Alternative Industries

Blue Ocean Strategy Glossary - Alternative Industries

Alternative Industries reflect the different choices buyers make across the market universe. Alternative industries embrace substitutes, that is, products and services that have different forms but the same functionality or core utility. Cars and buses, for example, are substitutes because they have the same function: going from one place to another quickly. Alternatives also embrace products and services that have different functions and forms but the same objective. For example, cinemas and restaurants are alternatives because they have neither the same form nor the same function: cinemas provide visual entertainment, while restaurants provide conversational and gastronomical pleasure. However, cinemas and restaurants have the same objective: enjoying a night out. When trying to reconstruct market boundaries, companies should look across alternative industries. This is because they are competing not only with products or services from the same industry: customers make trade-offs across offerings from alternative industries. By focusing on the key factors that lead buyers to trade across alternative industries and by eliminating or reducing everything else, a company can create a blue ocean of new market space. See Six Paths Framework.

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BOS Glossary - Adoption Hurdles

Blue Ocean Strategy Glossary - Adoption Hurdles

Adoption Hurdles are the forces that can block one from executing a Blue Ocean Strategy. These forces may come from employees, business partners, or even the general public. Employees may fear how a new strategy will impact their current responsibilities within the company. Business partners may fear being cut out or losing importance in the new strategy. The general public may see the new strategy or offering as challenging established social or political norms. As the participation of these three parties is vital to the successful execution of a Blue Ocean Strategy, a company must address these fears before implementing a new strategy. This can be done by engaging in open discussion with them, explaining why the new business idea is needed, and how it will be implemented. See Tipping Point Leadership.

Source: For more BOS glossary, visit http://www.blueoceanstrategy.com/abo/glossary.php

Louisiana's Blue Ocean

Blue Ocean Strategy Articles : Louisiana's Blue Ocean

The Advocate, Louisiana, USA, October 4, 2009
In this article Stephen Moret, the Louisiana state development secretary explains how their blue ocean strategy will set the state apart and create more jobs by offering a climate where blue ocean companies can thrive.

Source: For more Blue Ocean Strategy information, visit http://www.blueoceanstrategy.com/