Most Important Concepts:

• Four Actions Framework:
  • Eliminate: Remove factors that the industry takes for granted but add little value.
  • Reduce: Scale down factors below industry standards to cut costs.
  • Raise: Amplify factors that provide exceptional value to customers.
  • Create: Introduce new elements to deliver unprecedented value.
• Blue oceans eventually face competition and turn into red oceans. Avoid premature strategy shifts and maximize profitability before evolving.

How I Can Use this Info:

Chapter Recap:

Preface:

• Competition should not occupy the center of strategic thinking.
• Industry structure is not given; it can be shaped.
• Strategic creativity can be unlocked systematically.
• Execution can be built into strategy formulation.
• A step-by-step model for creating strategy.

Part 1: Blue Ocean Strategy

1 - Creating blue oceans

• Value innovation is the cornerstone of blue ocean strategy.
• Value innovation occurs only when companies align innovation with utility, price, and cost positions.
• Cost savings are made by eliminating and reducing the factors an industry competes on. Buyer value is lifted by raising and creating elements the industry has never offered.

2 - Analytical tools and frameworks

• Four actions framework:
  • Which of the factors the industry takes for granted should be eliminated?
  • Which factors should be reduced well below the industry standard?
  • Which factors should be raised well above the industry standard?
  • Which factors should be created that the industry has never offered?
• Eliminate-reduce-raise-create grid: