3. BlueOcean Strategy:BlueOcean Strategy: IntroIntro

4. BlueOcean Strategy:BlueOcean Strategy: Does strategy matter?Does strategy matter?
 Metrics: Revenue perMetrics: Revenue per
employeeemployee
CompanyCompany $/employee$/employee
(estimated 2007)(estimated 2007)
11 Google (16,800)Google (16,800) $1,000k$1,000k
22 Microsoft (79,000)Microsoft (79,000) $ 650k$ 650k
33 IBM (355,000)IBM (355,000) $257k$257k
44 Infosys (88,600)Infosys (88,600) $50k$50k
55 Virtusa (3,000)Virtusa (3,000)
www.virtusa.comwww.virtusa.com
$35k$35k
66 Avg. UA outsourcingAvg. UA outsourcing $20-$40k$20-$40k
77 Foliage Software (100)Foliage Software (100)
www.foliage.comwww.foliage.com
$200k$200k

5. BlueOcean Strategy:BlueOcean Strategy: IntroIntro
What are Red and Blue Ocean Strategies?
Red Ocean Strategy Blue Ocean Strategy
Compete in existing market space Create uncontested market space
Beat the competition Make the competition irrelevant
Exploit existing demand Create and capture new demand
Make the value-cost trade-off Break the value-cost trade-off
Align the whole system of a firm’s
activities with its strategic choice of
differentiation or low cost. (Where have
we heard this?????)
Align the whole system of a firm’s
activities in pursuit of differentiation and
low-cost.
Fig. 1-3, p18

6. BlueOcean Strategy:BlueOcean Strategy: OverviewOverview
1.1. Analytical tools and frameworksAnalytical tools and frameworks
2.2. Formulating Blue Ocean StrategyFormulating Blue Ocean Strategy
3.3. Executing Blue Ocean Strategy – readExecuting Blue Ocean Strategy – read
the book.the book. 

7. BlueOcean Strategy:BlueOcean Strategy: Analytical Tools andAnalytical Tools and
FrameworksFrameworks
Analytical tools and frameworksAnalytical tools and frameworks
 Strategy Canvas – the attributes?Strategy Canvas – the attributes?
 Four Actions FrameworkFour Actions Framework

8. BlueOcean Strategy:BlueOcean Strategy: Analytical Tools andAnalytical Tools and
Frameworks -> Strategy CanvasFrameworks -> Strategy Canvas
Current situation in your business…Current situation in your business…

9. BlueOcean Strategy:BlueOcean Strategy: Analytical Tools andAnalytical Tools and
Frameworks -> Four Actions FrameworkFrameworks -> Four Actions Framework
Pushing you away from (bloody) Red Oceans!Pushing you away from (bloody) Red Oceans!

10. BlueOcean Strategy:BlueOcean Strategy: Analytical Tools andAnalytical Tools and
Frameworks -> Four Actions FrameworkFrameworks -> Four Actions Framework
So how about for the wineSo how about for the wine
industry?industry?
Eliminate
Enological terminology
and distinctions
Aging qualities
Above-the-line
marketing
Raise
Price vs. budget
wines
Retail store
involvement
Reduce
Wine complexity
Wine range
Vineyard Prestige
Create
Easy drinking
Ease of selection
Fun and adventure

11. BlueOcean Strategy:BlueOcean Strategy: Analytical Tools andAnalytical Tools and
Frameworks -> Four Actions FrameworkFrameworks -> Four Actions Framework
So how does it look now?So how does it look now?

12. BlueOcean Strategy:BlueOcean Strategy: Analytical Tools andAnalytical Tools and
Frameworks -> What to look for?Frameworks -> What to look for?
1.1. Focus.Focus. Only a few things emphasized (keep costOnly a few things emphasized (keep cost
down- company cannot do everything!)down- company cannot do everything!)
2.2. Divergence.Divergence. Just a reactive strategy – not goodJust a reactive strategy – not good
enough (same curves). Distinct curve unlike others.enough (same curves). Distinct curve unlike others.
3.3. Compelling tagline.Compelling tagline. New idea can beNew idea can be
communicated easily.communicated easily.

13. BlueOcean Strategy:BlueOcean Strategy: Formulating ->Formulating ->
Reconstruct Market BoundariesReconstruct Market Boundaries
1.1. Look across alternative industries (Yellow Tail, NetJets,Look across alternative industries (Yellow Tail, NetJets,
ConstantPrint)ConstantPrint)
2.2. Look across strategic groups within industries (Cirque.., Curves)Look across strategic groups within industries (Cirque.., Curves)
3.3. Look across the chain of buyers (Novo Nordisk (insulin), doctors-Look across the chain of buyers (Novo Nordisk (insulin), doctors-
>users)>users)
4.4. Look across complementary product and service offeringsLook across complementary product and service offerings
(Foliage: Product Strategy->Design->V1 && Outsourcing)(Foliage: Product Strategy->Design->V1 && Outsourcing)
5.5. Look across functional or emotional appeal to Buyers. (QBLook across functional or emotional appeal to Buyers. (QB
House: walk-in).House: walk-in).
6.6. Look across time: (pirated music -> iTunes)Look across time: (pirated music -> iTunes)
Other ideas: find an industry making long term good profit, pick aOther ideas: find an industry making long term good profit, pick a
suffering client segment- solve their problem. Constant Print.suffering client segment- solve their problem. Constant Print. 

14. BlueOcean Strategy:BlueOcean Strategy: Formulating -> OtherFormulating -> Other
sources…sources…
1.1. Look to non-customers. Most companies focus onLook to non-customers. Most companies focus on
existing customers, and more segmenting down.existing customers, and more segmenting down.
(Calloway and big golf club heads).(Calloway and big golf club heads).
2.2. Getting Sequence right:Getting Sequence right:
1.1. Buyer Utility Yes/NoBuyer Utility Yes/No
2.2. Price Yes/NoPrice Yes/No
3.3. Cost Yes/NoCost Yes/No
4.4. Adoption Yes/NoAdoption Yes/No

15. Constant PrintConstant Print
A Blue Ocean CaseA Blue Ocean Case

16. Constant Print:Constant Print: Meet Joe the pizza maker!Meet Joe the pizza maker!
 Over the years Joe hasOver the years Joe has
tried:tried:
 ValpakValpak
 Entertainment BookEntertainment Book
 Yellow PagesYellow Pages
 Sponsoring Little LeagueSponsoring Little League
 Flyer distributionFlyer distribution
 Free toppings, freeFree toppings, free
toppings, free toppings…toppings, free toppings…

17. Constant Print:Constant Print: Meet Joe the pizza maker!Meet Joe the pizza maker!
 What is Joe’s business?What is Joe’s business?
 Large, 2 topping: $13.75, 2Large, 2 topping: $13.75, 2
large soda’s $3.50large soda’s $3.50 
=$17.25=$17.25
 COGS ~$7.50 (marginalCOGS ~$7.50 (marginal
cost)cost)
 Revenue: $12k-Revenue: $12k-
$25k/month, about 800$25k/month, about 800
customers.customers.
 Profit/Owner Net: maybeProfit/Owner Net: maybe
$5k-$10k/month$5k-$10k/month
 How much can heHow much can he
really spend onreally spend on
marketing?marketing?

18. Constant Print:Constant Print: Meet Joe the pizza maker!Meet Joe the pizza maker!
 What does Joe look forWhat does Joe look for
from a marketing servicefrom a marketing service
 How much does itHow much does it
cost?cost?
 How much does itHow much does it
cost?cost?
 Is it going to work?Is it going to work?
 How will I know it isHow will I know it is
working?working?
 Is it like anything I triedIs it like anything I tried
before? (“Valpak didn’tbefore? (“Valpak didn’t
work!”)work!”)
 How much time is it goingHow much time is it going
to take me?to take me?

19. Constant Print:Constant Print: Joe tries Valpak (once, and $3000 later)…Joe tries Valpak (once, and $3000 later)…
Marketing Service Attributes
0
1
2
3
4
5
6
Program
Cost
Cost/im
pression
Targetability
FinancialEffectiveness
M
easureable
Cycle
Tim
e
Trackability
Service Offering Attributes
Performance
Valpak

20. Constant Print:Constant Print: Flyers! Then Joe realizes “I can do better myself”Flyers! Then Joe realizes “I can do better myself”
Marketing Service Attributes
0
1
2
3
4
5
6
Program
Cost
Cost/im
pression
Targetability
FinancialEffectiveness
M
easureable
Cycle
Tim
e
Trackability
Service Offering Attributes
Performance
Valpak
Flyer Distribution/
Direct Mail

21. Constant Print:Constant Print: Paper Ad: “But there must be another way?”Paper Ad: “But there must be another way?”
Marketing Service Attributes
0
1
2
3
4
5
6
Program
Cost
Cost/im
pression
TargetabilityFinancialEffectiveness
M
easureable
Cycle
Tim
e
Trackability
Service Offering Attributes
Performance
Valpak
Flyer Distribution/
Direct Mail
Newspaper ad

22. Constant Print:Constant Print: Restaurant.com: “This sounds different!”Restaurant.com: “This sounds different!”
Marketing Service Attributes
0
1
2
3
4
5
6
Program
Cost
Cost/im
pression
Targetability
FinancialEffectiveness
M
easureable
Cycle
Tim
e
Trackability
Service Offering Attributes
Performance
Valpak
Flyer Distribution/
Direct Mail
Newspaper ad
Restaurant.com

23. Constant Print:Constant Print: Background and InspirationsBackground and Inspirations
 VistaprintVistaprint (( www.vistaprint.comwww.vistaprint.com ))
 ConstantContactConstantContact (( www.constantcontact.comwww.constantcontact.com ))
 CompetitionCompetition (( www.valpak.comwww.valpak.com,,
www.entertainment.comwww.entertainment.com & Yellow Pages directories)& Yellow Pages directories)
 GoogleGoogle
 Tesco Supermarket Loyalty programTesco Supermarket Loyalty program

24. Constant Print:Constant Print: Nuance of Coupons.Nuance of Coupons.
 Coupons without measurement are a WASTE of $Coupons without measurement are a WASTE of $
 Local business is about RELATIONSHIPS. I give you aLocal business is about RELATIONSHIPS. I give you a
BIG coupon, ONCE to DECREASE your RISK to TRYBIG coupon, ONCE to DECREASE your RISK to TRY
my business.my business.
 Local business is about LOYALTY. It means if you areLocal business is about LOYALTY. It means if you are
loyal to a business, the business can TREAT you asloyal to a business, the business can TREAT you as
SPECIAL.SPECIAL.

25. Constant Print:Constant Print: Scalable and targetted.Scalable and targetted.
 Joes creates a collection of offersJoes creates a collection of offers
 Picks a marketing plan… Say $49/monthPicks a marketing plan… Say $49/month
 And begins farming in his neighborhood!And begins farming in his neighborhood!

26. Constant Print:Constant Print: System OverviewSystem Overview
ConstantPrint.com:
1. Register
2. Create Offers, Announcements
3. Record/Track Redemptions
4. Dashboard
5. Account Management
Print-Production Manager:
1. Register
ConstantPrint Admin:
1. Unpaid Content Management
2. Performance management
3. Customer support
Print Content Generator:
1. Optimization
2. Store “Footprint” analytics
3. Yield optimization
4. Unpaid Content Management

27. Scalable and targeted.Scalable and targeted.1. Create
campaign offers
2. Define a
community region
Constant Print:Constant Print: System OverviewSystem Overview

28. Constant Print:Constant Print:“What I really need!”“What I really need!”
Marketing Service Attributes
0
1
2
3
4
5
6
Program
C
ost
C
ost/im
pressionTargetability
FinancialEffectivenessM
easureableC
ycle
Tim
eTrackability
R
epeatC
ontact
C
om
m
unity
Support
Service Offering Attributes
Performance
Valpak
Flyer Distribution/ Direct Mail
Newspaper ad
Entertainment Book
Restaurant.com
Directory Listings
ConstantPrint

29. ENDEND
Constant Print combines digital printing, a self-service cooperative mailingConstant Print combines digital printing, a self-service cooperative mailing
model, and the power of analytics designed for the local small businessperson.model, and the power of analytics designed for the local small businessperson.
All delivered as a service designed to farm each business’ home territory andAll delivered as a service designed to farm each business’ home territory and
steadily grow a profitable customer base.steadily grow a profitable customer base.