According to Kim and Mauborgne (2005) a BOS will only work if itís formulated in the right strategic sequence. Without fulfilling one of these, the plan will fail. The sequence laid out by the authors is Buyer Utility, Price, Cost, and Adoption:
1. Buyer Utility. There must be substantial reasons for the public to want to purchase the products of the company before advancing to the next step within a Blue Ocean Strategy (price).
2. Price must be attractive to the customers in order for demand to increase. The right price encourages the customer to want to purchase the product and this increases the companyís presence.
3. Cost. It is important to target the majority of buyers, but also ensure the company makes a profit.
4. Adoption. Lastly and to complete the sequence, there is adoption, which is the marketing (Promotion) of the companyís ideas. The company needs to prepare itself for any rejection from the industry as customers are not easily swayed by a bargain. (...) Read more? Sign up for free