A Brief Primer on Blue Ocean Strategy - BOS.pdf

Overview of BOS.

1. REACHING BEYOND EXISTING
DEMAND
Blue Ocean Strategy

2. MAXIMIZING BLUE OCEANS
Reach beyond existing demand
Focus on existing customers
Drive for finer segmentation to accommodate
buyer differences

3. MAXIMIZING BLUE OCEANS
To maximize the size of their blue oceans,
Companies need to take a reverse course
Look to non-customers rather than focusing on
customers
Build on powerful commonalities in what
buyers value instead of focusing on customer
differences
This allows companies to reach beyond
existing demand to unlock a mass of new
customers that did not exist before.

4. 3 TIERS OF NON-CUSTOMERS
1
st
tier-“soon to be customers”
People closest to your market
Minimally purchase an industry’s offerings out
of necessity, but non-customers
2
nd
tier-“refusing customers”
People who voted against buying the
company’s products
3
rd
tier-“unexplored customers”
People who are the most distant from your
market
Non-customers who have never thought of
your market’s offerings as an option

5. 3 TIERS OF NON-CUSTOMERS
Your
Market
1
st
Tier 2
nd
Tier3
rd
Tier

6. FIRST-TIER NONCUSTOMERS
Soon-to-be noncustomers
Minimal use of market
Look for better opportunity
Wait for new demand from the market

7. PRETA MANGER
British fast-food chain: looked for way to
find demand from first-tier noncustomers
Offers restaurant quality sandwiches at very
fast speed
Sleek setting
Reasonable price

8. SECOND-TIER NONCUSTOMERS
Refusing noncustomers
JCDecaux
Creating value for everyone

9. THIRD-TIER NONCUSTOMERS
Farthest away from an industry’s existing
customers
Unexplored Customers
Never thought of your market’s offerings
as an option

10. THIRD TIER EXAMPLES
Teeth Whitening
Provided by dentists
Branched out into areas not formally marketed
to
Created a new niche market
Reached unforeseen customers

11. GO FOR THE BIGGEST CATCHMENT
Focus on the tier with the biggest
catchment
You may want to look across tiers
Challenge existing strategic orientations
Be aware of competitors

12. CONCLUSION
There are 3 tiers of noncustomers
1
st
tier or “Soon to Be”: Do not buy out of
necessity
2
nd
tier or “Refusing”: Do not buy industry
offerings at all
3
rd
tier “Unexplored”: Never considered your
industry offerings
You must profit from the blue ocean you
are creating not just maximize the size