BlueOceanIdeas.pdf

Blue Ocean Business (Re)Modeling Ideas “Blue Ocean Strategy” is the title of a book and refers to strategies which deliver new value to existing customer needs. Starbucks, as an example, turned a commodity, a cup of coffee, into an addictive experience. For more see the book’s web site at BlueOcean 2 BLUE OCEAN VALUE OPP? In 1492 (excerpts) Author unknown “In fourteen hundred ninety-two Columbus sailed the ocean blue. . . But India the land was not, It was the Bahamas it was hot. . . Columbus sailed on to find some gold to bring back home, as he’d been told.” Because Columbus was the first to go west to get east he stumbled on to a new world that made all explorers and entrepreneurs forget about going to India for spices, silk and tea for the next hundred-plus years. BlueOcean 3 Price Fun humor Multiple productions Artistic music dance Aisle concessions Animal shows Star Performers Multiple show arenas High Low Ringling Bros. Barnum Bailey Value Curve THE STRATEGY CANVAS OF CIRQUE du SOLEIL Theme Refined watching enjoinment Thrills danger Unique venue Cinque du Soleil Value Curve Smaller Regional Circuses This slide is adapted from one in Blue Ocean Strategy which specifically illustrates how Cirque Soleil un-covered a new opportunity apart from the traditional model of how circuses had been competing. BlueOcean 4 ELIMINATE-REDUCE-RAISE- CREATE GRID THE CASE OF CIRQUE DU SOLEIL Eliminate Star performers Animal shows Aisle concession sales Multiple show arenas Create Theme Refined environment Multiple productions Artistic music dance Raise Unique venue Reduce Fun humor Thrill danger This slide, also from Blue Ocean Strategy, illustrates Cirque Soleil’s strategy in another way. BlueOcean 5 SERVICE VALUE ALLOCATION MAPS: PRESENT FUTURE (2a) Present? A B C D (3a) Future O.S. (1a) House (2b) (3b) (1b) Most distributors serve 4 sizes of customers that each deserve a different mode of marketing: A’s get outside sales coverage; B’s proactive tel