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  • Business Model Perspective On Blu E Ocean Strategy: Section

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    Hugo Caballero Ramirez
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    The document discusses how the Business Model Canvas complements and extends the analytical tools of Blue Ocean Strategy. [1] Blue Ocean Strategy proposes creating new market space through value innovation by increasing customer value while lowering costs. [2] The Business Model Canvas provides a visual framework to understand how changing one part of a business model impacts other components when applying Blue Ocean Strategy. [3] Together, Blue Ocean Strategy and the Business Model Canvas provide a powerful tool to question existing business models and create new, more competitive ones.

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    The document discusses how the Business Model Canvas complements and extends the analytical tools of Blue Ocean Strategy. [1] Blue Ocean Strategy proposes creating new market space through value innovation by increasing customer value while lowering costs. [2] The Business Model Canvas provides a visual framework to understand how changing one part of a business model impacts other components when applying Blue Ocean Strategy. [3] Together, Blue Ocean Strategy and the Business Model Canvas provide a powerful tool to question existing business models and create new, more competitive ones.

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    © All Rights Reserved
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    4 views6 pages

    Business Model Perspective On Blu E Ocean Strategy: Section

    Uploaded by

    Hugo Caballero Ramirez
    The document discusses how the Business Model Canvas complements and extends the analytical tools of Blue Ocean Strategy. [1] Blue Ocean Strategy proposes creating new market space through value innovation by increasing customer value while lowering costs. [2] The Business Model Canvas provides a visual framework to understand how changing one part of a business model impacts other components when applying Blue Ocean Strategy. [3] Together, Blue Ocean Strategy and the Business Model Canvas provide a powerful tool to question existing business models and create new, more competitive ones.

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    © All Rights Reserved
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    of 6

    BUSINESS MODEL PERSPECTIVE

    ON BLU E OCEAN STRATEGY

    sectionwe :Leno oun susmsss Monet. TOOLS wma Tue. To achievevalue innovation, Kim and Mauborgne propose an analytical
    Blue Ocean Strategy concept coined by Kim and Mauborgne in their tool they call the Four Actions Framework. These four key
    'of questions
    million~seIlingbook the same name. The Business Model Canvas is a challenge an industry's strategic logic and established business model;

    _ perfect extension_ofthe analytical tools by' Kim _and Mauborgne.


    Togetherthey provide a powerful framework forquestioningincumbent 1. Which of the factorsthatthe industrytakes for-granted
    should
    "
    business modelsand creating»new,»morecompetitiveimodels; beeliminated?
    Blue Ocean -Strategyis a potent' method forquestioning Value:Proposi-. ‘2.`Which
    factors should be reduced the industry standard?
    tions_andbusiness models and exploring'new Customer Segments. The 3. Which factorsgshouldbe raised well above the
    , Business Model Canvas complements Blue Ocean by providing a visual 4, Which factorsshould be created that the industry has never offered?
    “big
    picture" thathelps us understand how changing one aj business
    model_impacts othercomponents. 'value
    ln _additionto innovation, Kim and Mauborgne_proposeexploring
    ln _a nutshell, Blue Ocean Strategy is _aboutcreatingcompletely new. non-customer groups to create' Blue Oceans and tap _untouchedmarkets.
    industries _throughfundamental differentiation as opposed tocompetingin -BlendingKim 'value
    innovation'concept and Four
    existing industries by tweaking established models. Rather' than outdoing Actions Framework with the Business Model Canvas creates a 'new
    powerful
    competitors in terrnsof traditional perforrnancemetricsj Kim and Mauborgne tool. ln the Business Model Canvas the right-hand side represents value
    :advocate creating new, uncontested market space through whatthe authors creationand the side represents costs; This litswell withKimand
    call value innovation. This means increasing value for customers by creating Mauborgne's value innovation logic of increasing value-andreducingcosts.
    new benefits and services, whilesimultaneously reducing costs by eliminat-

    valuable features or services. Notice how this approach reiects the

    traditionally accepted trade-off between differentiation and lower cost.

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