The Path to Blue Ocean Strategy versus the Strategic Sequence
Andrew Nelson, CEO, Australia
Pat, I like your post, posing a real life case to challenge our application of Blue Ocean Strategy.
But the Strategic Sequence you mention (value, price, cost, adoption) is about the process or sequence of validating and executing your Blue Ocean Strategy rather than the process for originally devising it.
To devise what Oreck should focus on to achieve its Blue Ocean Strategy you must consider the Six Paths to commercially viable innovation and use the tools (Strategy Canvas, Buyer Experience Cycle/Utility Map) to identify the actual strategic moves Oreck should pursue.
For example, your suggestion to bundle other products with the vacuum is a possible six path innovation in the Complementary Products and Services Path. But you should explore all the Six Paths and not just settle on one innovation as that is likely to be easy to replicate.
Also, you mistake "cost" for "price". In the Strategic Sequence, cost means the underlying cost of production.
Any other comments anyone?