Strategic Canvas What is the problem you are trying to solve? The real nemesis here is a business model which pits you against others in your industry.
The Berg Consulting blog - information, opinion and the latest news on innovation strategy and leadership. What is Blue Ocean Strategy Part 3 - The Strategy Canvas Robynne Berg - Monday, October 31, Blue ocean strategy is a suite of strategic principles, tools and methodologies that help organisations create leaps in value and profit by looking beyond the limitations of traditional competitive strategy.
It opens our minds, allowing us to look beyond existing demand, redefine the marketplace and make the competition irrelevant. In my past two blogs on Blue Ocean Strategy see links below for more information I talked about the key concepts of blue ocean strategy and introduced the concept of value innovation; the cornerstone of blue ocean strategy.
But how to we actually create blue oceans? This blog introduces the strategy canvas — a diagnostic tool and action framework for creating blue oceans.
The Strategy Canvas The strategy canvas is one of the most useful tools in the blue ocean strategy methodology. It allows companies to analyse their current situation and understand the criteria and assumptions against which Use blue ocean strategy canvas they and their competitors compete.
It helps establish where expenditure and focus are directed and can help an organisation understand its competitive value in the current environment. And it reveals where leaps in value can be found. From the strategic canvas comes the insights of opportunities that competitors are failing to see.
But this blog is going to demonstrate how even small businesses can apply the concept. Case Study - Smartpen Australia When small business Smartpen discovered they were competing with a major retailer, creating a strategy canvas provided them with critical insights into their current environment as well as revealing opportunities, which would let them reach beyond the competitive factors to find new market space.
Smartpen is a small online distribution company, based in Brisbane. In they were one of the first companies in Australia to launch the Livescribe Smartpen — a pen that digitally captures hand written text and audio and converts it to formats such as pdf; a great efficiency tool for anyone who takes hand written notes.
However, no sooner had owner Mark Parker, set up his distribution network than Officeworks also started selling the Livescribe pens.
Parker quickly realised that his business was no match for the resources and profile of the megastores and that the only way he could compete was through innovative strategy. Parker undertook the development of a blue ocean strategy for his business. His strategy canvas looked like this.
He sought to achieve a focus on value innovation through applying the four actions framework; eliminate, reduce, raise, create see last blog. Officeworks and other retailers added little or no value to the product beyond distribution.
But by leveraging social media platforms such as LinkedIn, Facebook, Twitter and blogging, Mark became the subject matter expert on the Smartpen. He created user groups and post purchase support. He was able to access large untapped markets including the education sector, students with learning disabilities and the engineering industry.
His new strategy canvas looked like this. At a very low cost Parker created a leap in value for his customers that could not be replicated by his competitors.
He established new demand through establishing a business model based on advice and service. As a result his business turnover grew ten-fold. And, in so doing he demonstrated how a small Australian business could outmanoeuvre a retailing icon through applying blue ocean strategy. To give you a sense of its different applications below are the strategy canvases for AirAsia and Cirque de Soleil.
To read the full case studies click on the links below. This is because the strategy canvas demonstrates a story in one page. On one page stakeholders can understand how and why there must be change and view with vision for the future.Thus they have created a Blue Ocean strategy. In the example above we can see that Southwest Airlines has used ‘car travel’ thinking to create an area of differentiation to their strategy Author note: Many thanks to caninariojana.com who provided the strategy canvas tool used to create the strategy canvases above.
What is Blue Ocean Strategy Part 3 - The Strategy Canvas Robynne Berg - Monday, October 31, Blue ocean strategy is a suite of strategic principles, tools and methodologies that help organisations create leaps in value and profit by looking beyond the limitations of traditional competitive strategy.
2) understanding the blue ocean strategy, 3) how to apply the blue ocean strategy to your business, and 4) examples. WHAT IS THE BLUE OCEAN STRATEGY The term blue ocean was coined by two professors caninariojana.com Kim and Renee Mauborgne in their book titled 'Blue Ocean Strategy: How to Create Uncontested Market Space and the Make Competition Irrelevant' ().
Blue Ocean Strategy & Shift Tools W. Chan Kim and Renée Mauborgne created a comprehensive set of analytic tools and frameworks to .
Thus they have created a Blue Ocean strategy. In the example above we can see that Southwest Airlines has used ‘car travel’ thinking to create an area of differentiation to their strategy.
Author note: Many thanks to caninariojana.com who provided the strategy canvas tool used to create the strategy canvases above. The strategy canvas is a central diagnostic tool and an action framework developed by W. Chan Kim and Renée Mauborgne for getting clear on the current state of play and making your blue ocean move.
It graphically captures, in one simple picture, the current strategic landscape and the future prospects for an organization.