# Blue Ocean Strategy Worksheet

## Overview
Blue Ocean Strategy is about creating new market spaces (blue oceans) rather than competing in existing markets (red oceans). It focuses on creating and capturing new demand through value innovation - the simultaneous pursuit of differentiation and low cost.

## Pre-Strategy Assessment

**Company/Product:** _________________________________
**Current Industry:** _________________________________
**Date:** _____________
**Team Members:** _________________________________

## Part 1: Current State Analysis (Red Ocean)

### Industry Overview
**Main Competitors:**
1. _________________________________
2. _________________________________
3. _________________________________
4. _________________________________
5. _________________________________

**Basis of Competition:**
- [ ] Price
- [ ] Quality
- [ ] Features
- [ ] Service
- [ ] Brand
- [ ] Other: _____________

**Industry Characteristics:**
- Market Size: $_____________
- Growth Rate: ____%
- Profit Margins: ____%
- Customer Satisfaction: _____________

## Part 2: Strategy Canvas

### Step 1: Identify Key Competing Factors
List 6-12 factors that the industry currently competes on:

1. _________________________________
2. _________________________________
3. _________________________________
4. _________________________________
5. _________________________________
6. _________________________________
7. _________________________________
8. _________________________________
9. _________________________________
10. _________________________________

### Step 2: Rate Current Offerings (1-10 scale)

| Competing Factor | Your Company | Competitor 1 | Competitor 2 | Industry Average |
|------------------|--------------|--------------|--------------|------------------|
| 1. | | | | |
| 2. | | | | |
| 3. | | | | |
| 4. | | | | |
| 5. | | | | |
| 6. | | | | |
| 7. | | | | |
| 8. | | | | |

## Part 3: Four Actions Framework

### ELIMINATE
*Which factors that the industry takes for granted should be eliminated?*

1. _________________________________
   - Why: _________________________________
   - Impact: _________________________________

2. _________________________________
   - Why: _________________________________
   - Impact: _________________________________

3. _________________________________
   - Why: _________________________________
   - Impact: _________________________________

### REDUCE
*Which factors should be reduced well below the industry standard?*

1. _________________________________
   - Current Level: _____  Target Level: _____
   - Rationale: _________________________________

2. _________________________________
   - Current Level: _____  Target Level: _____
   - Rationale: _________________________________

3. _________________________________
   - Current Level: _____  Target Level: _____
   - Rationale: _________________________________

### RAISE
*Which factors should be raised well above the industry standard?*

1. _________________________________
   - Current Level: _____  Target Level: _____
   - Rationale: _________________________________

2. _________________________________
   - Current Level: _____  Target Level: _____
   - Rationale: _________________________________

3. _________________________________
   - Current Level: _____  Target Level: _____
   - Rationale: _________________________________

### CREATE
*Which factors should be created that the industry has never offered?*

1. _________________________________
   - Description: _________________________________
   - Value to Customer: _________________________________

2. _________________________________
   - Description: _________________________________
   - Value to Customer: _________________________________

3. _________________________________
   - Description: _________________________________
   - Value to Customer: _________________________________

## Part 4: Six Paths to Blue Ocean

### Path 1: Look Across Alternative Industries
**Question:** What alternative industries solve the same problem?

**Alternatives Identified:**
1. _________________________________
2. _________________________________
3. _________________________________

**Insights:** _________________________________

### Path 2: Look Across Strategic Groups
**Question:** What different strategic groups exist in your industry?

**Groups:**
- High-end: _________________________________
- Mid-range: _________________________________
- Low-end: _________________________________

**Opportunity:** _________________________________

### Path 3: Look Across the Chain of Buyers
**Question:** Who are all the buyers in the chain?

- Purchasers: _________________________________
- Users: _________________________________
- Influencers: _________________________________

**Untapped Buyer Group:** _________________________________

### Path 4: Look Across Complementary Products/Services
**Question:** What happens before, during, and after your product is used?

**Before:** _________________________________
**During:** _________________________________
**After:** _________________________________

**Integration Opportunity:** _________________________________

### Path 5: Look Across Functional or Emotional Appeal
**Current Industry Orientation:**
- [ ] Functional (utility, price, efficiency)
- [ ] Emotional (feelings, status, lifestyle)

**Opportunity to Switch:** _________________________________

### Path 6: Look Across Time
**Question:** What trends are clear trajectories?

**Key Trends:**
1. _________________________________
2. _________________________________
3. _________________________________

**Future Opportunity:** _________________________________

## Part 5: Target Market - Three Tiers of Noncustomers

### First Tier: "Soon-to-be" noncustomers
*People who minimally use current offerings while looking for alternatives*

**Who they are:** _________________________________
**Why they're looking elsewhere:** _________________________________
**What would bring them back:** _________________________________

### Second Tier: "Refusing" noncustomers
*People who consciously choose against your market*

**Who they are:** _________________________________
**Why they refuse:** _________________________________
**What would attract them:** _________________________________

### Third Tier: "Unexplored" noncustomers
*People who have never considered your market as an option*

**Who they are:** _________________________________
**Why they haven't considered it:** _________________________________
**What would open their eyes:** _________________________________

## Part 6: Value Innovation Design

### New Value Proposition
**In one sentence:** _________________________________

### Value for Customers
- **Eliminated Pain Points:**
  1. _________________________________
  2. _________________________________
  
- **New Benefits Created:**
  1. _________________________________
  2. _________________________________
  
- **Simplified Experience:**
  1. _________________________________
  2. _________________________________

### Cost Structure Innovation
- **Eliminated Costs:**
  1. _________________________________ Savings: $_____
  2. _________________________________ Savings: $_____
  
- **Reduced Costs:**
  1. _________________________________ Savings: $_____
  2. _________________________________ Savings: $_____
  
- **New Investment Required:**
  1. _________________________________ Cost: $_____
  2. _________________________________ Cost: $_____

**Net Impact:** $_____

## Part 7: Blue Ocean Idea Testing

### Exceptional Utility
- [ ] Does it offer exceptional utility to buyers?
- [ ] Is there a compelling reason to buy?
- [ ] Does it address major pain points?

### Strategic Pricing
- [ ] Is the price accessible to target buyers?
- [ ] Does it attract the mass of buyers?
- [ ] Is it hard for competitors to match?

### Cost Target
- [ ] Can you hit your cost target?
- [ ] Can you profit at the strategic price?
- [ ] Is the business model sustainable?

### Adoption Hurdles
- [ ] Have you addressed employee concerns?
- [ ] Have you addressed partner concerns?
- [ ] Have you addressed societal concerns?

## Part 8: Implementation Roadmap

### Phase 1: Pilot (Months 1-3)
- [ ] _________________________________
- [ ] _________________________________
- [ ] _________________________________

### Phase 2: Launch (Months 4-6)
- [ ] _________________________________
- [ ] _________________________________
- [ ] _________________________________

### Phase 3: Scale (Months 7-12)
- [ ] _________________________________
- [ ] _________________________________
- [ ] _________________________________

### Phase 4: Defend (Year 2+)
- [ ] _________________________________
- [ ] _________________________________
- [ ] _________________________________

## Success Metrics

| Metric | Target | Timeline |
|--------|--------|----------|
| New Customer Acquisition | | |
| Market Share | | |
| Customer Satisfaction | | |
| Profit Margin | | |
| Revenue Growth | | |

## Risk Management

**Potential Risks:**
1. Risk: _________________________ Mitigation: _________________________
2. Risk: _________________________ Mitigation: _________________________
3. Risk: _________________________ Mitigation: _________________________

## Example: Cirque du Soleil

**Traditional Circus Industry (Red Ocean):**
- Star performers
- Animal shows
- Multiple show arenas
- Aisle concession sales
- Low price

**Cirque du Soleil (Blue Ocean):**
- **Eliminated:** Animals, star performers, multiple arenas
- **Reduced:** Fun and humor, thrill and danger
- **Raised:** Unique venue, refined environment
- **Created:** Theme, theatrical environment, artistic music and dance

**Result:** Created new market space between circus and theater, commanding premium prices while reducing costs.

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*Strategy Development Date:* _____________
*Review Date:* _____________
*Strategy Champion:* _____________