What did yellow tail do, which the existing, incumbent players were unable to?

 Created a social drink accessible to everyone: existing wine consumers, beer drinkers, cocktail
drinkers, and other drinkers of non-wine beverages
 Had no promotional campaign, mass media, or consumer advertising
 Produced an uncomplicated wine structure that was instantly appealing to the mass of alcohol
drinkers. With the need for aging eliminated, the needed working capital for aging wine also
reduced, creating a faster payback for the wine produced
 yellow tail created ease of selection by reducing the range of wines offered, removing all
technical jargon from the bottles and creating a non-intimidating display
 Minimizing the stock keeping units maximized its stock turnover and minimized investment in
warehouse inventory
 Raised the price of its wines above the budget market more than double the price of a jug wine

Why were they successful, while others not? 

 yellow tail eliminated the factors of Enological Terminology and Distinctions, Aging Quality and
Above-the-line Marketing; reduced the factors of Wine complexity, Wine Range and Vineyard
Prestige; raised the factors of Price vs. Budget Wines and Retail Sore Involvement; and created
the factors of Easy Drinking, Ease of Selection and Fun and Adventure
 yellow tail unlocked blue ocean creating a unique value curve which had focus, divergence and a
tagline

What are the key takeaway?

 To focus on the red ocean is to accept the key constraining factors of limited market space and
the need to beat the competition to succeed
 To break from the competition and open up blue oceans of uncontested market space, the
Strategy Canvas, the Four Actions Framework and the Eliminate-Reduce-Raise-Create Grid are
essential tools
 An effective blue ocean strategy has three complementary qualities: focus, divergence, and a
compelling tagline; which serve as an initial litmus test of the commercial viability of blue ocean
ideas.