๐ DAILY BOOOK SUMMARY ๐ ๐ 11 Lessons from ๐ ๐ฅ Blue Ocean Strategy ๐ฅ By W. Chan Kim ๐ฏ 1. Definition of Blue Ocean Strategy โข Focuses on creating uncontested market spaces rather than competing in existing ones. โข Aims to render competition irrelevant by offering unique value propositions. 2. Value Innovation โข The core principle of Blue Ocean Strategy, whic h involves differentiating and reducing costs simultaneously โข Breaks the traditional trade-off between value and cost. 3. Strategic Canvas โข A visual tool to compare the value propositions of a companyโs product or service with competitors. โข Helps in identifying areas to eliminate, reduce, raise, or create to unlock a blue ocean. 4. Four Actions Framewor โข Eliminate: Remove factors that the industry has taken for granted but are no longer necessary โข Reduce: Lower factors that have been over-served in the industry โข Raise: Increase factors that provide higher value to customers โข Create: Introduce new factors that the industry has never offered 5. Reconstruct Market Boundaries โข Redefines market boundaries by looking across alternative industries, strategic groups, buyer groups, complementary products/services, and trends โข Encourages thinking beyond the conventional industry logic to create a blue ocean 6. Focus on the Big Picture, Not the Numbers โข Strategic planning should prioritize a big-picture vision and long-term growth rather than getting lost in detailed figures 7. Reach Beyond Existing Demand โข Targets non-customers rather than focusing solely on existing customers. โข Three tiers of non-customers - รท Soon-to-be non-customers: Those on the edge of your market. รท Refusing non-customers: Those who consciously choose against your industry รท Unexplored non-customers: Those who havenโt been targeted at all 8. Get the Strategic Sequence Right โข Follows a specific sequence for strategy formulation โข Buyer Utility: Ensure the product delivers exceptional value โข Price: Set a strategic price thatโs appealing to the mass marke โข Cost: Ensure the business model can sustain profitability at the strategic price. โข Adoption: Address any barriers to adopting the new offering. 9. Overcome Key Organizational Hurdles โข Identifies and addresses cognitive, political, motivational, and resource challenges within the organization to implement the strategy effectively. 10. Build Execution into Strategy โข Aligns the entire organization with the new strategic vision โข Creates a culture of trust and commitment by involving employees in the strategy process 11. Fair Process โข Emphasizes transparency, engagement, and clarity in strategic decision-making โข Ensures all stakeholders understand and support the strategic shift 12. Sustainability of Blue Ocean Strategy โข Continuous innovation is necessary to maintain a blue ocean advantages ๐For downloading full book ๐ Check Comment section , you will get Free eBook -
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