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

    Index - 图1