1()3•Createuncontestedmarketspace•Makethecompetitionirrelevant•Createandcapturenewdemand•Competeinexistingmarketspace•Beatthecompetition•ExploitexistingdemandBlueOceanStrategyRedOceanStrategy5•Breakthevalue-costtradeoff•Alignthewholesystemofafirm’sactivitieswithitsstrategicchoiceofdifferentiationandlowcost•Makethevalue-costtradeoff•Alignthewholesystemofafirm’sactivitieswithitsstrategicchoiceofdifferentiationorlowcostBlueOceanStrategyRedOceanStrategy6•Adiagnostictoolforbuildingacompellingblueoceanstrategy•Itcapturesthecurrentstateofplayintheknownmarketspace•Allowyoutounderstand:•wherethecompetitioniscurrentlyinvesting•thefactorstheindustrycurrentlycompetesoninproduct,serviceanddelivery•whatcustomersreceivefromexistingcompetitiveofferingsonthemarket7’sstandard?Whichfactorsshouldbecreatedthattheindustryhasneveroffered?Whichfactorsshouldberaisedwellabovetheindustry’sstandard?9(ACircusCompany)•Theme•Refinedenvironment•Multipleproductions•ArtisticmusicanddanceEliminateReduceRaiseCreate•Starperformers•Animalshows•Aisleconcessionsales•Multipleshowarenas•Funandhumor•Thrillanddanger•Uniquevenue10•Focusonrivalswithinindustry•Focusesoncompetitivepositionwithinstrategicgroup•FocusesonbetterservingthebuyergroupHead-to-HeadStrategyBlueOceanStrategy•Looksacrossalternativeindustries•Looksacrossstrategicgroupwithinindustry•Redefinestheindustrybuyergroup13•Focusesonmaximizingthevalueofproductorserviceofferingswithintheboundsofitsindustry•FocusesonadaptingtoexternaltrendsastheyoccurHead-to-HeadStrategyBlueOceanStrategy•Looksacrosstocomplementaryproductandserviceofferings•Participatesinshapingexternaltrendsovertime14•VisualAwakening•VisualExploration•VisualStrategyFair•VisualCommunication15•Compareyourbusinesswithyourcompetitors’bydrawingyour“asis”strategycanvas•Seewhereyourstrategyneedstochange16•Gotothefieldtoexplorethesixpathstocreatingblueoceans•Observethedistinctiveadvantagesofalternativeproductsandservices•Seewhichfactorsyoushouldeliminate,create,orchange17•Drawyour“tobe”strategycanvasbasedoninsightsfromfieldobservations•Getfeedbackonalternativestrategycanvasesfromcustomers,competitors’customers,andnoncustomers•Usefeedbacktobuildthebest“tobe”futurestrategy18•Distributeyourbefore-and-afterstrategicprofilesononepageforeasycomparison•Supportonlythoseprojectsandoperationalmovesthatallowyourcompanytoclosethegaptoactualizethenewstrategy19•Firsttier:“Soontobe”non-customerswhoaretheedgeofyourmarket,waitingtojumpship•Secondtier:“Refusing”non-customerswhoconsciouslychooseagainstyourmarket•Thirdtier:“Unexplored”non-customerswhoareinmarketsdistantfromyours20