Questions before:

When you create a Blue Ocean, do you look at the competitors or does that fundamentally force you converge? What psychologically happens when you look at competition?

What is our strategy curve?

Questions after:

Main Points:

Don’t outsource your eyes.

General Summary:

What is the planning process to focus on the big picture so that you arrive at the Blue Ocean Strategy? Most companies’ strategic planning process keeps them in the red ocean and competing within an existing market.

Typical strategic plan:

1. Lengthy description of current industry conditions and competitive situation.
2. Discussion of how to increase market share, capture new segments, cut costs. There is an outline of numerous goals and initiatives.
3. Budget is attached and determined with fancy graphs.
4. Preparation of a large document where you combine a bunch of people from various parts of the industry.

As a result, there aren’t many clear or compelling strategies. This lack of clarity produces a lot of muddle that paralyze executives. They don’t add up to a clear unified direction for the company. It’s a bunch of tactics.

Second Principle of Blue Ocean Strategy: