Blue Ocean Toolkit 122020

blueoceanstrategy.
com
Blue Ocean
Tools and Frameworks
Discover powerful tools for new market
creation by Chan Kim & Renée Mauborgne,
the #1 Management Thinkers in the World
© Chan Kim & Renée Mauborgne. Blue Ocean Strategy | Blue Ocean Shift. All rights reserved.
blueoceanstrategy.com
About Chan Kim and Renée Mauborgne

Chan Kim and Renée Mauborgne are Professors of
Strategy at INSEAD, one of the world’s top business
schools. They are ranked #1 Management Thinkers in
the World by Thinkers50.
They are the authors of the 4-million-copy international

bestseller, Blue Ocean Strategy, which is recognized as
one of the most iconic and impactful strategy books ever
written.
And they are authors of New York Times, #1 Wall Street

Journal, USA Today, and Los Angeles Times bestseller,
Blue Ocean Shift: Beyond Competing – Proven Steps to
Inspire Confidence and Seize New Growth.
Contents
What is Blue Ocean Strategy? 4 6 Paths Framework 11

Red vs Blue Oceans 5 3 Tiers of Noncustomers 13
Value Innovation 6 Buyer Utility Map 15
Strategy Canvas 8 Blue Ocean Practical 17
Four Actions Framework 10 Introduction™
Contact us 24
What is Blue Ocean Strategy?
Blue ocean strategy is the simultaneous

pursuit of differentiation and low cost to
open up a new market space and create
new demand. It is about creating and
capturing uncontested market space,
thereby making the competition irrelevant.
It is based on the view that market
boundaries and industry structure are not
a given and can be reconstructed by the
actions and beliefs of industry players.
page 4
Red Ocean vs Blue Ocean Strategy
page 5
Value Innovation
Value innovation, the cornerstone of blue
Break the value-cost trade-off by
ocean strategy, is the simultaneous
answering the following questions:
pursuit of differentiation and low cost,
creating a leap in value for both buyers
Which of the factors that the industry
and the company.
takes for granted should be eliminated?
Which factors should be reduced well
Because value to buyers comes from the
below the industry’s standard?
offering’s utility minus its price, and
Which factors should be raised well
because value to the company is
above the industry’s standard?
generated from the offering’s price minus
Which factors should be created that the
its cost, value innovation is achieved only
industry has never offered?
when the whole system of utility, price,
and cost is aligned.
page 6
Value Innovation
COST
Cost savings are made by eliminating

and reducing the factors an industry
competes on. VALUE
INNOVATION
Buyer value is lifted by raising and creating

factors the industry has never offered.
BUYER VALUE
page 7
The strategy canvas serves two purposes:
Strategy Canvas To capture the current state of play in

the known market space, which allows
The strategy canvas is both a diagnostic users to clearly see the factors that the
and an action framework for building a industry competes on and where the
compelling blue ocean strategy. The competition currently invests and
horizontal axis captures the range of
factors that the industry competes on and To propel users to action by reorienting
invests in, while the vertical axis captures focus from competitors to alternatives
the offering level that buyers receive and from customers to noncustomers of
across all of these key competing factors. the industry
The value curve is the basic component of

the strategy canvas. It is a graphic depiction
of a company’s relative performance across
its industry’s factors of competition. A strong
value curve has focus, divergence as well as
a compelling tagline.
page 8
Strategy Canvas Offering level
Key competing factors
page 9
Four Actions Framework

The Four Actions
Framework is used to
reconstruct buyer value
elements in crafting a new
value curve. To break the
trade-off between
differentiation and low cost
and to create a new value
curve, the framework
poses four key questions,
shown in the diagram, to
challenge an industry’s
strategic logic.
page 10
Six Paths Framework

The Six Paths Framework allows managers The table outlines these six basic
to address the search risk many companies assumptions and the pathway managers can
struggle with. It enables them to successfully take to break away from head-to-head
identify out of the haystack of possibilities competition towards blue ocean creation.
that exist, commercially compelling blue
oceans by reconstructing market The six paths have general applicability
boundaries. across industry sectors. None of the paths
requires special vision or foresight about the
There are six basic approaches to future. All are based on looking at familiar
reconstructing market boundaries. These data from a new perspective.
paths challenge the six fundamental
assumptions underlying many companies’ Instead of looking within the accepted
strategies that keep companies trapped boundaries of competition, the Six Paths
competing in red oceans. Framework allows managers to look
systematically across them to create blue
oceans.
page 11
Six Paths Framework

From Head-to-Head Competition to Blue Ocean Creation
page 12
3 Tiers of Noncustomers
There are three tiers of noncustomers that can be transformed into
customers. They differ in their relative distance from the current market.
page 13
3 Tiers of Noncustomers
The first tier of noncustomers is closest to The second tier of noncustomers is people
the current market, sitting just on the who refuse to use your industry’s offerings.
edge. They are buyers who minimally These are buyers who have seen your
purchase an industry’s offering out of industry’s offerings as an option to fulfill their
necessity but are mentally noncustomers needs but have voted against them.
of the industry.
The third tier of noncustomers is farthest
They are waiting to jump ship and leave from your market. They are noncustomers
the industry as soon as the opportunity who have never thought of your market’s
presents itself. However, if offered a leap offerings as an option.
in value, not only would they stay, but also
their frequency of purchases would By focusing on key commonalities across
multiply, unlocking enormous latent these noncustomers and existing customers,
demand. companies can understand how to pull them
into their new market.
page 14
Buyer Utility Map

The Buyer Utility Map helps to get Each stage encompasses a wide variety of
managers thinking from a demand-side specific experiences. Purchasing, for example,
perspective. It outlines all the levers might include the experience of browsing
companies can pull to deliver exceptional Amazon.com as well as the experience of
utility to buyers as well as the various pushing a shopping cart through Wal-Mart’s
experiences buyers can have with a aisles.
product or service. This mindset helps
managers identify the full range of utility Utility levers: Cutting across the stages of the
spaces that a product or service can buyer’s experience are what we call utility
potentially fill. levers – the ways in which companies unlock
utility for buyers. Most of the levers are
The Buyer Experience Cycle (BEC): A obvious. Simplicity, fun and image, and
buyer’s experience can usually be broken environmental friendliness need little
into a cycle of six stages, running more or explanation.
less sequentially from purchase to
disposal.
page 15
Buyer Utility Map
page 16
Blue Ocean Practical Introduction™ Online Course

Are you interested to learn more about the blue ocean tools and see how companies applied them?
The Blue Ocean Practical Introduction™ online course

dives into blue ocean tools and concepts to show you
how you can:
reorient your perspective from focusing on the

competition to understanding where blue ocean
opportunities reside
shift focus from existing customers towards

noncustomers, creating new demand for your
product or service
create a leap in value for buyers while keeping

the costs low
And lots more!
page 17
Blue Ocean Online Course Curriculum
page 18
Apply blue ocean thinking to

your business and set yourself
on the path to profitable growth.
Enroll now
page 19
You're in great company

People from these organizations (and many more) took the course and set sail
towards a blue ocean.
page 20
Testimonials
"Overall, I found this course extremely "The short case vignettes and follow up
powerful, yet simple. It will help shift my quiz were an easy way to drive home the
thinking from Red Ocean to Blue Ocean basics of each concept quickly. The
and I look forward to applying it to my corresponding book references were
daily life." helpful as well."
"Absolutely valuable, informative and "The video illustrations helped keep

extremely insightful" interest and the content was seamlessly
delivered."
"Clear strategy, concise cases, helpful

"I loved the structure and simplicity."
quizzes, great graphics."
Average customer satisfaction rating: 4.8/5
page 21
Contact
Got questions? Please contact us at:
hello@blueoceanstrategy.com
page 22
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blueoceanstrategy.

About Chan Kim and Renée Mauborgne

They are the authors of the 4-million-copy international

And they are authors of New York Times, #1 Wall Street

What is Blue Ocean Strategy? 4 6 Paths Framework 11

What is Blue Ocean Strategy?

Blue ocean strategy is the simultaneous

Red Ocean vs Blue Ocean Strategy

Cost savings are made by eliminating

Buyer value is lifted by raising and creating

The strategy canvas serves two purposes:

Strategy Canvas To capture the current state of play in

The value curve is the basic component of

Strategy Canvas Offering level

Key competing factors

Four Actions Framework

Six Paths Framework

Six Paths Framework

Buyer Utility Map

Buyer Utility Map

Blue Ocean Practical Introduction™ Online Course

The Blue Ocean Practical Introduction™ online course

reorient your perspective from focusing on the

shift focus from existing customers towards

create a leap in value for buyers while keeping

And lots more!

Blue Ocean Online Course Curriculum

Apply blue ocean thinking to

You're in great company

"Absolutely valuable, informative and "The video illustrations helped keep

"Clear strategy, concise cases, helpful

Average customer satisfaction rating: 4.8/5

Got questions? Please contact us at:

FOLLOW US ON SOCIAL MEDIA

LINKEDIN FACEBOOK INSTAGRAM TWITTER

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