Group 4 Melissa Dunlop Laura Randall Alma Pena Mona Shafer Jose Medina Raul Guerrero

1. Blue Ocean Strategy How to Create Uncontested Market Space and Make the Competition Irrelevant • Group 4 • Melissa Dunlop • Laura Randall • Alma Pena • Mona Shafer • Jose Medina • Raul Guerrero

2. Brief Overview • Part 1-Blue Ocean Strategy • Value Innovation • Strategy Canvas • Four Actions Framework • Part 2- Formulating A Blue Ocean Strategy • How to Reconstruct Market Boundaries • Focus on the Big Picture • Avoid Scale Risk When Crating Blue Oceans • The 4-Step Model • Part 3- Executing A Blue Ocean Strategy • Overcoming Organizational Hurdles • Fair Process and Why it Matters • When to Value-Innovate Again

3. Part 1: Blue Ocean Strategy

4. Don’t Compete with Rivals-Make them Irrelevant • Why is this important? It is about strategy that embraces the entire system of a company’s activities. It requires companies to orient the whole system toward achieving a LEAP in value for both buyers and themselves. Without this strategy innovation will remain divided from the core strategy • How can you use this? • Redbox Takeaway 1: Value Innovation Costs Value Innovation Buyer Value

5. Chapter 1 Takeaway 2: Strategy Canvas • To fundamentally shift the strategy canvas of an industry, you must begin by reorienting your strategic focus from competitors to alternatives, and from customers to noncustomers of the industry • Why is this important? You gain insight into how to redefine the problem the industry focuses on and thereby reconstruct buyer value elements that reside across industry boundaries • How can you use this?

6. Chapter 2 Takeaway 3- Four Actions Framework Reduce Which factors should be, reduced well below the industry standard? • Why is this important? • You gain insight into how to drop your cost structure vis-à-vis competitors. You also gain insight into how to lift buyer value and create new demand. • How can you use this? Eliminate Which factors that the industry takes for granted should be eliminated? Create Which factors should be created that the industry has never offered? A new Value Curve Raise Which factors should be raised well above the industry’s standard?

7. Part 2: Formulating a Blue Ocean Strategy

8. Chapter 3 Takeaway 4 of Blue Ocean Strategy is to reconstruct market boundaries by looking systematically across different boundaries to break from the competition and create blue oceans, the chapter presents six paths in achieving this goal: • Look Across Alternative Industries • Looking Across Strategic Groups • Look Across the Chain of Buyers • Look Across Complementary Product and Service offer • Look Across Functional or Emotional Appeal to Buyers • Look Across Time

9. Chapter 4Takeaway 5: Focus on the Big Picture • Drawing a strategy canvas helps to chart a clear to follow, and achieve, strategy.

10. Chapter 4Takeaway 5: Focus on the Big Picture • Take into account the 4 steps of the Strategy Canvas • Visual Awakening • Visual Exploration • Visual Strategy • Visual Communication

11. Chapter 4Takeaway 5: Focus on the Big Picture • Under Armour’s 2009 Strategy • Visualized a need • Made a change • Communicated a message • Assured clarity

12. Chapter 5 Takeaway 6: Avoid Scale Risk When Creating Blue Oceans. • Noncustomers before customers • Commonalities before differences • De-segmentation before finer segmentation • Under Armour: Heat Gear, Cold Gear, All Season Gear

13. Chapter 6 Takeaway 7: The 4-Step Model • Buyer Utility • Price • Cost • Adoption • Under Armour's stance in the 4-Step Model

14. Part 3: Executing a Blue Ocean Strategy

15. Chapter 7 Takeaway 8: Overcoming Organizational Hurdles • Cognitive Hurdles • Making people see and experience the reality that needs to be changed; both employees and customers • Limited Resources • Know your hot spots and cold spots and any possibility of horse trading • Motivation Hurdles • Know your kingpins • Establish fishbowl management • Political Hurdles • Angels, devils, and your consigliere • Tipping Point Leadership vs. Conventional Wisdom

16. Chapter 8 • Takeaway 9: Fair Process & Why it Matters • To gain the confidence and dedication of employees, who are employed lower down in the organization and to guarantee their cooperation,youmust pay attention to the feasibility of the strategy from the beginning • Fair Process Method • Seek a win-win outcome for everyone

17. Chapter 8 • Takeaway 9: Fair Process & Why it Matters • Build a culture of trust, commitment, and voluntary cooperation by using the 3 E-Process • Engagement • Explanation • Expectation Clarity • Create a culture of Mutual Respect • Recognition at emotional level • Recognition at intellectual level Ex. Under Armour-MVP Lunches

18. Chapter 9 • Takeaway 10: When to Value-Innovate Again • Blue Ocean Strategy automatically creates barriers to imitation that will only be temporary • Confront the brutal fact of competitors catching up and when to tackle a new value innovation • One’s own value curve converges with one of the competition • Try to swim the entire Blue Ocean

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