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General Summary:

There are different approaches to generating Blue Oceans. You have the canvas to give your strategy. How do you build a robust business model to ensure your blue ocean is profitable? Final principle of Blue Ocean is to make it profitable. How do you develop and validate your blue ocean ideas? You want to dramatically reduce business risk.

Buyer Utility, Price, Cost, and Adoption.

Is there exceptional utility?  Why should the target market buy it? Foundation of Blue Ocean Strategy. Keep rethinking until you reach the final answer. Then set the right strategic price. Do the masses have a compelling reason to buy it? If not, there will be no market buzz. These are the revenue side of a company’s business model. Cost. Can you earn a healthy profit margin and secure your offering at target cost. Must innovate until cost hits the target profit model. It is the combination of exceptional utility, strategic pricing, and target costing where you have the leap of value for buyers and companies.

What are the hurdles in rolling out your idea? You must address these adoption hurdles to have the successful actualization. Address these upfront. What is your exceptional value and buyer utility? They reveled in the new technology of bells and whistle. It doesn’t matter how many awards it wins, if it doesn’t make life dramatically simpler and more convenient. Create a strategic profile that passes the litmus test. More a function of it’s utility to buyers.

Six Stages of Buyer Experience Cycle

For each stage, managers can gauge the quality of buyers’ experience, as described in Figure 6-3. There are 6 utility levers. These are ways you can unlock exceptional utility for buyers. Most common is customer productivity. Have you removed the greatest blocks to utility for the entire cycle? 36 spaces of the buyer utility map. Remove the biggest blocks to utility to convert non-customers and customers. If you fall in the same space/grid as someone else, it is likely not a Blue Ocean Strategy.

Buyer experience cycle:

Purchase ⇒ Delivery ⇒ Use ⇒ Supplements ⇒ Maintenance ⇒ Disposal