In order to understand this path let us first understand difference between substitute and alternative: The first path in formulating the blue ocean strategy is to find the alternative industries to your industry’ One of the biggest limitations we put on our organization is to assume that our products/services compete in a defined and unchanging industry with a very narrow view of the environment. Organizations compete not only within the industries but also with organizations in other industries which produce alternative product and services to their industry. Path 1: Look across alternative industries It propels users to action by reorienting their focus from competitors to alternatives and from customers to noncustomers of the industry and allows you to visualize how a blue ocean strategic move breaks away from the existing red ocean reality.6 paths framework blue ocean strategy Following are the six paths framework involved in formulating the blue ocean strategy.It captures the current state of play in the known market space, which allows users to clearly see the factors that an industry competes on and invests in, what buyers receive, and what the strategic profiles of the major players are.Importantly, it creates a commonly owned baseline for change. It exposes just how similar the players’ strategies look to buyers and reveals how they drive the industry toward the red ocean. The strategy canvas allows your organization to see in one simple picture all the factors an industry competes on and invests in, what buyers receive, and what the strategic profiles of the major players are. The horizontal axis on the strategy canvas captures the range of factors that an industry competes on and invests in, while the vertical axis captures the offering level that buyers receive across all of these key competing factors.Ī value curve or strategic profile is the graphic depiction of a company’s relative performance across its industry’s factors of competition.
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