Index
Accenture, 134
adoption hurdles, 119
advertising, outdoor, 107-109
airlines
NetJets, 50-52, 135
Southwest, 35, 38-41, 131, 187
Virgin Atlantic Airways, 126
Altair 8800, 200
alternative industries, 49-55
ALTO, 130
American Multi-Cinema, Inc. (AMC),
206, 207, 208
analysis, units of, 9-12
company as, 9-10
industry as, 10
strategic move as, 10-12
analytical tools/frameworks, 23-44
blue ocean idea (BOI) index, 139-143
buyer utility map, 121, 125
eliminate-reduce-raise-create grid,
35-37
four actions framework, 29-35
pioneer-migrator-settler map, 96-98
price corridor of the mass, 127-131
six paths framework, 47-48, 79
strategy canvas, 25-28, 37-44
value curve, 27
angels, 166, 167-168
Apple Computer, Inc., 76-78, 200-201
assumptions, 48-49, 91
buyer utility and, 120
atomization, 164-165
attitudes, 171-184
automobile industry, 193-197
Chrysler in, 196-197
Ford Model T in, 124-125, 129, 132,
193-194
General Motors in, 194-195
Japanese cars in, 195-196
Barnes & Noble, 69
benchmarks, 12, 27-28
Berkshire Hathaway, 50
Big Bertha golf club, 102-103
big picture, the, 81-99
focusing on, 82-83
Blockbuster, 135
Bloomberg, 63-64, 88,130
Bloomberg, Michael, 88
blue ocean idea (BOI) index, 139-143
blue oceans
automobile industry as, 193-197
computer industry as, 197-203
creating, 3-22
definition of, 4
effects of creating, 7-8
history of, 5-7,191-208
blue oceans (continued)
imperative of creating, 8
maximizing the size of, 101-114
movie theater industry as, 203-208
as new market space, 4-5
strategy in, 19-22
sustainability of, 185-190
units of analysis with, 9-12
value innovation to create, 12-18
The Body Shop, 70,186,189
Borders, 69
Boston Police District 4, 155
boundaries
industry, 4-5
market, 47-80
reconstructing, 47-80
brand recognition, 214-215
brands
building, 127
buzz about, 187
image conflict in, 186
lack of differentiation and, 8
loyalty to, 187
strategic pricing and, 127
Bratton, Bill, 148-150
Built to Last (Collins, Porras), 9-10
business model
Casella Wines, 34
risk of, 21
strategic sequence and, 117-143
buyers/customers. See also
noncustomers
alternatives /substitutes in choices of,
49-55
chain of buyers in, 61-65
commonalities among, 102-103, 106,
109,114-115
conduct of, 209
expectations of, 70
experience cycle of, 122, 123
functional/emotional appeals to, 69-75
influencers, 61
maximizing demand and, 101
meeting with disgruntled, 154-155
productivity of, 122
purchasers, 61
strategic pricing and, 127-131
targeting, 61-65,114-115
users, 61
visual exploration and, 88-89
buyer utility, 118, 119, 120-125
assessing, 139-143
buyer experience cycle and, 122, 123
levers of, 122, 124-125
map for, 121, 125
buyer value elements, 212
Callaway Golf, 102-103
Canon, 64
Capgemini, 134
Casella Wines, 28, 31-35, 189
CD-i, 120,140-143
Cemex, 71-74
chain of buyers, 61-65
Champion Enterprises, 60-61
change
attitudes/behavior and, 171-184
conventional wisdom on, 168-169
fair process and, 172-184
political hurdles to, 165-168
seeing the need for, 147, 151-155
visual awakening and, 84-87
Charles Schwab, 75
choice, wine industry and, 33-34
Chrysler, 196-197
circuses
Cirque du Soleil, 3-4, 13-16,18, 36-37,
40-41,212
Ringling Bros. and Barnum & Bailey,
3,4,40
Cirque du Soleil, 3-4, 212
eliminate-reduce-raise-create grid
and, 18, 36-37
price corridor of the mass and, 129
strategic profile of, 40-41
valuecost trade-off and, 13-16
Cisco Systems, 78
CNN, 78-79, 97, 186
cognitive hurdles, 147, 151-155
cold spots, 156-157, 158
Collins, Jim, 9-10
commoditization, 8
communication
through statistics, 152
visual, 93-94
Compaq, 10, 201-202
compelling taglines. See taglines,
compelling
competition. See also strategy canvas
assessing, 83
benchmarking and, 12
endurance of, 189-190
functional/emotional appeal and, 69-75
reconstructionist view of, 17-18,211 212
red oceans versus blue oceans and, 4-5
strategic pricing and, 130-131
strategic thinking and, 6-7
structuralist view of, 17
value innovation versus, 188-190
wine industry, 25
computer industry, 197-203
direct sales in, 202-203
electronic computers in, 199-200
personal computers in, 200-203
servers in, 201-202
tabulating machines in, 197-199
consiglieres, 166
consolidation, wine industry, 24
convenience, 122
convergence, 11-12
copyright, 130, 186
core capabilities, 130
cost-plus pricing, 131, 140
cost structures, 30
imitation barriers and, 186-187
strategic sequence and, 119
Creative Destruction (Foster, Kaplan), 9-10
CTR, 198-199
culture, organizational, 169, 171-184
Curves, 56-59, 127
customer productivity, 122
customers. See buyers/customers
Davis, Harry, 204
defense aerospace industry, 110-114
Dell Computer Corporation, 202-203
demand
creating, 30-35
maximizing, 101-114
technological advances and, 8
wine industry, 24-25
devils, 166, 167-168
Digital Equipment Corporation (DEC), 200
Dinkins, David, 148
Direct Line Group, 74-75
disproportionate influence factors,
150-151
atomization, 164-165
cognitive hurdles and, 152-155
kingpins, 162-164
motivation and, 161-165
resources and, 156-161
distribution, 133-134
divergence, 11-12, 37
in strategy, 39
as strategy litmus test, 41-42
DoCoMo, 52-55,141-143
DuPont, 130
Durwood, Stan, 206
Dyson, 69, 130
eBay,126,187
economies of scale, 186-187
Economist Intelligence Unit, 68
Edison, Thomas, 203
education, stakeholder, 137-139
Elco,176-181
eliminate-reduce-raise-create grid,
35-37,93
emotional appeal, 69-75
emotional recognition, 181-183
employees
atomization and, 164-165
attitudes/behavior of, 171-184
kingpins, 162-164
motivating, 148, 161-165
recognition of, 181-183
resistance of, 137-138
visual communication with, 93-94
endogenous growth, theory of, 209-210
engagement principle of fair process,
175,177-178
environmental determinism, 17, 209-212
environmental friendliness, 122
equity interests, 135
Esserman, Dean, 159
European Financial Services (EFS), 84
excellence, endurance of, 9-12, 191-192
excludability, 126-127, 213
execution. See strategy execution
expectations
buyer, 70
clarity of, principle of fair process,
176, 179
recognition and, 181-183
explanation principle of fair process,
175-176,178-179
externalities, network, 126, 187
fair process, 21-22, 164
attitudes /behavior and, 172-184
as capital, 183-184
example of, 176-181
importance of, 181
intellectual and emotional
recognition and, 181-183
power of, 174-175
principles of, 175-176
fear, 137-139, 171-172
fair process and, 171-184
financial services
Bloomberg, 63-64, 88
functional orientation in, 75
Merrill Lynch, 137
Morgan Stanley Dean Witter & Co.,
137-138
fishbowl management, 162-164
fitness industry, 56-59
focus
on the big picture, 81-99
in strategy, 39
as strategy litmus test, 41-42
target costing and, 132
in value curves, 37
Ford, Henry, 193-194. See also Ford
Model T
Ford Model T,124-125,129,132,193-194
Foster, Richard, 9-10
four actions framework, 29-35
creating factors in, 29-30
eliminating factors in, 29, 30
reducing factors in, 29, 30
free riders, 126, 127
fun, 122
functional appeal, 69-75
General Motors, 194-195
genetically modified foods, 139
globalization, 8
Hayek, Nicolas, 133
HBO, 79
health clubs, 56-57
HewlettPackard (HP), 10, 135
Hollerith, Herman, 197-198
Home Depot, the, 55, 120, 122, 132, 186
home exercise programs, 57
Honda, 195
horse trading, 156-157, 158-161
hot spots, 156-158
housing industry, 60-61
IBM, 199-200, 201
IKEA, 134
image, 122
imitation, barriers to, 185-188
industries
alternative, 49-55
boundaries of, 4-5, 128-130
functional versus emotional
orientation of, 69-75
influencers, 61
innovation. See also value innovation
Schumpeterian, 209-210, 212
technology-driven, 13
In Search of Excellence (Peters,
Waterman), 9
insulin pens, 62-63
insurance companies, 74-75
intellectual recognition, 181-183
IBM, 199-200
Internet, cell phone service over, 52-55,
141-143
Intuit, 55, 187
inventory, 34
iPod, 76-78
Iridium, 120,140, 141
iTunes, 76-78
JCDecaux, 107-109
Joint Strike Fighter (JSF) program,
110-114
Kaplan, Sarah, 9-10
Kinepolis, 89
Kinetoscope, 203
kingpins, 162-164
Laliberte, Guy, 3
leadership. See tipping point leadership
Lexus, 60
line extensions, 7-8
Literary Digest, 193
management risk, 21-22
Managing on the Edge (Pascale), 9
Maple, Jack, 157-158
market boundaries, 47-80
alternative industries and, 49-55
chain of buyers and, 61-65
complementary products/services and,
65-69
functional/ emotional appeal to buyers
and, 69-75
six paths framework and, 47-48
strategic groups within industries
and, 55-61
time/external trends and, 75-79
market dynamics, 137, 213-216
market structure, 209
Massachusetts Bay Transportation
Authority (MBTA), 154
mass markets, 194-195
Merrill Lynch, 137
Micro Instrumentation and Telemetry
Systems (MITS), 200
Microsoft, 126, 142, 187
migrators, 96-97
military language, in strategic thinking,
6-7
minivans, 196-197
monopolies, 186, 215-216
globalization and, 8
Monsanto, 139
Morgan Stanley Dean Witter & Co.,
137-138
motivation, 148, 161-165
atomization and, 164-165
kingpins and, 162-164
Motorola Iridium, 120, 140, 141
movie theater industry, 65, 89, 203-208
megaplexes in, 206-207
multiplexes in, 206
nickelodeons in, 204
Palace Theaters in, 205-206
MP3 players, 76-78
municipal bus industry, 65-68
NABI, 65-68
National Business Aviation Association,
51
National Cash Register Company,
198
NetJets, 50-52, 53, 135
network externalities, 126, 187
new growth theory, 210
New York City Police Department
(NYPD),148-150,157-158
atomization and, 165
cognitive hurdles and, 152-155
consiglieres in, 166
kingpins and, 162,163-164
political hurdles and, 166,167-168
New York City Transit Police, 153-154,
157, 158,159-161
New York Division of Parole, 159
New York Post, 148
Nickelodeons, 204
Nissan, 195
noncustomers. See also
buyers/customers
refusing (second-tier noncustomers),
103-104,107-109
soon-to-be (firsttier noncustomers),
103,104-106
targeting, 114-115
tiers of, 103-114
unexplored (thirdtier noncustomers),
104,109-114
nonrival goods, 126, 213
North America Industry Classification
Standard (NAICS), 6
Novo Nordisk, 62-63
NTT DoCoMo, 52-55, 141-143
Olsen, Ken, 200
open architecture, 201
operations, streamlining, 132-133
opportunity, maximizing, 19-22
Oracle, 134
organizational culture, 169, 171-184
organizational hurdles, 147-169
cognitive, 147, 151-155
motivation as, 148, 161-165
political, 148, 165-168
resources as, 147, 156-161
organizational risk, 21
outsourcing, 88
Palace Theaters, 205-206
partnerships
resistance and, 138
target costing and, 133-134
Pascale, Richard T., 9
patents, 130, 186
Patrimonio Hoy program, 73
performance
blue ocean creation effects on, 7-8
fishbowl management and, 162-164
strategic moves and, 11
Peters, Thomas J., 9
Pfizer, 74
Philips Electronics, 68-69
ALTO, 130
CD-1,120, 140-143
teakettle, 68-69
pioneer-migrator-settler (PMS) map,
96-98
pioneers, 96-97
planning risk, 20
politics, 148, 165-168
angels in, 166, 167-168
consiglieres in, 166
devils in, 166, 167-168
imitation barriers and, 187
Polo Ralph Lauren, 60
Porras, Jerry, 9-10
portfolio management, 97-98
Pret A Manger, 105-106
price corridor of the mass, 127-131
definition of, 130
identifying, 128-130
price selection and, 130-131
price-minus costing, 131-137
price wars, 8
pricing
models of, 134-135
setting strategic, 119, 125-131, 213-214
skimming, 215-216
strategic groups and, 56
pricing innovation
equity-interest, 135
leasing, 135
renting, 135
slice-share, 135
timeshare, 135
procedural justice, 174-175. See also fair
process
products/services
alternative versus substitute, 49-55
complementary, 65-69
profit margins, 8
profits, 7-8
innovation and maximization of,
135-136
target costing and, 131-137
value innovation and, 188-190
ProSignia, 201-202
purchasers, 61
QB (Quick Beauty) House, 70-71, 72
Quicken, 55, 187
Ralph Lauren, 60
reality, showing, 152-155
recognition, emotional and intellectual,
181-183
reconstructionist view, 17-18, 209-212
red oceans
definition of, 4
industry boundaries in, 4
strategy in, 17-18
refusing noncustomers, 103-104, 107-109
Remington Rand, 199
resistance, 137-139
business partner, 138
employee, 137-138
fair process and, 174-181
general public, 138-139
resources, 147, 156-161
cold spots and, 156-157, 158
horse trading, 156-157, 158-161
hot spots and, 156-158
monopolies and, 215-216
Reuters, 63
revenues, 7-8
Ringling Bros. and Barnum & Bailey, 3,
4,40
risk minimization, 19-22, 23
big picture focus and, 82
business model risk, 21, 117-143
management risk, 21-22
organizational risk, 21
planning risk, 20
scale risk, 20
search risk, 20, 47-80
rival goods, 126
Rothapfel, Samuel "Roxy," 205
Salick cancer centers, 69
Samsung Electronics, 94-95
SAP, 65,130, 134
AcceleratedSAP, 138
Saturday Evening Post, 204
scale risk, 20
Schumpeter, Joseph A., 209-210, 212
search risk, 20, 47-80
service industries, emotional to
functional orientation in, 74-75
settlers, 96-97
Sex and the City, 79
simplicity, 122
six paths framework, 47-48, 79
slice-share model, 135
Sloan, Alfred, 194
social welfare, 215
Sony Walkman, 60
soon-to-be noncustomers, 103, 104-106
Southwest Airlines
alternatives of, 55
divergence in, 39
focusin,39
imitation barriers and, 187
strategic pricing at, 131
strategy canvas of, 38
tagline of, 39-41
sports utility vehicles (SUVs), 196-197
stakeholders, resistance by, 137-139
Standard Industrial Classification (SIC)
system, 6
Starbucks, 74
strategic groups, 55-61
definition of, 55
ranking, 56
strategic moves, as unit of analysis,
10-12
strategic plans
failure of, 81-82
overcoming limitations of, 98-99
strategic sequence, 117-143
adoption hurdles in, 119
assessing, 119-120
buyer utility in, 118
correct,117-120
costin,119
pricing in, 119
strategy. See also blue oceans; value
innovation
assumptions in, 48-49
big picture in, 81-99
building execution into, 171-184
competition-based, 6-7
contradictions in, 43
corporate-level, 94-96
executing, 21-22
focus in, 27-28
formulating, 19-21
incoherent, 42-43
innovation and, 17
internally driven, 43
military references in, 6-7
pioneer-migrator-settler map and,
96-98
re constructionist view of, 209-212
red ocean, 6-7
red ocean versus blue ocean, 17-18
strategic profile. See value curve
strategy canvas, 25-28
structuralist view of, 17, 209
trends and, 75-79
visual awakening and, 84-87
visual exploration in, 88-90
strategy canvas, 25-28
big picture and, 82-83
corporate-level strategy and, 94-96
definition of, 25
drawing,83-94
factors in, 25-26
horizontal axis in, 25-26
presenting, 90-93
value curve in, 27
vertical axis in, 26-27
visual awakening step for, 84-87
visual communication of, 93-94
visual exploration step for, 88-90
visual strategy fairs and, 90-93
what it shows, 83
[yellow tail]'s, 32
strategy execution
attitudes/behavior and, 171-184
cognitive hurdles in, 147, 151-155
disproportionate influence factors
and, 150-151
fair process and, 172, 174-184
overcoming organizational hurdles in,
147-169
resources and, 147, 156-161
tipping point leadership in, 148-151
streamlining operations, 132-133
street furniture, 107-109
stretch goals, 152
structuralist view, 17, 209
substitutes, alternatives versus, 49-55
supply, technological advances and, 8.
See also demand
sustainability, 185-190
imitation barriers and, 185-188
Swatch, 70,133
Tabulating Machine Company (TMC),
198
taglines, compelling, 37
in strategy, 39-41
as strategy litmus test, 41-42
in visual exploration, 90
target costing, 131-137
leversin,132-135
partnerships and, 133-134
pricing models and, 134-135
teakettle industry, 68-69
technology
buyer utility and, 120
innovation and, 13
strategic pricing and, 126
supply and demand effects from, 8
telecommunications industry, 52-55,
141-143
Telerate, 63
Thibaut, John W., 174-175
time, trends and, 75-79
timeshare model, 135
Timoney, John, 166
tipping point leadership, 21
atomization and, 164-165
cognitive hurdles and, 152-155
disproportionate influence factors
and, 150-151
horse trading and, 158-161
motivation by, 161-165
at NYPD, 148-150
politics and, 165-168
resources and, 156-161
tooth whitening solutions, 109-110
Toyota,195-196
Lexus, 60
trends, looking across, 75-79
trust, cultures of, 169, 171-184, 179-180
unexplored noncustomers, 104, 109-114
UNIVAC, 199
users, 61, 88-89
utility, buyer, 119, 120-125
assessing, 139-143
buyer experience cycle and, 122, 123
levers of, 122, 124-125
valuecost trade-off, 13-16
eliminate-reduce-raise-create grid
and, 35-37
value creation
portfolio management and, 97-98
strategic sequence and, 119
value innovation versus, 12-13
value curves
characteristics of good, 36-37
compelling taglines in, 37, 39-41
definition of, 27
divergence in, 37, 39
focus in, 39, 367
monitoring, 188-190
reading, 41-44
value innovation, 12-18
definition of, 12
demand and, 101
differentiation/low cost dynamics in,
16-18
imitation barriers and, 186
market dynamics of, 137, 213-216
re constructionist view of strategy,
17-18,209-212
renewal of, 188-190
target costing and, 137
technology innovation versus, 120
value creation versus, 12-13
Value Innovation Program (VIP) Center,
95
The Vanguard Group, 75
Viagra,74
videotapes,134-135
Virgin Atlantic Airways, 126
Virgin Entertainment, 69
vision, 161
visual awakening, 84-87
visual communication, 93-94, 99
visual exploration, 88-90
visual strategy fairs, 90-93
Walker, Laurens, 174-175
Walkman, 60
Wal-Mart, 186-187
Waterman, Robert H., Jr., 9
Watson, Thomas, 198-199
Watson, Thomas, Jr., 199
Wilson, Woodrow, 193
wine industry, U.S., 24-25
creation of demand in, 30-35
strategy canvas factors in, 25-26
target market of, 34-35
value curve of, 27-28
[yellow tail] and, 28, 30-35
wireless application protocol (WAP), 55,
142
Wireless Markup Language (WML), 142
[yellow tail], 28,189
strategy canvas of, 32
value curve of, 31-32
Zeneca,69