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Blue Ocean Strategy
Global Current
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In this Issue
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Dear
BOS Community,
We are excited to
share with you our very first iPad app, the Blue Ocean Strategy
Visualizer, an easy, efficient, and highly effective creativity
platform to help discover and share your own blue ocean strategies. We
encourage you to read more in our In Focus section below, download
it for free from the iTunes App store, and send us your feedback.
To accompany this new
release, in the third issue of 2013, we Zoom-in on the powerful
trend of mobile technology, entrenched and suddenly indispensable to our
lives. We highlight some of the mobile players who capitalized on this
powerful trend and used blue ocean strategy to engage a new mass of
enthused followers, and also some have-beens that may have missed the
opportunity to stay afloat.
To succeed in this
fast evolving landscape, it requires a shift in strategic thinking and a
departure from status quo. Consumers, continuously online and empowered by
social media, have ample ways to interact with companies in real time. Blue
ocean strategy posits that a meaningful trend is an opportunity, and calls
for managers, strategists and creative thinkers to look across time to
reconstruct market boundaries and create new market spaces in the face of
these trends.
Blue
Oceans Ahead!
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FEATURED REPORT:
Blue Ocean Contracting
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The Garrison Report
The report
depicts the construction business as a red ocean, increasingly viewed as
a commodity by customers. The author suggests that the construction
industry needs to reconstruct conventional boundaries to create blue
oceans, where both the businesses and customers win.
Read
more
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IN FOCUS: BLUE
OCEAN VISUALIZER APP FOR iPAD
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Drag, drop, and instantly draw future strategies to break
free of red ocean competition.
As teams become
increasingly global and work becomes increasingly mobile, strategic
thinking and creativity are critical to stand out from the competition.
Still, even stellar creativity can get muddled if lost in long-winded
explanations.
Strategies
delivered concisely with decisive visuals will save you and your audience
time and bring clarity and vision to the work of strategy.
That
is why we are especially pleased to announce that the first official Blue
Ocean Strategy App, created by INSEAD, is now available for the iPad
through the iTunes
App Store.
An easy, efficient, and highly
effective creativity platform, the new Strategy Visualizer enables
users to dynamically create and collaborate on strategy canvases
and Eliminate-Reduce-Raise-Create
(ERRC) grids using intuitive touch controls and a clean
interface.
We aimed to build an
app that would set users free from the often cumbersome mechanics and
logistics of strategic planning - the spreadsheets and redlined documents,
the email chains and meandering conference calls that lack a common visual
reference point. Whether you are an expert strategist or just getting
started in blue ocean strategy, the Visualizer allows users to draw
their strategy canvases, and reorder factors with simple drag and drop
gestures, instantly reconfiguring the value curves for substitute
offerings. Factors automatically populate an ERRC grid, called into view
with a simple swipe gesture. Additionally, the app enables users to save
and share canvases, encouraging teamwork whether your team is in the same
room or dispersed across regions.
The first business
app that renders your strategies instantly visual, dynamic, sharable and
mobile, our vision is to create a truly value innovative tool for the BOS
community. As such we encourage you to download the app for free and share
your thoughts with us.
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"Our
objective is now to provide a better life to consumers through their
cars, their businesses, their home construction. This is a classic blue
ocean strategy, where the company moves out of hyper-competitive waters
to uncontested markets."
Kazuhiro Tsuga
President
Panasonic
The Economic Times, India
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"How
Apple’s Corporate Strategy Drives High Growth"
Our recently published case introduces the application of
blue ocean strategy in the context of managing business portfolios at the
corporate level and its impact on the total market value of a firm. The
case examines a series of blue ocean strategic moves at Apple that have
transformed the company from a computer manufacturer into a consumer
electronics powerhouse.
Access
our case here
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ZOOM-IN: BOS AND
THE MOBILE WORLD
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Gramble World Launches
Mobile Social Game Network for Good
Inspired by Blue Ocean Strategy,
Adam Palmer decided to found Gramble World, a mobile social gaming
company for the socially conscious mobile gamer. Gramble integrates
charitable donations directly into competitive mobile games. As players
purchase various in-game items, a percentage of the proceeds goes to the
charities of the players' choice.
Read
more
VentureBeat April
2013 USA (In English)
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Dan Zarrella: Why All
Marketers Should Embrace Data
How do you stand out online now that
there are over 200 million blogs and a billion Facebook accounts? Dan
Zarrella, social media scientist and marketer, does not put much stock
into 'early adoption' as a business tactic. He suggests that it is
possible to get some good play early on if marketers can identify which
sites, or platforms, will catch on. However, in the long run, it is all
about blue ocean strategy.
Read
more
Forbes May
2013 USA (In English)
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Did Blackberry Miss Their
Blue Ocean?
Is the latest Blackberry model an
attempt to catch up with competition? Did Blackberry miss the opportunity
to create a blue ocean for itself in Africa? By providing both internet
access as well as normal mobile services, and at a better data rate than
other phone companies in the region, Blackberry could have accessed a
largely untapped market but it may have just missed that opportunity.
Read
more
Not Everybody Likes Tea
Blog May 2013 South Africa (In English)
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Price wars, an increasingly demanding
customer base, and similar offering levels among competitors characterize
the fierce red ocean landscape of the European mobile operator industry.
This series of articles charts a strategy canvas for the industry and use
the ERRC framework to analyze specific actions a telecom company could
take.
Ericsson: The Networked
Society Blog April - May 2013 Sweden (In English)
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Apple Hizo de la Música
un Negocio Rentable (Apple Made Music Profitable)
In the late 1990s Apple observed the
flood of illegal music file sharing enabled by programs such as Napster,
Kazaa, and LimeWire. By 2003 the trend towards digital music was clear and
the demand for MP3 music players was growing. Apple created its online
music store, iTunes, unlocking a blue ocean in digital music, with the
added advantage of increasing the attractiveness of its highly successful
iPod player.
Read
more
Ekos
May 2013 Ecuador (In Spanish)
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Galaxy Note II and Blue
Ocean Strategy
Are you interested in knowing how
Samsung Galaxy has created a blue ocean for itself? Read on to learn how
Samsung solves two distinct customer demands simultaneously with a
smartphone suitable for productivity as well as high-quality
entertainment.
Read
more
DoanhNhan Saigon Online
April 2013 Vietnam (In Vietnamese)
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Getting Crazy Ideas Off
the Ground
Samsung Electronics' Value Innovation
Program (VIP) Center and P&G's Corporate Innovation Fund (CIF) are
presented as programs essential to the cultivation of innovative ideas
outside the scope of traditional departments within large organizations.
The VIP Center, inspired by blue ocean strategy, has been credited with successful
products such as Samsung's Bordeaux TV, instrumental in making Samsung a
category leader.
Read
more
HBR Blog Network
March 2013 USA (In English)
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The Juice-Bar Brawl
With the emergence of health
conscious customers, cold pressed juices have become an industry in and
of itself. Naturally, the competition has followed, which has crowded the
marketplace and resulted in nothing short of juice wars. Danny Meyer,
acclaimed New York City Restaurateur, whose credits include New York
institutions from the Michelin-starred Eleven Madison to the staggeringly
popular Shake Shack, is also founder of Creative Juice, flavorful juices
that are not only healthy but also tasty. Meyer attributes some of his
success to blue ocean strategic thinking. He explains, "Blue ocean
thinking says, 'I don't have to be part of that scrum.' I can swim in
fresh water."
Read
more
The New York Times April
2013 USA (In English)
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Revamped Cargo 2000 Has
New Program
"Most, if not all of us, will
find ourselves in a red ocean industry. You can only win if someone else
loses," says Majjits ten Brink, SVP of sales for KLM-Air
France-Martinair at Cargo 2000. Noting that the air cargo industry
suffers from low reliability for airlines and forwarders, low asset
usage, and a lack of industry standards, he suggests that Cargo 2000 is planning
to implement blue ocean strategy to become a catalyst for fundamental
change in the industry.
Read
more
Air Cargo World May
2013 UK (In English)
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Inside Sales Jobs and
Career Demand Up 54%: But Most Leverage Comes with Dialer Software and
Lead Research
The article reports on the latest
research in metrics and compensation for B2B technology companies. The
author describes his company, InsideSales.com, as belonging to the 'blue
ocean' category, where there are no competitors.
Read
more
Forbes March
2013 USA (In English)
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Kenya's CIC Insurance
Ready to Expand in Region
Less than two years since gaining
independence, South Sudan is attracting the attention of insurance
companies in East Africa. CIC Insurance Group of Kenya is planning to
expand its operations in South Sudan, Uganda, Tanzania, and Malawi. With
underdeveloped insurance structures, South Sudan is considered "a
blue ocean with a lot of potential."
Read
more
Financial Times
April 2013 UK (In English)
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Sailing a Blue Ocean:
Creating Uncontested Market Spaces
Conventional knowledge suggests that
to distance themselves from competition companies need to either reduce
costs or increase value for customers. Blue ocean strategy offers an
alternative where low cost and increased value can be achieved
simultaneously. The article describes how the Nintendo Wii achieved these
dual objectives to successfully sail a blue ocean.
Read
more
Asian Correspondent April
2013 UK (In English)
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PUBLIC SECTOR ON
THE MOVE
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Report Cites Baton Rouge,
New Orleans and Houma-Thibodaux Economic Links
A recent report by the Greater New
Orleans Community Data Center is in-line with the state's blue ocean
strategy for economic development. The blue ocean strategy for the state
of Louisiana stakes out economic development opportunities that have not
been exploited by other states. For example, the state focuses on
rebuilding coastal marshes, leveraging regional expertise in both heavy
construction and engineering.
Read
more
The Advocate
April 2013 USA (In English)
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Leaders from Indiana
University Health and University of Illinois Hospital Define 'Academic
Medical Centers'
The panel of medical industry
practitioners at the Becker's Hospital Review Annual Meeting in Chicago
on May 10th discussed the challenges and trends facing
academic medical centers. Dr. Bryan Becker, CEO of the University of
Illinois Hospital in Chicago, discussed how the hospital redefined their
strategy to focus on creating blue oceans and providing a unique offering
to current and future patients.
Read
more
Becker's Hospital Review
May 2013 USA (In English)
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'Going Niche' for ASEAN
Economic Community
ASEAN countries have been sluggish to
change domestic legislation to support integration efforts across the
region. Governments are reluctant to abandon protectionist barriers for
less competitive industries largely due to fear of alienating key
constituents. The author suggests one way to bolster less competitive
industries is to encourage companies to take advantage of an emerging
middle class. ASEAN countries can pursue either red ocean strategies and
compete in the same markets, or they can turn to blue ocean strategies,
creating markets for themselves and making the competition irrelevant.
The latter could bring more compatibility to ASEAN economies and
strengthen integration.
Read
more
Eurasia Review
May 2013 Singapore (In English)
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NBOS Effective in
PDRM-ATM Sabah Invasion - IGP
The resolution of recent conflict
involving the intrusion of armed Philippino militia upon the eastern
Malaysia that the continuation of NBOS, which isan state of Sabah, is
believed to be in part due to the effectiveness of National Blue Ocean
Strategy (NBOS). Inspector-General of Police Tan Sri Khalid Abu Bakar
said focused on creativity and innovation, will enable the police and
army to effectively resist future attempts to undermine the country's
sovereignty.
Read
more
The Borneo Insider
March 2013 Malaysia (In English)
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FEATURED ACADEMIC
RESEARCH
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Higher Growth through the Blue Ocean Strategy: Implications
for Economic Policy
Lindič, Jaka, Mojca Bavdaž, and Helena
Kovačič. "Higher Growth Through the Blue Ocean Strategy: Implications
for Economic Policy." Research Policy. Vol. 41, issue 5 (June 2012):
928–938
Summary:
To stimulate economic growth, many economic policies focus
on providing support to companies of a specific size, generally small and
medium enterprises (SMEs), new start-ups, and to specific sectors, such as
IT and other high-tech industries. Such policies also incentivize specific
activities, such as R&D and technology innovation, and success is
measured by the number of patents filed and approved. The authors discuss
the shortcomings of this approach and propose an alternative based on blue
ocean strategy. The authors empirically test four propositions derived from
the blue ocean strategy frameworks, using data from 2007 consisting of 512
companies that satisfy the criterion of extreme growth, known in Slovenia
as Gazelles. Their discussion also includes an analysis of swiftly
growing online retailer Amazon. The findings provide empirical evidence of
a correlation between rapid growth and blue ocean strategy - that in fact
all companies that grew fast demonstrated blue ocean strategy - confirming
that creating and exploiting new market space leads to higher growth.
Moreover, the authors also show that fast growth is independent of both
company size and industry. Companies achieve high growth through value
pioneering (or what Blue Ocean Strategy's authors call value innovation),
not only through technology pioneering. The authors challenge some
well-established premises of economic policies and argue that their
findings call for a shift in focus to include value innovation, creation of
uncontested market space, and intra-industry cooperation and collaboration
between companies of different sizes.
Full
Article
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CONTACT US
We want to hear from you!
Is your company applying BOS?
Do you know of a story that should be featured in the
newsletter?
Contact us at
suggest@blueoceanstrategy.com
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Why We're So Afraid of
Change - And Why That Holds Businesses Back
"We're stuck" - a phrase
often used by companies who experience zero growth and use the same
outmoded tactics to run their businesses without taking a notice of the
changing world. The author suggests companies need to change their
well-honed habits and try to create blue oceans. The first step is to
prepare for the change by means of visual exploration.
Read
more
Forbes April
2013 USA (In English)
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How Your Own Expertise Is
Holding You Back?
Have you ever wondered how some
entrepreneurs are able to create new companies, or how certain investors
are capable of bringing new products to market? This article argues these
successes are possible when people can challenge existing assumptions,
assess a situation with fresh perspectives, follow a blue ocean strategic
approach of eliminating or reducing undesired features and raising or
creating desirable ones, and finally practice a dose of humility.
Examples of challenging conventional boundaries include the movie Gorillas
in the Mist, Coca-Cola's Freestyle touchscreen soda machine, and
IKEA.
Read
more
Fast Company May
2013 USA (In English)
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Recommended Reading for
New and Not-So-New Librarians
Bobbi Newman, member of the American
Library Association, claims that even though Blue Ocean Strategy
was written with business people in mind, its applicability to libraries
makes it equally valuable to librarians.
Read
more
Librarian by Day
April 2013 USA (In English)
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15 More Must-Read
Business Books That Could Change Your Life
The Houston Chronicle selects Blue
Ocean Strategy as one of the 15 business books that have helped
change readers' lives: "Have you ever heard the business advice,
'squash your competition?' ... If you own a business, this book may
provide a refreshing model for building a company that truly does stand
out from the crowd."
Read
more
Chron
April 2013 USA (In English)
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Blue Ocean - That's Me.
Red Ocean - That's Them
An inspiring story of a woman who
decided to swim out of a red ocean of competition in the world of
networking and create a distinctive venture that helps women
entrepreneurs connect with each other in meaningful and effective ways.
Read
more
Women Are Game Changers
April 2013 USA (In English)
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Navegar por Aguas
Tranquilas (Smooth Sailing)
Economic crisis has hit the strongest
economies on the planet and in many countries small and medium
enterprises (SMEs) have been hit the hardest. Colombia is one such
example, where a large part of the economy is generated by SMEs and
companies find it extremely challenging to remain profitable. Only a
change in strategy can save companies from failing, yet challenging times
have depleted already scarce resources required for transformation. Blue
ocean strategy offers tools that can help reduce costs and differentiate
companies in the eyes of customers, and promote sustainable growth.
Read more here
and here
El Espectador April
2013 Colombia (In Spanish)
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