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Developing an innovation strategy - Competition - Value innovation: Blue Ocean strategies

4 important questions on Developing an innovation strategy - Competition - Value innovation: Blue Ocean strategies

What is a Blue Ocean strategy?

It is to compete outside the normal market a company has worked in. Also called a value innovation.

How can the scope of a Blue Ocean strategy be detected?

By a Value Gap analysis.

What is the difference between disruptive innovations and Blue Ocean strategies?

The difference is that a disruptive technology offers a new technical capability and the particular interest is in how it may migrate from one market to another, completely dislodging existing players. A Blue Ocean, however, usually requires no new capabilities. The innovation comes from recognizing unmet, or over-met, needs and creating a new market, outflanking rather than demolishing other players.

How can a Blue Ocean strategy be designed according to Kim and Mauborgne?

Look across at other segments of the market and combine the most attractive features of both, eliminating the rest
Look across at other industries that provide the same type of function in a different way
Target a different part of the buyer chain
Offer a different mix of emotional and functional needs
Reach out to the other products and services that are used with the product