{"id":124,"date":"2011-04-14T01:01:50","date_gmt":"2011-04-14T05:01:50","guid":{"rendered":"http:\/\/facilitativeleadership.wordpress.com\/?p=124"},"modified":"2026-05-01T15:38:28","modified_gmt":"2026-05-01T19:38:28","slug":"blue-ocean-strategy","status":"publish","type":"post","link":"https:\/\/mgrush.com\/blog\/blue-ocean-strategy\/","title":{"rendered":"Blue Ocean Strategy: Create Uncontested Market Space"},"content":{"rendered":"<h2>The <i>MGR<span style=\"font-size: 14pt;\">USH<\/span>\u00a0<\/i>technique encourages different approaches based on whether your project is seeking incremental gain or requires real breakthroughs. <em>Blue Ocean Strategy<\/em>\u00a0promotes breakthrough thinking, justified by the higher profits such thinking generates among companies studied by its authors, Kim and Mauborgne.[1]<\/h2>\n<div id=\"attachment_5824\" style=\"width: 207px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-5824\" class=\"wp-image-5824 size-medium\" src=\"https:\/\/mgrush.com\/blog\/wp-content\/uploads\/2011\/04\/blue-ocean-197x300.jpg\" alt=\"Blue Ocean Strategy\" width=\"197\" height=\"300\" srcset=\"https:\/\/mgrush.com\/blog\/wp-content\/uploads\/2011\/04\/blue-ocean-197x300.jpg 197w, https:\/\/mgrush.com\/blog\/wp-content\/uploads\/2011\/04\/blue-ocean-768x1169.jpg 768w, https:\/\/mgrush.com\/blog\/wp-content\/uploads\/2011\/04\/blue-ocean-673x1024.jpg 673w, https:\/\/mgrush.com\/blog\/wp-content\/uploads\/2011\/04\/blue-ocean.jpg 1236w\" sizes=\"(max-width: 197px) 100vw, 197px\" \/><p id=\"caption-attachment-5824\" class=\"wp-caption-text\"><span style=\"font-size: 14pt;\"><strong>Blue Ocean Strategy by W. Chan Kim and Ren\u00e9e Mauborgne<\/strong><\/span><\/p><\/div>\n<p><span style=\"font-size: 14pt;\">The authors note the failures of companies over the past fifteen to twenty years\u2014since the publishing of <em>In Search of Excellence<\/em>\u00a0and <em>Built to Last<\/em>\u2014including Atari, Data General, Fluor, and National Semiconductor. Therefore, the cornerstone of <em>Blue Ocean Strategy<\/em> is value innovation, defined as &#8220;the integrated and simultaneous pursuit of differentiation (i.e., buyer value) AND low-cost (i.e., supplier value).&#8221;<\/span><\/p>\n<p><span style=\"font-size: 14pt;\">Their analytical toolset begins with a strategy canvas that identifies the principle of competitive and investment factors within your industry. With wine as an example (in brief), they might include price, distinction, marketing, aging, vineyard, complexity, and range. Their framework (called <strong>Four Actions<\/strong>) relies on facilitating consensual agreement around four questions. Participants&#8217; answers suggest a new value curve that might enable your company to shift from traditional industry factors to uncontested market space. The four questions are:<\/span><br \/>\n<span style=\"font-size: 14pt;\">1. ELIMINATE\u2013\u2013Which factors that the industry takes for granted should be eliminated?<\/span><br \/>\n<span style=\"font-size: 14pt;\">2. RAISE\u2013\u2013Which factors should be raised well above the industry\u2019s standard?<\/span><br \/>\n<span style=\"font-size: 14pt;\">3. CREATE\u2013\u2013Which factors should be created that the industry has never offered?<\/span><br \/>\n<span style=\"font-size: 14pt;\">4. REDUCE\u2013\u2013Which factors should be reduced well below the industry\u2019s standard?<\/span><\/p>\n<h4><span style=\"font-size: 18pt;\">Illustrating Blue Ocean Strategy Four Actions Using Cirque du Soleil<\/span><\/h4>\n<p><span style=\"font-size: 14pt;\">For example, they suggest the success of Cirque du Soleil (compared to a traditional circus) accelerated with the following insights:<\/span><br \/>\n<span style=\"font-size: 14pt;\">1. ELIMINATE\u2013\u2013Star performers, animal shows, etc.<\/span><br \/>\n<span style=\"font-size: 14pt;\">2. RAISE\u2013\u2013Unique venue, type of concession sales, etc.<\/span><br \/>\n<span style=\"font-size: 14pt;\">3. CREATE\u2013\u2013Theme, artistic music, and dance, etc.<\/span><br \/>\n<span style=\"font-size: 14pt;\">4. REDUCE\u2013\u2013Multiple show arenas, thrill, and danger, etc.<\/span><\/p>\n<p><span style=\"font-size: 14pt;\">Using the strategy canvas of Southwest Airlines they emphasized\u00a0the factors of friendly service, speed, and frequent point-to-point departures. Both Cirque du Soleil and Southwest Airlines provide\u00a0shared focus, divergence, and a compelling tagline. Overall, the authors\u2019 steps for visualizing strategy draw upon group discussions and consensus\u2014<em>aka<\/em>, excellent facilitation. They also suggest the use of a Pioneer-Migrator-Settler perceptual map that would seem to offer far less benefit than seeking consensus with answers to the Four Actions above.<\/span><\/p>\n<p><span style=\"font-size: 14pt;\"><em>Blue Ocean Strategy<\/em>\u00a0offers additional and valuable questions[2] that challenge each of the life-cycle steps (e.g., <span class=\"s1\"><em><a href=\"https:\/\/web.archive.org\/web\/20260106090117\/https:\/\/mgrush.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">MGR<span style=\"font-size: 12pt;\">USH<\/span><\/a><\/em><\/span><em>\u2019s<\/em> Plan-Acquire-Operate-Control). These questions\u00a0seek to identify the biggest blocks faced by value\u00a0drivers such as productivity, simplicity, convenience, risk, fun\/ image, and environmental friendliness.<\/span><\/p>\n<h4><span style=\"font-size: 18pt;\">Blue Ocean Strategy Organizational Hurdles<\/span><\/h4>\n<p><span style=\"font-size: 14pt;\">The authors finish their discussion with four \u201corganizational hurdles\u201d including politics, motivation, resources, and groupthink (i.e., \u201ccognitive\u201d). However, like many academics, they complete their otherwise valuable book by discussing the importance of converting the strategy into execution\u2014missing the importance and significance of building consensual analysis to pave the way. They jump from the WHY to the HOW without a complete understanding of WHAT is required\u2014i.e., the consensual aspects that assure buy-in, confidence, and ownership. They talk about the importance of attitude and behavior but offer little insight into how to acquire a \u201cfair process,\u201d\u2014something that <span class=\"s1\"><em><a href=\"https:\/\/web.archive.org\/web\/20260106090117\/https:\/\/mgrush.com\/\" target=\"_blank\" rel=\"noopener noreferrer\">MGR<span style=\"font-size: 12pt;\">USH<\/span><\/a><\/em><\/span> alumni do regularly by building consensus around the analysis framework.<\/span><\/p>\n<p><span style=\"font-size: 12pt;\">[1] See chart on page 7, \u201cThe Profit and Growth Consequences of Creating Blue Oceans.\u201d<\/span><br \/>\n<span style=\"font-size: 12pt;\">[2] See chart on page 123, \u201cThe Buyer Experience Cycle.\u201d<\/span><\/p>\n<h4 style=\"text-align: center;\"><span style=\"color: #ff0000; font-size: 14pt;\"><strong>______<\/strong><\/span><\/h4>\n<p><span style=\"font-size: 14pt;\">Don\u2019t ruin your career by hosting <a href=\"https:\/\/mgrush.com\/blog\/bad-meetings\/\">bad meetings<\/a>. Sign up for a <a href=\"https:\/\/mgrush.com\/public-facilitation-training\/\" target=\"_blank\" rel=\"noopener\">workshop<\/a> or send this to someone who should. <em><a href=\"https:\/\/web.archive.org\/web\/20260106090117\/https:\/\/mgrush.com\/\">MGR<span style=\"font-size: 12pt;\">USH<\/span><\/a><\/em> workshops focus on meeting design and practice. Each person practices tools, methods, and activities every day during the week. Therefore, while some call this immersion, we call it the road to building high-value facilitation skills.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The MGRUSH\u00a0technique encourages different approaches based on whether your project is seeking incremental gain or requires real breakthroughs. Blue Ocean Strategy\u00a0promotes breakthrough thinking, justified by the higher profits such thinking generates among companies studied by its authors, Kim and Mauborgne.[1] The authors note the failures of companies over the past fifteen to twenty years\u2014since the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5824,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_wp_convertkit_post_meta":{"form":"-1","landing_page":"","tag":"0","restrict_content":"0"},"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[453185951],"tags":[491439,15582,453190629,453192147,453190630],"class_list":["post-124","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-leadership-skills","tag-blue-ocean-strategy","tag-brainstorming","tag-breakthrough-thinking","tag-catalyst-product-innovation-method","tag-innovation"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.7 (Yoast SEO v27.7) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Blue Ocean Strategy: Create Uncontested Market Space<\/title>\n<meta name=\"description\" content=\"Use different approaches based on whether your project is seeking incremental gain or real breakthrough. 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