Quotes About Strategy

Get focused on (..) understanding how to deliver a leap in value to buyers

Our research reveals that most companies' strategic planning process keeps them wedded to red oceans. The process tends to drive companies to compete within existing market space.

The first involves streamlining operations and introducing cost innovations from manufacturing to distribution.

To maximize the size of their blue oceans, companies need to take a reverse course. Instead of concentrating on customers, they need to look to noncustomers. And instead of focusing on customer differences, they need to build on powerful commonalities in what buyers value.

Focus, divergence, and a compelling tagline. Without these qualities, a company's strategy will likely be muddled, undifferentiated, and hard to communicate with a high cost structure.

In this way, blue ocean strategy makes sense of the strategic paradox many organizations face: the more they focus on coping with the competition, and striving to match and beat their advantages, the more they ironically tend to look like the competition. To which blue ocean strategy would respond, stop looking to the competition. Value-innovate and let the competition worry about you.

Los innovadores de valor buscan ideas de éxito y saltos sustanciales en valor, sin que les importe demasiado cómo le va al sector.

Identify where the mass of target buyers is and what prices these buyers are prepared to pay for the products and services they currently use.

Unlike the practice of conventional technology innovators, value innovation is based on a win-win game among buyers, companies, and society.

no debemos permitir que lo que podemos hacer ahora condicione nuestro punto de vista sobre lo que se necesita hacer para ganar mañana. Nuestro enfoque es de pizarra limpia».

Value innovation is not the same as technology innovation.

At the same time, by eliminating many of the most costly elements of the circus, it dramatically reduced its cost structure, achieving both differentiation and low cost. Cirque strategically priced its tickets against those of the theater, lifting the price point of the circus industry by several multiples while still pricing its productions to capture the mass of adult customers, who were used to theater prices.

With your blue ocean move chosen, and its market potential confirmed, it's time to formalize your business model.

To produce a high-performing and sustainable blue ocean strategy, you need to ask the following questions. Are your three strategy propositions aligned in pursuit of differentiation and low cost? Have you identified all the key stakeholders, including external ones on which the effective execution of your blue ocean strategy will depend? Have you developed compelling people propositions for each of these to ensure they are motivated and behind the execution of your new idea?

strategy canvas, four actions framework, and six paths to reconstruct market boundaries—bring structure to what has historically been an unstructured problem in strategy, informing organizations' ability to create blue oceans systematically.

Companies with a diverse portfolio of businesses, such as Apple, General Electric, Johnson & Johnson, or Procter & Gamble, will always need to swim in both red and blue oceans at a given point in time and succeed in both oceans at the corporate level. This means that understanding and applying the competition-based principles of red ocean strategy are also needed.

There are two ways to create blue oceans. In a few cases, companies can give rise to completely new industries, as eBay did with the online auction industry. But in most cases, a blue ocean is created from within a red ocean when a company alters the boundaries of an existing industry.

strategy perforce becomes a zero-sum game where one company's gain is another company's loss

The key to tipping point leadership is concentration, not diffusion

Strategy is heavily influenced by its roots in military strategy. The very language of strategy is deeply imbued with military references— chief executive "officers" in "headquarters," "troops" on the "front lines." Described this way, strategy is all about red ocean competition. It is about confronting an opponent and driving him off a battlefield of limited territory.

Strategic move will be well placed to create multiple blue oceans over time, thereby continuing to deliver high growth and profits over a sustained period.

It is not enough to maximize the size of the blue ocean you are creating. You must profit from it to create a sustainable win-win outcome.

Today, one hardly talks about strategy without using the language of competition.

This is not to suggest that companies will suddenly stop competing or that the competition will suddenly come to a halt. On the contrary, the competition will be more present and will remain a critical factor of market reality. As captured on the dynamic PMS map, red ocean and blue ocean strategies are complementary strategic perspectives, with each serving different and important purposes.