Clustermeeting 4 Blue Ocean Strategy

2. Clustermeeting 4Blue OceanStrategy 9 mei 2012 De BarrierHouthalen Voorzitter: dhr. MattyZadnikar, Z-Group Professor: Prof. dr. Wim Vanhaverbeke, UHasselt Spreker: dhr. Jo Nelissen, ABN Klimatisatie

3. Blue Ocean Strategy Go where the profits and growth are - and where the competition isn’t W. Chan Kim & Renée Mauborgne

4. Analytical tools and frameworks

5. Strategy Canvas High Low Wine range Above-the-line marketing Vineyard prestige and legacy Price Use of enological terminology Aging quality Wine complexity Figure 2-1

6. The strategy canvas of Cirque du Soleil High Ringling Bros. & Barnum & Bailey Cirque du Soleil Smaller Regional Circuses Low Theme Multiple productions Animal shows Thrills & danger Multiple show arenas Price Artistic music & dance Refined watching enjoinment Aisle concessions Fun & humor Unique venue Star Performers

7. Raise What factors should be raised well beyond the industry standard? Eliminate Create What factors should be eliminated that the industry has taken for granted? What factors should be created that the industry has never offered? Reduce What factors should be reduced well below the industry standard? Four Actions Framework: Key to Value Curve The key to discovering a new value curve lies in answering four basic questions

8. BOS Logic: Reconstruct market boundaries Head-to-Head Competition Boundaries of Competition Creating New Market Space

9. Four Steps of Visualizing Strategy

10. Three Tiers of Customers • There is a universe of noncustomers which can be turned into customers to offer a big blue ocean market. • 1st tier: “Soon-to-be” noncustomers who are on the edge of your market • 2nd tier: “Refusing” noncustomers who consciously choose against your market • 3rd tier: “Unexplored” noncustomers who are in markets distant from yours Third Tier Second Tier First Tier Your Market

11. BOS Logic: Get the strategic sequence right No Rethink Yes No Rethink Yes No Rethink Yes No Rethink Yes A Commercially Viable Blue Ocean Idea

12. Buyer Utility Map The Six Stages of the Buyer Experience Cycle 2.Delivery 4.Supplements 6.Disposal 1.Purchase 3.Use 5.Maintenance Customer Productivity Simplicity Convenience The Six Utility Levers Risk Fun and Image Environmental friendliness

13. . Buyer Experience Cycle Purchase Delivery Use Supplements Maintenance Disposal How long does it take to find the product you need? Is the place of purchase attractive and accessible? How secure is the transaction environment? How rapidly can you make a purchase? How long does it take to get the product delivered? How difficult is it to unpack and install the new product? Do buyers have to arrange delivery themselves? If yes, how costly and difficult is this? Does the product require training or expert assistance? Is the product easy to store when not in use? How effective are the product’s features and functions? Does the product or service deliver far more power or options than required by the average user? Is in overcharged with bells and whistles? Do you need other products and services to make this product work? If so, how costly are they? How much time do they take? How easy are they to obtain? Does the product require external maintenance? How easy is it to maintain and upgrade the product? How costly is maintenance? Does use of the product create waste items? How easy is it to dispose of the product? Are there legal or environmental issues in disposing of the product safely? How costly is disposal?

14. Uncovering Blocks to Buyer Utility

15. Profit Model of Blue Ocean Strategy The Strategic Price The profit model of blue ocean strategy shows how value innovation typically maximizes profit by using the three levers of strategic price, target cost, and pricing innovation. The Target Profit The Target Cost Streamlining and Cost Innovations Partnering Pricing Innovation