To form the basis of a blue ocean strategy,

1. The strategy must be decisive to your business,
2. They must be irreversible,
3. They must have a clear trajectory.

• The key question here is this: Is your offering priced to attract the mass of target buyers so that they have a compelling ability to pay for your offering? If it is not, they cannot buy it. Nor will the offering create irresistible market buzz. 
• To secure a strong revenue stream for...

• Value innovation is achieved only when the system of the company’s utility, price, and cost activities is properly aligned.
• Weak utility, price, and cost positions, plus average adoption ability, indicated that a strategy would be a flop. 
• Blue ocean strategy is not about bei...

1. Settlers are me-too businesses,
2. Migrators represent value improvements, and
3. Pioneers are a company’s value innovations. 

• Ask: How does your product or service offer a leap in productivity, simplicity, ease of use, convenience, fun, and/or environmental friend...

• An effective blue ocean strategy has three complementary qualities: focus, divergence, and a compelling tagline. 
• Compelling Tagline: A good tagline must not only deliver a clear message but also advertise an offering truthfully, or else customers will lose trust and interest. 

1. Emotionally oriented industries offer many extras that add price without enhancing functionality. Stripping away those extras may create a fundamentally simpler, lower-priced, lower-cost business model that customers would welcome.(Emotional to Functional)
2. Conversely, functionally or...

• First tier: “Soon-to-be” noncustomers who are on the edge of your market, waiting to jump ship.
• Second tier: “Refusing” noncustomers who consciously choose against your market.
• Third tier: “Unexplored” noncustomers who are in markets distant from yours. 

• When a company’s value curve lacks focus, its cost structure will tend to be high and its business model complex in implementation and execution.
• When it lacks divergence, a company’s strategy is a me-too, with no reason to stand apart in the marketplace.
• When it lacks a comp...

• It is called value innovation because instead of focusing on beating the competition, you focus on making the competition irrelevant by creating a leap in value for buyers and your company, thereby opening up new and uncontested market space.
• Value innovation places equal emphasis on...

1. Eliminate
2. Reduce
3. Raise
4. Create 

• To value-innovate, the company must decide which factors to eliminate and reduce and not only those to raise and create-to construct a divergent value curve. 
• By focusing on the key factors that lead buyers to tr...

Imagine a market universe composed of two sorts of oceans: red oceans and blue oceans. In the red oceans, companies try to outperform their rivals to grab a greater share of existing demand. As the market space gets crowded, prospects for profits and growth are reduced. Blue oceans, in contrast, ...

By being both “free” and “premium,” companies are striving to be strategically priced to capture the target mass while earning profit for the premium features those users, having used the product or service, will feel compelled to buy and upgrade to.