CLOSE

HOW CAN WE HELP YOU?

TEACHING MATERIALS

HOW CAN WE CONTACT YOU?

I am a member of the teaching faculty at an institution. I will not use any material issued to me for commercial use. I will use these materials solely for classroom teaching and understand that they are not allowed to be distributed. I recognize the intellectual property rights of all referenced companies and brands. Please accept my application for authorized faculty access.

* Error in the form

Your request has been sucessfully submitted. Thank you.

Blue Ocean Strategy Teaching Materials

Blue ocean pedagogical materials, used in 1,764 universities and 103 countries around the world, go beyond the standard case-based method, with multimedia cases as historic as the Ford Model T and as recent as Skype, helping students and executives build a deep understanding of key blue ocean strategy concepts using a variety of formats and meaningful interactive exercises.

Select by Topic

BOS MBA MINI-ELECTIVE COURSE SYLLABUS

This course is organized around the key conceptual blocks of blue ocean strategy. It employs high-impact teaching materials to ensure solid conceptual learning and a rewarding classroom experience.

To download the full MBA mini-elective syllabus, click here.

SAMPLE TEACHING MODULES

Blue Ocean Strategy Formulation: How Strategy Shapes Structure

While understanding how to compete in existing market space is important, a competitive view of strategy leaves unaddressed the critical challenge of how to redefine industry boundaries and create new market space. To learn how strategy shapes structure to create new market space, this strategy module focuses on how to reconstruct industry boundaries, how to reach beyond existing demand, how to pursue differentiation and low cost simultaneously, and how to build profitable business models to succeed in new market spaces. Under this theory of strategy, the structure of an industry is not taken as given, strategy determines structure that leads to performance consequences. This shifts the focus of strategy from a zero-sum towards a non-zero-sum paradigm.

For more detail including syllabus, click here.

Blue Ocean Strategy Implementation: Tipping Point Leadership & Fair Process in Action

This teaching module uses a rich mixture of pedagogical approaches to address blue ocean strategy implementation. The module addresses how an organization can overcome the four key hurdles blocking implementation while building trust in employees. While the challenge of execution exists whether in red or blue oceans, compared with red ocean strategy, blue ocean strategy represents a significant departure from status quo. Therefore, the execution of a divergent strategy raises the implementation bar in an organization. Here, the concepts of tipping point leadership and fair process are explored as key constructs in implementation.

This teaching module can be used to lead two MBA classes or a half-day executive program.

For more detail including syllabus, click here.

BLUE OCEAN STRATEGIC LOGIC

YELLOWTAIL: Crafting Winning Strategies in a Mature Market: The US Wine Industry in 2001

This case and accompanying theory-based movie examine the US wine industry in 2001 and the strategic move executed by [yellow tail] that made it the number one imported wine and the fastest growing brand in the history of the US and Australian wine industries.

Case Study
Teaching Note
Video & Lecture Slides

ARTICLE: Blue Ocean Strategy

Despite a long-term decline in the circus industry, Cirque du Soleil has profitably increased revenues twenty-two-fold over the last 10 years by reinventing the circus. Rather than competing within the confines of the existing industry or trying to steal customers from rivals, Cirque created an uncontested market space that made the competition irrelevant. It created what the authors call a blue ocean – a previously unknown market space. In blue oceans, demand is created rather than fought over; there is ample opportunity for growth that is both profitable and rapid. In red oceans – all the industries already in existence – companies compete by grabbing for a greater share of limited demand. As the market space gets more crowded, prospects for profits and growth decline, products turn into commodities, and increasing competition turns the water bloody. There are two ways to create blue oceans. One is to launch completely new industries, as eBay did with online auctions. But it is much more common for a blue ocean to be created from within a red ocean when a company expands the boundaries of an existing industry. In studying more than 150 blue ocean creations across over 30 industries, the authors observed that the traditional units of strategic analysis – company and industry – are of limited use in explaining how and why blue oceans are created. The most appropriate unit of analysis is the strategic move, the set of managerial actions and decisions involved in making a major market-creating business offering. Creating blue oceans builds brands. Indeed, so powerful is blue ocean strategy that a blue ocean strategic move can create brand equity that lasts for decades.

Article

ARTICLE: Value Innovation: The Strategic Logic of High Growth

Why is it that some companies succeed in achieving sustained high growth in both revenues and profits? The authors studied high growth companies – and their less successful competitors – and found a fundamental difference in the way each group approached strategy. The slow growth companies took a conventional approach in the sense that they did what most companies do: building competitive advantages dominated their strategy thinking. In contrast, the high growth companies paid little attention to matching or beating the competition. Instead they sought to make their competition irrelevant through a strategic logic the authors have come to call value innovation.

Article

PATTERNS BEHIND BLUE OCEANS

HISTORICAL MOVES: Lessons from Breakthrough Strategic Moves Over the Last Century

This case and accompanying theory-based movie examine three industries—automobiles, computers and cinema—that impact our everyday lives. How people get to work, what they use at work and where they go after work uncover patterns behind breakthrough strategic moves.

Case Study
Teaching Note
Video

STRATEGIC ALIGNMENT OF 3 BOS PROPOSITIONS

WIKIPEDIA: Making a Blue Ocean Strategic Move that Discourages Imitation

The case illustrates how the alignment of value, profit and people propositions around both differentiation and low cost makes a blue ocean strategic move very difficult to imitate. Using the strategic move of Wikipedia, this case examines the three strategy propositions for the online encyclopedia industry and how key factors from one proposition can support and reinforce the other two propositions.

Case Study
Teaching Note
Video & Lecture Slides

ZAPPOS: Bring the Shoe Store to Your Home (Part A) & Strategy Powered by Culture and People (Part B)

The first part of this two case series focuses on how Zappos reconstructed the existing boundary of online footwear retail industry with a distinctive value proposition that is neither an offline nor online shoe store in the conventional sense. The second part focuses on Zappos’s people proposition, which led to high performance and raised barriers to imitation.

Case Study A
Case Study B
Teaching Note
Video & Lecture Slides

TATA NANO: The People’s Car that Promises to Reconstruct the Automobile Industry

This case and the accompanying three-part theory-based movie describe Tata Motors’ strategic move to create and launch the Tata Nano and the successes and setbacks of the Tata Nano team in actualizing this strategic move. The case and part-one of theory-based video first review how the Tata Nano was conceived based on noncustomer insights and how a strategic price was set to capture the mass of target buyers. The case and part-two of the theory-based movie then show how the Tata Nano team complemented its compelling value proposition with a viable profit proposition by pursuing target-based costing. Finally, the case and part-three of theory-based movie examine different components of the Tata Nano’s people proposition to identify the major causes of the setback it experienced in executing the strategic move. The accompanying three-part theory-based movie, which longitudinally tracks the Tata Nano strategic move from conception to execution, is based on first-hand research and face-to-face interviews. A comprehensive teaching note also accompanies the case.

Case Study
Teaching Note
Lecture Slides

ARTICLE: How Strategy Shapes Structure

There are two types of strategy: structuralist strategies that assume that the operating environment is given and reconstructionist strategies that seek to shape the environment. In choosing which of the two is most appropriate for your organization, consider environmental attractiveness, the capabilities and resources you can call on, and whether your organization has a strategic orientation for competing or for innovating. Whichever type of strategy is chosen, success will depend on creating an aligned set of strategy propositions. The reconstructionist approach is exemplified by the cases of the city-state of Dubai, Apple’s iTunes, and the charity Comic Relief.

Article

RECONSTRUCT MARKET BOUNDARIES

CIRQUE DE SOLEIL: The Evolution of the Circus Industry (Part A) & Even a Clown Can Do It (Part B)

Cirque du Soleil entered a structurally unattractive circus industry. Yet, it was able to reinvent the industry and create a new market space by challenging the conventional assumptions about how to compete. It value innovated by shifting the buyer group from children (end-users of the traditional circus) to adults (purchasers of the traditional circus), drawing upon the distinctive strengths of other alternative industries, such as the theatre, Broadway shows and the opera, to offer a totally new set of utilities to more mature and higher spending buyers.

Case Study A
Case Study B
Teaching Note
Video Case

ZAPPOS: Bring the Shoe Store to Your Home (Part A) & Strategy Powered by Culture and People (Part B)

The first part of this two case series focuses on how Zappos reconstructed the existing boundary of online footwear retail industry with a distinctive value proposition that is neither an offline nor online shoe store in the conventional sense. The second part focuses on Zappos’s people proposition, which led to high performance and raised barriers to imitation.

Case Study A
Case Study B
Teaching Note
Video & Lecture Slides

TATA NANO: The People’s Car that Promises to Reconstruct the Automobile Industry

This case and the accompanying three-part theory-based movie describe Tata Motors’ strategic move to create and launch the Tata Nano and the successes and setbacks of the Tata Nano team in actualizing this strategic move. The case and part-one of theory-based video first review how the Tata Nano was conceived based on noncustomer insights and how a strategic price was set to capture the mass of target buyers. The case and part-two of the theory-based movie then show how the Tata Nano team complemented its compelling value proposition with a viable profit proposition by pursuing target-based costing. Finally, the case and part-three of theory-based movie examine different components of the Tata Nano’s people proposition to identify the major causes of the setback it experienced in executing the strategic move. The accompanying three-part theory-based movie, which longitudinally tracks the Tata Nano strategic move from conception to execution, is based on first-hand research and face-to-face interviews. A comprehensive teaching note also accompanies the case.

Case Study
Teaching Note
Lecture Slides

REHABILITY: The Highly Regulated German Medical Supplies Industry (Part A) & More than Just Wheelchairs (Part B)

The first part of this two-case series describes the conditions of the highly regulated medical supplies industry in Germany and shows how traditional players trapped themselves in ever intensifying and price-based competition. The second part illustrates how Rehability, a German medical supply store, created new market space in the early 1990s by asking a different set of strategic questions, shifting the focus of the industry and reconstructing market boundaries. This two-part case is accompanied by a two-part theory-based movie, which reviews industry conditions and the traditional approach of the medical supplies industry and demonstrates Rehability’s strategic move to break away from the competition and set sail towards the blue ocean. Together the theory-based movie and case are excellent for teaching both MBAs and executives how to reconstruct an industry through the six paths framework.

Case Study A
Case Study B
Teaching Note
Lecture Slides

ARTICLE: Creating New Market Space

Most companies focus on matching and beating their rivals. As a result, their strategies tend to take on similar dimensions. What ensues is head-to-head competition based largely on incremental improvements in cost, quality, or both. The authors have studied how innovative companies break free from the competitive pack by staking out fundamentally new market space–that is, by creating products or services for which there are no direct competitors. This path to value innovation requires a different mind-set and a systematic way of looking for opportunities. Instead of looking within the conventional boundaries that define how an industry competes, managers can look methodically across them. By doing so, they can find unoccupied territory that represents real value innovation. Rather than looking at competitors within their own industry, for example, managers can ask why customers make trade-offs between products or services in alternative industries. And powerful insights can thus be derived from looking at familiar data from a new perspective. Similarly value innovation opportunities can be discovered by looking across strategic groups within an industry; across buyer groups; across complementary product and service offerings; across the functional-emotional orientation of an industry; and even across time. To help readers explore new market space systematically, the authors developed a tool, the value curve, that can be used to represent visually a range of value propositions.

Article

COMMERCIAL VIABILITY OF BOS

NTT DoCoMo I-MODE(TM): Value Innovation at DoCoMo

This case describes how, in a very competitive industry engaged in a technology race and strong price erosion, NTT DoCoMo has been able to achieve superior performance when it launched its novel i-mode services in February 1999.

Case Study
Teaching Note

SKYPE in the Voice-Over-IP Industry: A Commercially Viable Blue Ocean?

This case illustrates the user experience of an avid Skype user who uses Skype’s voice and video offerings interchangeably for business and personal communication. The case illustrates the disconnect between Skype’s bifurcated pricing strategy and, along with the accompanying case exercises, prepares the participants for an engaging class discussion on what constitutes Skype’s unprecedented voice and video offering and how one could set a strategic price even though there appears to be no apparent precedents for such an offering.

Case Study
Teaching Note
Video & Lecture Slides

ARTICLE: Knowing a Winning Business Idea When You See One

Identifying which business ideas have real commercial potential is fraught with uncertainty, and even the most admired companies have stumbled.

Article

ARTICLE: Strategy, Value Innovation, and the Knowledge Economy

Kim and Mauborgne ask five key questions contrasting conventional competition-based logic with that of value innovation and describe the type of organization that best unlocks its employees’ ideas and creativity. Value innovation as strategy creates a pattern of punctuated equilibrium, in which bursts of value innovation that reshape the industrial landscape are interspersed with periods of improvements, geographic and product-line extensions, and consolidation.

Article

BLUE OCEANS IN THE B2B SPACE

SALESFORCE.COM: Creating a Blue Ocean in the B2B Space

This case describes a series of blue ocean strategic moves made by Salesforce.com in the CRM application market. In particular, the case addresses the concern of business executives over the applicability of blue ocean strategy in the B2B area. Salesforce.com’s strategic moves provide an exemplary demonstration of how a company can effectively create and renew its blue ocean in the B2B field by value innovating on the product, service and delivery platforms alternately.

Case Study
Teaching Note
Lecture Slides

FROM CUSTOMERS TO NONCUSTOMERS

GILLETTE: How a US Consumer Products Company Unlocked the Three Tiers of Noncustomers

This case and accompanying interactive presentation illustrate how new demand is created by looking to noncustomers instead of just competing for a share of the existing customers of an industry.

Case Study
Teaching Note
Interactive Case
Noncustomer Exercise

NINTENDO Wii: Lessons Learned from Noncustomers

This case illustrates that if companies wish to tap into latent demand and create organic growth, they must learn from noncustomers. Once Nintendo understood why these noncustomer groups shunned video games, they reconstructed elements across market boundaries to create a console based on simplicity, functionality, interactivity, with games that dramatically raised utility for these noncustomers.

Case Study
Video & Lecture Slides

TATA NANO: The People’s Car that Promises to Reconstruct the Automobile Industry

This case and the accompanying three-part theory-based movie describe Tata Motors’ strategic move to create and launch the Tata Nano and the successes and setbacks of the Tata Nano team in actualizing this strategic move. The case and part-one of theory-based video first review how the Tata Nano was conceived based on noncustomer insights and how a strategic price was set to capture the mass of target buyers. The case and part-two of the theory-based movie then show how the Tata Nano team complemented its compelling value proposition with a viable profit proposition by pursuing target-based costing. Finally, the case and part-three of theory-based movie examine different components of the Tata Nano’s people proposition to identify the major causes of the setback it experienced in executing the strategic move. The accompanying three-part theory-based movie, which longitudinally tracks the Tata Nano strategic move from conception to execution, is based on first-hand research and face-to-face interviews. A comprehensive teaching note also accompanies the case.

Case Study
Teaching Note
Lecture Slides

CORPORATE PORTFOLIO TODAY & TOMORROW

APPLE: How Apple’s Corporate Strategy Drove High Growth

This case introduces the application of blue ocean strategy in the context of managing business portfolios at the corporate level and its impact on the total market value of a firm. The case examines a series of blue ocean strategic moves at Apple Inc. that transformed the company from a computer manufacturer into a consumer electronics powerhouse.

Case Study
Teaching Note
Video & Lecture Slides
Press Articles

BUILDING EXECUTION INTO STRATEGY

ZAPPOS: Bring the Shoe Store to Your Home (Part A) & Strategy Powered by Culture and People (Part B)

The first part of this two case series focuses on how Zappos reconstructed the existing boundary of online footwear retail industry with a distinctive value proposition that is neither an offline nor online shoe store in the conventional sense. The second part focuses on Zappos’s people proposition, which led to high performance and raised barriers to imitation.

Case Study A
Case Study B
Teaching Note
Video & Lecture Slides

IMPLEMENTATION INTERACTIVE CLASS EXERCISE:
Tipping Point Leadership and Fair Process in Action

The case entitled, ‘How to Implement Blue Ocean Strategy’ challenges participants to apply key concepts of blue ocean strategy implementation to overcome key organizational and management hurdles while leading a strategic shift. The case is accompanied by an interactive class exercise, which requires Adobe Air.

Case
Teaching Note
Interactive Class Exercise

SIMULATION EXERCISE:
Leading the City of Los Rios into a Blue Ocean

A challenging hands-on exercise which allows participants to execute a strategic shift fast and at low cost using the key concept of tipping point leadership. Situated in the fictitious city of Los Rios in Central America. Excellent for both MBA and executive audiences.

Case
Teaching Note
Simulation

SELF DIAGNOSTIC DEVELOPMENT TOOL:
Tipping Point Leadership and Fair Process in Action

Probing questions that offer executive participants a practical tool for assessing the level of organizational hurdles that exist in their organization and the effectiveness of past and future strategies to overcome them.

Workbook
Teaching Note

SCENARIO CASE:
Tipping Point Leadership and Fair Process in Action

A set of interactive group scenarios which allow participants to work in teams as they learn to apply key concepts of tipping point leadership and fair process. Recommended for use with executives or MBAs with extensive work experience.

Case
Teaching Note

ARTICLE: Tipping Point Leadership

How can you lead with your hands tied? How can you generate a leap in performance when everything seems stacked against you? Think limited resources, a demoralized staff, politics, and an organization wedded to the status quo. The answer rests in applying what we call Tipping Point Leadership. The theory of tipping points, which has its roots in epidemiology, hinges on the insight that in any organization, fundamental changes can happen quickly when the beliefs and energies of a critical mass of people create an epidemic movement toward an idea. Key to unlocking an epidemic movement is concentration, not diffusion. Tipping point leadership builds on the reality that in any organization there are factors that exercise a disproportionate influence on performance. Hence, contrary to conventional wisdom, meeting a massive challenge is not about putting forth an equally massive response where gains in performance are achieved by proportional investments in time and resources. Rather it is about conserving resources and cutting time by focusing on identifying and then leveraging the factors of disproportionate influence in an organization. The key questions Tipping Point Leaders should answer are: What factors or acts exercise a disproportionately positive influence on breaking the status quo, on getting the maximum bang out of each buck of resources, on motivating employees to aggressively move forward with change, and on knocking down political roadblocks that often trip up even the best strategies? By focusing on points of disproportionate influence, tipping point leaders are able to break the performance/cost trade-off and topple the four hurdles that block a leap in performance fast and at low cost. The four hurdles are: the cognitive hurdle that blinds employees from seeing that radical change is necessary; the resource hurdle that is endemic in firms today; the motivational hurdle that discourages and demoralizes staff; and the political hurdle of internal and external resistance to change.

Article

ARTICLE: Fair Process: Managing in the Knowledge Economy

Unlike the traditional factors of production–land, labor, and capital–knowledge is a resource that can’t be forced out of people. But creating and sharing knowledge is essential to fostering innovation, and it is the key challenge of the knowledge-based economy. To create a climate in which employees volunteer their creativity and expertise, managers need to look beyond the traditional tools at their disposal. They need to build trust. The authors studied the links among trust, idea sharing, and corporate performance for more than a decade. They explored why managers of local subsidiaries so often fail to share information with executives at headquarters, and they studied the dynamics of idea sharing in product development teams, joint ventures, supplier partnerships, and corporate transformations. They offer an explanation for why people resist change even when it would benefit them directly. In every case, the decisive factor is what the authors call fair process–fairness in the way that a company makes and executes decisions. The elements of fair process are simple: Engage people in decisions that directly affect them, explain why decisions are made the way they are, and clarify what will be expected of them after the changes are made.

Article

OVERCOMING EXECUTION HURDLES

SCENARIO CASE:
Tipping Point Leadership and Fair Process in Action

A set of interactive group scenarios which allow participants to work in teams as they learn to apply key concepts of tipping point leadership and fair process. Recommended for use with executives or MBAs with extensive work experience.

Case
Teaching Note

ARTICLE: Tipping Point Leadership

How can you lead with your hands tied? How can you generate a leap in performance when everything seems stacked against you? Think limited resources, a demoralized staff, politics, and an organization wedded to the status quo. The answer rests in applying what we call Tipping Point Leadership. The theory of tipping points, which has its roots in epidemiology, hinges on the insight that in any organization, fundamental changes can happen quickly when the beliefs and energies of a critical mass of people create an epidemic movement toward an idea. Key to unlocking an epidemic movement is concentration, not diffusion. Tipping point leadership builds on the reality that in any organization there are factors that exercise a disproportionate influence on performance. Hence, contrary to conventional wisdom, meeting a massive challenge is not about putting forth an equally massive response where gains in performance are achieved by proportional investments in time and resources. Rather it is about conserving resources and cutting time by focusing on identifying and then leveraging the factors of disproportionate influence in an organization. The key questions Tipping Point Leaders should answer are: What factors or acts exercise a disproportionately positive influence on breaking the status quo, on getting the maximum bang out of each buck of resources, on motivating employees to aggressively move forward with change, and on knocking down political roadblocks that often trip up even the best strategies? By focusing on points of disproportionate influence, tipping point leaders are able to break the performance/cost trade-off and topple the four hurdles that block a leap in performance fast and at low cost. The four hurdles are: the cognitive hurdle that blinds employees from seeing that radical change is necessary; the resource hurdle that is endemic in firms today; the motivational hurdle that discourages and demoralizes staff; and the political hurdle of internal and external resistance to change.

Article

ARTICLE: Fair Process: Managing in the Knowledge Economy

Unlike the traditional factors of production–land, labor, and capital–knowledge is a resource that can’t be forced out of people. But creating and sharing knowledge is essential to fostering innovation, and it is the key challenge of the knowledge-based economy. To create a climate in which employees volunteer their creativity and expertise, managers need to look beyond the traditional tools at their disposal. They need to build trust. The authors studied the links among trust, idea sharing, and corporate performance for more than a decade. They explored why managers of local subsidiaries so often fail to share information with executives at headquarters, and they studied the dynamics of idea sharing in product development teams, joint ventures, supplier partnerships, and corporate transformations. They offer an explanation for why people resist change even when it would benefit them directly. In every case, the decisive factor is what the authors call fair process–fairness in the way that a company makes and executes decisions. The elements of fair process are simple: Engage people in decisions that directly affect them, explain why decisions are made the way they are, and clarify what will be expected of them after the changes are made.

Article