A notable recent on business strategy tips and trivks is Blue Ocean Strategy by W. Chan Kim and Renée Mauborgne of The Blue Ocean Strategy Institute at INSEAD, an European management university. Some quick lessons from the book:
[From the Great Books Series. Also see The Success Manual - Encyclopedia of Advice, which contains summaries of 100+ Most useful books.]
1. Red Ocean: Companies compete for customers.
2. Blue Ocean: Company creates new market.
3. Value Innovation Decrease costs. Increase value to consumer.
4. Analytical Tools and Frameworks:
• Strategy Canvas • Four Actions Framework • Eliminate-Reduce-Raise-Create Grid
5. Characteristics of Blue Ocean Strategy 1. Focus 2. Divergence 3. Compelling Tag line
6. Four Actions Framework: Reduce factors below the standard Eliminate Create New factors taken factors never Value Curve for granted before offered Raise factors well below the standard
7. Eliminate-Reduce-Raise-Create Eliminate-Raise-Reduce-Create
8. Reconstruct Market Boundaries: Look Across Alternative Industries Look Across Strategic Groups Within Industries Look Across the Chain of Buyers Look Across Complementary Product and Service Offerings Look Across Functional or Emotional Appeal to Buyers Look Across Time.
9. Visualize Strategy: Visual Awakening; See where you are. Visual Exploration; See how others see you Visual Strategy Fair; See where you could be Visual Communication; Draw a Map for everyone (Pioneer-Migrator-Settler Map)
10. Sequence of Blue Ocean Strategy: Buyer utility - Is there exceptional buyer utility in your business idea? Yes No -- Rethink Price Is your price easily accessible to the mass of buyers? Yes No -- Rethink Cost Can you attain your cost target to profit at your strategic price? Yes No -- Rethink Adoption A Yes Commercially What are the adoption hurdles in Viable Blue actualizing your business idea? Ocean Idea Are you addressing them up front?. No -- Rethink
11. The Buyer Utility Map: The Six Stages of the Buyer Experience Cycle 1. 2. 3. 4. 5. 6. Purchase Delivery Use Supplements Maintenance Disposal Customer productivity The Six Utility Levers Simplicity Convenience Risk Fun and image Environmental friendliness.
