Creating Blue Oceans

Protects Like Armor, Fits Like Armani

When companies are willing to challenge the functional-emotional orientation of their industry, they often find new market space (Blue Ocean Strategy, p 70).

Is your bulletproof vest weighing you down? Are you tired of the extra bulk giving you that not so fashionable appearance? Our colleagues over at Business 2.0 recently reported on an innovation which is likely to change all that.

Using special materials, Miguel Caballero of Bogota, Columbia, has created a new type of armored clothing which fits like Armani yet protects the wearer from point blank gunfire. “The first bulletproof leather jacket he created weighed 11 pounds. Today, the same garment with the new material weighs just 2.6 pounds.”

In Blue Ocean Strategy style Caballero’s designs have challenged the industry functional-emotional appeal. His designs are already popular with high-ranking officials in the region and his soon-to-open boutique store in Mexico will sit alongside such high-end brand name stores as Armani, Cartier, Louis Vuitton and Tiffany.

Defying Conventional Wisdom: Herring Power

Blue Ocean Strategy is all about challenging conventional wisdom – questioning taken-for-granted assumptions, and overstepping industry boundaries. It’s a frame of mind of continuously questioning and searching for a different angle and fresh perspective. You can draw inspiration from everyday life, and train your mind by having a discerning view of the world around you. Consider the following bits of comic insight, as examples of challenging conventional wisdom.

Herringpower
Horsepower seems a logical measure of thrust for machines of land transport. You can visualize “220” horses pulling a car at high speeds. But with boats such visual association doesn’t hold up. A bunch of horses swimming along and tugging a speedboat behind them doesn’t seem to provide much glide or acceleration. It would be much more appropriate to reference some aquatic animal as the performance basis for sea craft engines, as in “tuna”, or “herringpower.” 

Get The Scoop With The Weekly Innovation Roundup

It's Friday and that means it's time to share with you a few of our favorite stories from the Business Innovation Insider:

Decide to do something that will probably fail

Pictures of the Future at Siemens

The death of the billable hour

Best Buy's Blue Shirts

The innovators of MySpace

Can Coffee Cure Cellulite?

Ladies, slip on a pair of Slim Fit 20 pantyhose and you may just be able to skip that dreaded trip to the gym. Our colleagues over at Business 2.0 have uncovered an innovation which will get you percolating.

Austrian firm Palmers has developed a unique pantyhose that, unlike others which contain aloes and chemicals more for soothing the skin, contains liquid caffeine. When activated by body heat the caffeine actually works to boost metabolism and burn fat, thus reducing the appearance of cellulite.

Slim Fit 20 pantyhose is a fitting example of a Blue Ocean Strategy, where two, separate, mature and oftentimes overlooked market segments have been interwoven to create an entirely new market space. That being said, however, one can’t help but wonder if these new hose will eventually be made in various coffee-related flavours or if they will be stocked at your local Starbucks. Might mochaccino pantyhose be just around the corner from you?

Life is Good at LG

Continuing to demonstrate that its implementation of Blue Ocean Strategy is what’s making life good over at LG Electronics, the Korean giant announced a 20% growth in sales in the first half of 2006, as compared to the same period last year.

Earlier in the year we reported on LG’s healthy 2005 profits and its plan for 2006.

In a recent statement LG Electronics’ president, MEA, K. W. Kim said:

We are on track to achieve and even surpass our 2006 sales target of US$2.7 billion.

Our aggressive implementation of the ‘blue ocean’ management strategy, combined with our continuous emphasis on technological and design innovation, is one of the main factors for this unprecedented growth.

LG’s creation of new products which enrich the lifestyles of its consumers, including its new Chocolate Phone, as well as an emphasis on design, has helped it to capture the attention of the public eye. What other LG innovations and practices are helping to contribute to its overall Blue Ocean Strategy?  Share your ideas with us.

Keeping You Up To Speed With The Weekly Innovation Roundup

Keeping you up to speed with the latest news in Innovation, here's the Weekly Roundup from the Business Innovation Insider:

Ford Motor Company looking for women designers to create innovative new cars

What is the future of marketing?

High oil prices don't scare Jet Blue

The Innovation Killer

10 questions with Seth Godin

Riding Blue On The Back Of A Harley

Harley Davidson’s Blue Ocean Strategy is all about “fulfilling dreams through the experience of motorcycling.” And anyone who’s ever seen a parade of these hog enthusiasts rumble through the streets can bear witness to that. Just how has Harley-Davidson saddled up with a winning strategy?

• In 1987, Harley-Davidson makes both business and American history. Harley-Davidson petitions the International Trade Commission for early termination of the five-year tariffs on heavyweight motorcycles. In effect, the move demonstrated confidence in Harley-Davidson's ability to compete in the marketplace. Harley-Davidson also listed on the NYSE.
• In 2003, 250,000 people come to Harley-Davidson 100th anniversary celebration.
• 2005 results: 20th consecutive year of revenue increase, with consolidated revenue of US$ 5.3 billion.
• Three strategic constants: Passion, Sense of Purpose, Operational Excellence.
• All new bikes are customizable.
• Harley Owner’s Group (HOG) has one million members worldwide.

Blue Ocean Strategy and Harley-Davidson:

• No competition, as seen by being only U.S. manufacturer for 46 years, and petition to end protective tariffs.
• All bikes are customizable, and some say that they are made to be tinkered with (not as hands-off as can be, therefore redefining premium brand).
• Huge fan club and a phenomenally powerful brand (it is a quintessential Lovemark), strong emotional connection.

Meanwhile, we’ll continue our debate over which is better: the Sportster model or the Touring model. If you’d like to weigh in on that feel free to get in touch with us at the email address above.

Shifting gears towards the Idea Class

BWM is long known for its specific focus on upscale auto enthusiasts who treasure what’s under the hood. However a recent article points out that BMW in America is seeking to capture an entirely new market known as the Idea Class. “BMW's shift in direction began last year, after an internal study revealed 1.9 million consumers bought luxury cars in 2004, and 1.4 million of them didn't even consider BMW.”

And just who exactly makes up this illustrious Idea Class? BMW says that it consists of “self-motivated architects, professionals, innovators and entrepreneurs, and [in the United States] numbers about 1.5 million people. They typically are not car nuts although they buy luxury automobiles. They prize innovation, authenticity and, above all, independent thinking.”

Could BMW’s approach be a Blue Ocean Strategy in the making, especially as it seeks to enrich the lives of the Idea Class? What traditional factors of competition must BMW rearrange in order to create that necessary leap in customer value? Share your ideas with us.

It's Time For The Weekly Innovation Roundup

Just the right dose of Innovation highlights from the Business Innovation Insider:

Branded immersive environments inside of virtual worlds

Expanding the innovation horizon

50 lessons on innovation

Conversations with innovative CEOs and entrepreneurs

Highlights from the Brainstorm event in Aspen

Sharks Love Fresh Meat

Here at creatingblueoceans.com we are delighted to continue receiving contributions from Blue Ocean Strategy enthusiasts. Although quite different in scope, each reflects an interesting angle about Blue Ocean Strategy, Value Innovation and related topics.

Our most recent contribution comes from Michael Davis of Byvation. In his article “Sharks Love Fresh Meat” Mr. Davis suggests that sharks make the rules in business and in the ocean, and to make the mistake of swimming with the seals, or going with the status quo, can be deadly:

In nature, the strong prey on the weak! Lions prey on sick, weak, and slow animals. Sharks strike seals who swim too slow or lose focus. Crocodiles will snatch a bird falling from a tree. Hyenas will team up to take down large animals. Fresh Meat is irresistible.

Business is the same. Weak competitors will be attacked. The lure of acquiring new customers, talent, intellectual property, and other valuable resources is irresistible. Blue Ocean Strategy, with its Strategic Canvas, is an essential tool in staking out new territory which allows one to swim away from the seals.

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We welcome contributions to the site, whether it be an article you have written or a direct comment. Do you see ways in which you might be able to get involved with the Blue Ocean Strategy community? Get in touch with Gabor George Burt via the email address above and share your ideas.