I finally got to finish reading this book. It is absolutely a fabulous book. This is a must read for all the people on the product development side or on the strategy side. One of the key things that this book talks about is how do you create a Blue Ocean which will get you out of the bloody red ocean war with your compitetors. The four action framework is a great concept to look into
1. Create – What is that you are creating new. This factor should not have been offered by the industry that you are in.
2. Eliminate – What factors are taken for granted and should be eliminated.
3. Reduce – What factors can be reduced yet still provided the value needed.
4. Raise – What factors should be raised above the industry standards
Also the next focus should be on non-customers.
First-Tier Non-customers – These are the people who are currently the customers who interact very minimally and not too happy or else looking for other alternatives
Second-Tier customers – These are the people who are not customers currently and who dislike or don’t want to use your products.
Third-Tier customers – These are the people who are untapped and not considered as customers for the industry you are in.
Finally overcoming the “Organizational Hurdles”
Strategic shift: Involve your employees to talk to them about the strategic shift.
Limited Resource – Address the limited resource issues
Motivation – Motivate the key people to move fast and tenaciously
Politics – The key phrase most of the places is “You get shot down before you stand up”. You need to address all the issues.
On the whole it was great reading about all the companies that created Blue Oceans for themselves. Cirque De Sole, Yellow Tail., Home Depot, Southwest Airlines, CNN etc….