Framework: Value Innovation (also called Blue Ocean Strategy (BOS))
Core Question: How can I recreate the industry by enhancing buyer value at low cost?
Key Application Steps:
During the strategic planning process, use the six paths to brainstorm new value curves
Ensure that the prospective value curve has focus, divergence, and a compelling tag line
Consider adoption hurdles for non-customers and the price points of alternatives
Comparisons with other concepts and frameworks:
5 Forces – BOS is a demand side framework geared toward making the competition irrelevant
Competitive positioning
BOS suggests you can have both differentiation and low cost simultaneously
Illustrative Decision Contexts:
How can I create a brand new market?
How can I achieve profitable growth in an unattractive industry by looking across industries, strategic groups, buyers, etc.?
Real world example/HBR Case:
- Cirque du Soleil
- Yellow Tail
