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Blue Ocean Strategic Moves

Philips

Philips’ blue ocean strategic move in the teakettle industry is an example of looking across complementary product and service offerings, path four in the six paths framework.

Despite its importance to British culture, the British teakettle industry had flat sales and shrinking profit margins until Philips Electronics, the Dutch consumer electronics company, came along with a teakettle that turned the red ocean blue.

By thinking in terms of complementary products and services, Philips saw that the biggest issue the British had in brewing tea was not in the kettle itself but in the complementary product of water, which had to be boiled in the kettle. The issue was the limescale found in tap water. The limescale accumulated in kettles as the water was boiled, and later found its way into the freshly brewed tea. The phlegmatic British typically took a teaspoon and went fishing to capture the off-putting limescale before drinking home-brewed tea. To the kettle industry, the water issue was not its problem. It was the problem of another industry—the public water supply.

By thinking in terms of solving the major pain points in customers’ total solution, Philips saw the water problem as its opportunity. The result: Philips created a kettle with a mouth filter that effectively captured the limescale as the water was poured. Limescale would never again be found swimming in British home-brewed tea. The industry was kick-started on a strong growth trajectory as people began replacing their old kettles with the new filtered kettles.

To reconstruct market boundaries and create new market space, think about applying path four of blue ocean strategy’s six paths framework. It drives you to look across complementary products and service offerings to discover ways to create a leap in value.

Blue ocean strategy is based on over decade-long study of more than 150 strategic moves spanning more than 30 industries over 100 years. The research of W. Chan Kim and Renée Mauborgne focused on discovering the common factors that lead to the creation of blue oceans and the key differences that separate those winners from the mere survivors and those adrift in the red ocean.

The database and research have continued to expand and grow over the last ten years since the first edition of the book was published and the strategic moves we studied depict similar patterns, whether blue oceans were created in for-profit industries, non-profit organizations, or the public sector.

Here are a few examples of blue ocean strategic moves from a variety of different industries and sectors. Select from the icons below to learn more.

    Bloomberg Financial News Case Study
    Canon Blue Ocean Strategy Case Study
    Cemex Blue Ocean Strategy Case Study
    Cirque du Soleil Blue Ocean Strategy Case Study
    Curves Blue Ocean Strategy Case Study
    Ford Model T Blue Ocean Strategy Case Study
    iTunes Blue Ocean Strategy Case Study
    JCDeaux Blue Ocean Strategy Case Study
    NetJets Blue Ocean Strategy Case Study
    Novo Nordisk Blue Ocean Strategy Case Study
    New York Police Department Blue Ocean Strategy Case Study
    Peirce College Blue Ocean Strategy Case Study
    Philips Blue Ocean Strategy Case Study
    QBHouse Blue Ocean Strategy Case Study
    Quicken Blue Ocean Strategy Case Study
    Polo Ralph Lauren Blue Ocean Strategy Case Study
    Viagra Blue Ocean Strategy Case Study