Value vectors =
Evolving strategic positions
The parity points change over time. Customers become more confident and more demanding the more they know the brand/concept and the more competitors offering there are.
Sometimes, there is saturation (no difference in performance in the market/max performance reached) so companies need to compete on price or relations
Innovate New Value for Customers:
Customers
- Expand the market potential by stretching the market boundaries to serve other needs of current customers.
- Meet the needs of those who are not currently buying anything in the category (non-consumers).
- Find new customers by satisfying unmet or latent needs.
- Penetrate new geographies.
Offering
- Develop new core products or services that serve new and existing customers.
- Create integrated solutions that save customers’ time and/or money, reduce customer risk, or enable customers to make more money.
- Redesign the customer experience across all touchpoints.
- Extend the brand into new domains (see Imperative 4).
Competitive profile
- Reconfigure the competitive profile by eliminating, reducing, increasing, or adding key aspects of the offering relative to the prevailing industry standards.
Examples of new value for customers:
- Sainsbury’s bike one-hour delivery
- Amazon UK launches try before you buy (Prime wardrobe deliver 3 to 8 pieces of clothing free of charge)
- EasyJet targets business travellers with new perks
- Budget flights are here for the long haul (London-New York for £99 with Wow Air)
- Cirque Du Soleil: Blending of opera and ballet with circus format while eliminating star performer and animals
- Wii:Rather than releasing a more technologically advanced video game console with more features as in previous generations, Nintendo released a console with innovative controls made to attract populations that are typically excluded from the target demographic for video games, such as the elderly.
Steve Jobs quote:
Red Ocean VS Blue Ocean graph:
Red Ocean VS Blue Ocean tables:
The buyer utility map:
- “Right to repair”
- IKEA bought TaskRabbit
- IKEA to launch its products online and in in-town locations
What consumers value by industry:
Value and Customer experience map:
Blue Ocean Actions framework:
Cirque du Soleil ERRC (Eliminate-Reduce-Raise-Create) Grid:
Why Amazon Fire Phone and Google Glasses didn’t work?
Amazon Fire Phone
They wanted to “control” the market. They saw the mobile business opportunities (Apple/Google/FB control what you see, they dictate your tastes)
They made a product customers didn’t want/need. Customers might have perceived the phone as cheap because of the price, lack of advertising, and because Amazon is not fully a tech company
Google Glasses
They missed what consumers wanted and had the pricing wrong ($1,500)
