Blue Ocean Strategy Chapter 2 Analytical Tools Frameworks
![Blue Ocean Strategy Chapter 2 Analytical Tools & Frameworks Team 6: Thor Fink Teddy Blue Ocean Strategy Chapter 2 Analytical Tools & Frameworks Team 6: Thor Fink Teddy](https://slidetodoc.com/presentation_image_h/a67ffbbab0828c2ece899512aa8ff81f/image-1.jpg)
Blue Ocean Strategy Chapter 2 Analytical Tools & Frameworks Team 6: Thor Fink Teddy Lathrop John Barron Parker Kyle Kunkel
![Chapter Overview � The Strategy Canvas � Four � The Actions Framework Eliminate-Reduce-Raise-Create Grid Chapter Overview � The Strategy Canvas � Four � The Actions Framework Eliminate-Reduce-Raise-Create Grid](http://slidetodoc.com/presentation_image_h/a67ffbbab0828c2ece899512aa8ff81f/image-2.jpg)
Chapter Overview � The Strategy Canvas � Four � The Actions Framework Eliminate-Reduce-Raise-Create Grid � Characteristics of a Good Strategy
![The Strategy Canvas � “Effective blue ocean strategy should be about risk minimization and The Strategy Canvas � “Effective blue ocean strategy should be about risk minimization and](http://slidetodoc.com/presentation_image_h/a67ffbbab0828c2ece899512aa8ff81f/image-3.jpg)
The Strategy Canvas � “Effective blue ocean strategy should be about risk minimization and not risk taking” � Strategy Canvas: a diagnostic and an action framework for building a compelling blue ocean strategy. � Captures current state of play in the known market space.
![Shifting Strategy Canvas � Reorienting your strategy focus from competitors to alternatives � customers Shifting Strategy Canvas � Reorienting your strategy focus from competitors to alternatives � customers](http://slidetodoc.com/presentation_image_h/a67ffbbab0828c2ece899512aa8ff81f/image-4.jpg)
Shifting Strategy Canvas � Reorienting your strategy focus from competitors to alternatives � customers to noncustomers � Casella Wine discovered that the mass of American Adults saw wine as a turnoff � Casella Wine Creates [yellow tail] using FAF
![Four Actions Framework 2. Reduce Which factors should be reduced well below the industry Four Actions Framework 2. Reduce Which factors should be reduced well below the industry](http://slidetodoc.com/presentation_image_h/a67ffbbab0828c2ece899512aa8ff81f/image-5.jpg)
Four Actions Framework 2. Reduce Which factors should be reduced well below the industry standard? 1. Eliminate Which factors that the industry takes for granted should be eliminated? A New Value Curve 3. Raise Which factors should be raised well above the industry standard? 4. Create Which factors should be created that the industry has not seen before?
![Applying FAF to Strategy Canvas � Casella created a wine assessable to everyone � Applying FAF to Strategy Canvas � Casella created a wine assessable to everyone �](http://slidetodoc.com/presentation_image_h/a67ffbbab0828c2ece899512aa8ff81f/image-6.jpg)
Applying FAF to Strategy Canvas � Casella created a wine assessable to everyone � [yellow tail] became the number one imported wine in the United States. � By applying FAF to the strategy canvas, Casella was able to become the fastest growing wine brand in the US and Australia.
![Focusing on Noncustomers � Casella focused on non wine drinkers, creating a less complicated Focusing on Noncustomers � Casella focused on non wine drinkers, creating a less complicated](http://slidetodoc.com/presentation_image_h/a67ffbbab0828c2ece899512aa8ff81f/image-7.jpg)
Focusing on Noncustomers � Casella focused on non wine drinkers, creating a less complicated taste, making it sweeter and easier to drink. � Made wines selection process easier by offering only two � [yellow tail] didn’t take years to develop an appreciation for traditional and premium wines, increasing its popularity in the US. � ◦ ◦ ◦ Created three new nonconventional factors in the US wine industry: Easy Drinking Easy to Select Fun and Adventure
![Eliminate-Reduce-Create Grid � [yellow tails] Grid: Eliminate • Enological terminology and distinctions Raise • Eliminate-Reduce-Create Grid � [yellow tails] Grid: Eliminate • Enological terminology and distinctions Raise •](http://slidetodoc.com/presentation_image_h/a67ffbbab0828c2ece899512aa8ff81f/image-8.jpg)
Eliminate-Reduce-Create Grid � [yellow tails] Grid: Eliminate • Enological terminology and distinctions Raise • Price versus budget wines • Aging qualities • Above the line marketing Reduce • Wine complexity Create • Easy drinking • Wine range • Ease of selection • Vineyard prestige • Fun and adventure
![Eliminate-Reduce-Create Grid � Cirque du Soleil Eliminate • Star performers Raise • Unique venue Eliminate-Reduce-Create Grid � Cirque du Soleil Eliminate • Star performers Raise • Unique venue](http://slidetodoc.com/presentation_image_h/a67ffbbab0828c2ece899512aa8ff81f/image-9.jpg)
Eliminate-Reduce-Create Grid � Cirque du Soleil Eliminate • Star performers Raise • Unique venue • Animal shows • Multiple show arenas Reduce Create • Fun and humor • Theme • Thrill and danger • Refined environment • Multiple productions • Artistic music and dance
![3 Characteristics of a Good Strategy � Focus � Divergence � Compelling Tagline 3 Characteristics of a Good Strategy � Focus � Divergence � Compelling Tagline](http://slidetodoc.com/presentation_image_h/a67ffbbab0828c2ece899512aa8ff81f/image-10.jpg)
3 Characteristics of a Good Strategy � Focus � Divergence � Compelling Tagline
![Focus � By directing their attention to non wine drinkers, [yellow tail] was able Focus � By directing their attention to non wine drinkers, [yellow tail] was able](http://slidetodoc.com/presentation_image_h/a67ffbbab0828c2ece899512aa8ff81f/image-11.jpg)
Focus � By directing their attention to non wine drinkers, [yellow tail] was able to create a blue ocean by focusing on the noncustomers. � Southwest emphasizes three factors ◦ Friendly service ◦ Speed ◦ Frequent Point to Point departures
![Divergence � Applying the four actions of eliminating, reducing, raising, and creating, they differentiate Divergence � Applying the four actions of eliminating, reducing, raising, and creating, they differentiate](http://slidetodoc.com/presentation_image_h/a67ffbbab0828c2ece899512aa8ff81f/image-12.jpg)
Divergence � Applying the four actions of eliminating, reducing, raising, and creating, they differentiate their profiles from the industry’s average. � Southwest pioneered point-to-point travel between midsized cities. � [yellow tail] limited selection and created a sweeter, easier to drink wine. � Cirque du Soleil introduced live music, storylines, removed animals, etc, in order to differentiate from other circus shows.
![Compelling Tagline � Southwest “The speed of a plane at the price of a Compelling Tagline � Southwest “The speed of a plane at the price of a](http://slidetodoc.com/presentation_image_h/a67ffbbab0828c2ece899512aa8ff81f/image-13.jpg)
Compelling Tagline � Southwest “The speed of a plane at the price of a car-whenever you need it. ” � Cirque du Soleil first performance titled “We Reinvented the Circus. ”
![](http://slidetodoc.com/presentation_image_h/a67ffbbab0828c2ece899512aa8ff81f/image-14.jpg)
![Reading the Value Curves � Strategy � Value Canvas Curve Focus � Mixing Value Reading the Value Curves � Strategy � Value Canvas Curve Focus � Mixing Value](http://slidetodoc.com/presentation_image_h/a67ffbbab0828c2ece899512aa8ff81f/image-15.jpg)
Reading the Value Curves � Strategy � Value Canvas Curve Focus � Mixing Value Curve and Competitors signifies being caught in a red ocean.
![Chapter 2 Recap � Shifting the strategic canvas requires that companies focus on noncustomers Chapter 2 Recap � Shifting the strategic canvas requires that companies focus on noncustomers](http://slidetodoc.com/presentation_image_h/a67ffbbab0828c2ece899512aa8ff81f/image-16.jpg)
Chapter 2 Recap � Shifting the strategic canvas requires that companies focus on noncustomers and what the industry doesn’t have. � Eliminate, Create, Reduce, and Raise what is already in your respective industry. Using the Four Actions Framework helps create blue oceans. � The Three Characteristics of a Good Strategy are focus, divergence, and a compelling tagline. � Being able to focus on a certain group or idea, differentiating yourself, and creating a unique tagline are all essential in creating blue oceans.
![Questions? ? ? Comments Questions? ? ? Comments](http://slidetodoc.com/presentation_image_h/a67ffbbab0828c2ece899512aa8ff81f/image-17.jpg)
Questions? ? ? Comments
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