Blue ocean strategy is a business marketing strategy of creating a new market space for its services and products. Jan 12, 2020 once a blue ocean is discovered, management must clearly formulate the blue ocean strategy and take the actual actions to implement the new strategy. Renee mauborgne of insead explains how a landmark idea is evolving. People normally want to jump right into the strategy canvas without going through the 5step process outlined in the blue ocean shift book or. Nov 05, 2015 the buyer utility map of blue ocean strategy created by w.
Save hours of manual work and use awesome slide designs in your next presentation. Using the blue ocean buyer utility map arbor dakota strategies. Blue ocean strategy is a landmark idea founded by w. Dec 06, 2017 it is derived from a theoryapplication to help companies map out strategic areas to gain market share and what elements can be improved on to improve current markets and marketing efforts. This tool is the central diagnostic and action framework for building a compelling blue ocean strategy. Evaluating a blue ocean strategy a buyer utility map 1485 words 6 pages according to kim and mauborgne 2005, when formulating a blue ocean strategy a b uyer utility map can help managers obtain the proper perspective of their product or services utility to its buyers p. The blue ocean strategy seems to be a perfect solution for present companies to become sustainable successful.
The powerpoint slide features a blue ocean utility map tool, which may be used to show the interrelationship of the six stages of buyer experience and the six utility levels of the products and services offered by a specific company the slide design contains a table, which have the stages of buyer experience for column headers namely, purchase, delivery, use, supplements, maintenance. It outlines all the levers companies can pull to deliver utility to buyers as well as the different experiences buyers can have of a product or service. In terms of the buyer utility map, the entire industry focused. The buyer utility map allows managers to visualize the aspects of utility across the buyers or potential buyers entire experience cycle. Blue ocean strategy buyer utility map on the app store. The buyer utility map is a perfect companion tool for analyzing the buyer experience and identifying hidden opportunities to create blue oceans. Blue ocean strategy glossary buyer utility map buyer utility map is a tool that helps managers test whether their business or productservice offers a leap in value to buyers. Applying the six paths framework to reconstruct market boundaries. The blue ocean strategy was also selected due to its focus on creating new uncontested markets, capturing new demand, and gaining competitive advantage by simultaneously pursuing differentiation and low cost. Daily mirror,sri lanka this article discusses the blue ocean strategys buyer utility map, and shows how it can help managers identify and unlock the different levers of buyer utility to break away from the competition and create new market space. The framework also helps to remove roadblocks that stand in the way of converting noncustomers into customers.
Chan kim and renee mauborgne, is an analytic tool of blue ocean strategy. It helps you to offer value in areas typically not seen in your industry. He is the coauthor, along with renee mauborgne, of the book blue ocean strategy. Chan kim and renee mauborgne, helps to get managers thinking from a demandside perspective. How to create uncontested market space and make the completion irrelevant, harvard business school press, boston, page 121 kim and mauborgne 2005,explain the buyer utility map and buyer above as follows. This allows them to build a viable business model and ensure that a company profits from the blue ocean it is creating. Buyer utility map in blue ocean strategy gunawardana, g. Most prominently, since 2009 the malaysian government has implemented a national blue ocean strategy to lift the living standard of the country and to. Value innovation is a new way of thinking about and executing strategy that results in the creation of a blue ocean. Blue ocean strategy powerpoint template is a professional and modern presentation for the description or explanation of the blue ocean strategy theory.
It outlines 6 utility levers you can pull to deliver exceptional utility to buyers as well as the various experiences buyers. The buyer utility map helps you map where your industry concentrates, as well as how to diverge. While blue ocean strategy helped to identify new avenues for strategic success, it fell short on providing the actual steps needed to jump from a crowded marketplace into the fabled blue ocean of the title. The blue ocean strategy is best illustrated by the performance of cirque du soleil. Download the excel spreadsheet to begin creating your buyer utility map. An introduction to blue ocean strategy mba knowledge base. Many of these are selfexplanatory measures, which enhance the overall experience for the buyer. Chan kim and mauborgne have therefore constructed more frameworks that can help with this process like.
Sequence of blue ocean strategy buyer utility map price corridor of the mass four hurdles to strategy execution tipping point. This includes the six stages all buyers will go through in making a purchase, as well as the utility levers you can pull to change how your buyer experiences each stage. The buyer utility map of blue ocean strategy created by w. Welcome to blue ocean strategy were thrilled to have you on board. Home blue ocean strategy powerpoint template blue ocean buyer utility map tool blue ocean buyer utility map tool the powerpoint slide features a blue ocean utility map tool, which may be used to show the interrelationship of the six stages of buyer experience and the six utility levels of the products and services offered by a specific company. Buyer utility map the buyer utility map, developed by w. It is designed to uncover hidden opportunities to create blue oceans of new market space and to test if your offering creates exceptional buyer utility. Blue ocean strategy buyer utility map for ios free. In blue ocean strategy, the buyer utility map is a chart that shows the six buy utility levers. Based on a study of 150 strategic moves spanning more than 100 years and 30 industries, blue ocean strategy addresses this question and provides a systematic approach to drafting and implementing your own blue ocean strategy. Sequence of blue ocean strategy a commercially viable blue ocean idea no rethink yes yes yes yes no rethink no rethink no rethink buyer utility price cost adoption 20.
The concept of blue ocean is based on the idea that the business universe is made up. Blue ocean shift is the definitive guide to shift you, your team, and your organization to new heights of confidence, market creation, and growth. Here is a catalogue of blue ocean strategy pedagogical materials, used in over 2,800 universities and in almost every country around the world. The powerpoint slide features a blue ocean utility map tool, which may be used to.
This session explores the practice aspects of the blue ocean journey. The buyer utility map helps managers to understand the levers. May 31, 2016 instead of fighting headon with your competitors, how do you create uncontested market space and make the competition totally irrelevant. Know who developed the blue ocean strategy, understand what is a business universe, differentiate between blue ocean and red ocean, describe ways to create blue oceans, understand key terms related to. Companies need to build their blue ocean strategy in the sequence of buyer utility, price, cost, and adoption. The blue ocean strategy as a method for developing sustainable profitable frameworks implies the fundamental idea of developing new innovational markets with a majority of new customers. Chan kim, of blue ocean strategy, expanded edition 2015. Blue ocean strategy formulation the four principles of strategy formation this blog article is a summary of the book by w. First and foremost on their list is a tool used to break out of competition and make competition irrelevant called the strategy canvas. Using the blue ocean buyer utility map arbor dakota. Utility levers are methods in which a product seller can bypass one or more of the stages of the buyer experience cycle. It captures the current state of play in the known market space.
Buyer utility map blue ocean strategy shortform blog. Feb 11, 2012 through this discussion of blue ocean strategy, weve taken a look at the business landscape primarily through the eyes of the entrepreneur, the person actually creating the product. Blue ocean strategy powerpoint template slidemodel. To aid you in completing this step and all the other steps in. Jul 28, 2018 the strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. Blue ocean strategy globalization, entrepreneurship and. But only the seasoned managers understand the complexity behind this simplicity. One key point of blue ocean strategy is how to create value and how to make customer comfortable and willing to pay for it. The buyer utlity canvas is a core strategic tool used in blue ocean strategy. Daily mirror,sri lanka this article discusses the blue ocean strategy s buyer utility map, and shows how it can help managers identify and unlock the different levers of buyer utility to break away from the competition and create new market space. Blue ocean strategy and sustainability for strategic management. This article is about the combination of the blue ocean strategy together with a project management methodology with the objective to help small and medium companies to surpass the actual financial turmoil and tough competitiviness in the red ocean in order to find their own blue ocean.
In this article you will learn the plan they outline for how to make your competition irrelevant and have sales and profit growth in excess of anything you thought was even possible. The buyer utility map is a graphical representation of wh. The buyer utility map allows managers to visualize the aspects of utility across the buyer s or potential buyer s entire experience cycle. Set sail towards your blue ocean jk beteiligung gmbh. Blue ocean strategy page 1 main idea the best way to beat your competition is, in fact, to stop competing against them. Blue ocean strategy buyer experience cycle buyer utility map the buyer utility map helps to get managers thinking from the right perspective. One of the most valuable tools in the blue ocean toolkit but often underused is the buyer utility map. Innovation has a key role on this matter, but not only. We introduce the buyer experience cycle and the buyer utility map. Blue ocean strategy formulation the four principles of. Each tool has a slide for the description and application within the strategy analysis. How to create uncontested market space and make the competition irrelevant, w. Patricia mooney nickel icpms nickel method jefferson nickel errors 1943 steel nickel compte nickel 3 tiers of customers buyer utility map of compte nickel pitting corrosion on nickel basis material understanding nace mr0175 limits on nickel compte nickel blue ocean strategy hard corrosion on nickel. Tonight, well be taking a more detailed look at the customers.
Chan kim and renee mauborgne enables you to uncover hidden opportunities to create a blue ocean by identifying blocked utility for buyers. Before we dive into the buyer utility map, lets understand how it fits into blue ocean strategy. In executing a blue ocean strategy, how can a company overcome various organizational hurdles and build trust and commitment among people who work for or with the company. The buyer utility map helps managers identify the full range of utility spaces that can be unlocked to create a blue ocean of uncontested market space. Create blue oceans rehability blue ocean strategy chap 3. Mar 04, 2015 one of the most valuable tools in the blue ocean toolkit but often underused is the buyer utility map. Buyer utility map help managers break the utility for their consumers and generate innovative ideas 3. While this came in appendix a in the book, this is a good time to cover three industries with repeated blue ocean creation. Blue ocean strategy case study service nsw 3 1 introduction blue ocean strategy1 has been used extensively to transform the public sector around the world at a local, state and national level. Value innovation value innovation places equal emphasis on value and innovation. Blue ocean strategy is centered on strategies to differentiate your products and services radically. It is derived from a theoryapplication to help companies map out strategic areas to gain market share and what elements can be improved on to improve current markets and marketing efforts.
Jun 08, 2007 sequence of blue ocean strategy a commercially viable blue ocean idea no rethink yes yes yes yes no rethink no rethink no rethink buyer utility price cost adoption 20. The buyer utility map helps to get managers thinking from the right. Each industry underwent continuous upheaval, each time spurred by a blue ocean strategy that 1 reduced factors unimportant to buyers, 2 increased factors important to buyers, 3 expanded the market. It outlines all the levers companies can pull to deliver exceptional utility to buyers as well as the various experiences buyers. This templates provides iconography and diagrams to work with the blue ocean strategy tools.
Applying the six paths framework to reconstruct market. It outlines all the levers companies can pull to deliver exceptional utility to buyers as well as the various experiences buyers can have with a product or service. Blue ocean strategy business model blue ocean tools and. This template enables managers and executives to create a detailed and comprehensible blue ocean strategy. Now youve researched and vetted possible blue ocean strategies, youve batched the common pain points of noncustomers, and youre ready to figure out how to execute the strategy. Remove the blocks to buyer utility, unlocking exceptional value. Simplifying a products interface, or cutting extraneous features will enhance the use step, while reducing a products need for potentially hazardous chemicals like mercury. The buyer utility map identifies a full range of utilities that a product or service can potentially adopt in a buyers experience cycle. The buyer utility map by locating a new product on one of the 36 spaces shown here, managers can clearly see how the new idea creates a different utility proposition from existing products. In other words, when you go headtohead against rivals for a share of the existing market, this is like competing in a red ocean.
A selection of blue ocean strategy tools and frameworks strategy canvas, four actions framework, buyer utility map, 3 tiers. Buyer experience cycle buyer utility map source kim wc and. The buyer utility canvas highlights the 6 key utility levers felt by customer across the 8 stages of the buyer experience cycle from the productservice you offer. This strategy makes the competitors irrelevant and the main driver of the companys profits are the decreased costs. Blue ocean strategy value innovation strategy canvas four actions framework errc grid six paths framework pioneer migrator settler map three tiers of noncustomers sequence of creating a blue ocean buyer utility map price corridor of the mass four hurdles to strategy execution tipping point leadership fair process. Learn the concepts of tipping point leadership and fair process that ensure effective execution of blue ocean strategy. Reviewing the blue ocean strategy universiteit twente. Download freeware blue ocean strategy visualizer becbum. If followed correctly those principles the mentioned risks are attenuated. This allows you to understand where the competition is currently investing, the factors the industry currently competes on in products, service, and delivery, and what. Chan kim and rene mauborgne, is an analytic tool of blue ocean strategy. These frameworks and tools are designed to be visual in order to effectively build the collective wisdom of the company and also to effectively execute a. It was built on the notion of creating new markets where competition is irrelevant and the opportunity to grow and be profitable is unlimited. Buyer utility map the buyer utility map helps managers look at this issue from the right perspective.
One of the most effective tools in the blue ocean sift book is the buyer utility map. Buyer utility map as stated, the blue ocean strategy requires the creation of exceptional value for the customer. The buyer utility map helps to get you think from a demandside perspective. However, to get a good, full grasp on the landscape requires the occasional reversal of perspective. Chan kim and renee mauborgne enables you to uncover hidden opportunities to. Evaluating a blue ocean strategy a buyer utility map. Blue ocean shift, however, provides a clear process for business identifying opportunities and developing plans for. Plotting your buyer utility map amazon web services. The first tool, the buyer utility map, indicates the likelihood that customers. The creation of blue oceans is about driving costs down while simultaneously driving value up for buyers. I use it in conjunction with the value proposition canvas to help students and clients get in. This results in not fully developing your blue ocean strategy correctly. Buyer utility map help managers break the utility for their consumers and generate.
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