexibility, powerpoint blue ocean strategy gave Black and Decker a
cost structure far superior to their competitors
powerpoint blue ocean strategy

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