Blue Ocean Strategy and BCG Market Effectiveness:

Blue Ocean Strategy:

- Industries not in existence today – the unknown market space
- Creates uncontested market space
- Makes the competition irrelevant
- Creates and Captures new demand
- Breaks the value to cost trade-off
- Simultaneous pursuit of differentiation and low cost

Principles of Blue Ocean Strategy:

- Reaches Beyond Existing demand
- Reconstruct Market Boundaries
- Focuses on bigger picture, not numbers
- Overcomes key organisational hurdles
- Builds execution strategy

BCG Attractiveness/Strength Matrix:

Market Attractiveness vs Competitive Strength

- Looks for your strengths and where it can be applied in the market

Criteria for Competitive Strength:

- Relative Brand strength
- Management quality
- Profit/Cost Position
- Strength of Assets and competencies
- Access to Financial resources

Criteria for Market Strength:

- Strength of Competition
- Market Size
- Growth Rate

Cost Quality Flexibility Delivery Service

Initial Features Products Accuracy Reliability
Operational Aesthetics Assets Completeness Tangibles
Maintenance Reliability Markets Security Responsiveness
Performance Volumes Time Assurance/Empathy
Dependability Capacity Returns
Perceived
Quality
Effectuation Vs Ideation:

Effectuation starts with you. What you know, who you know and what your strengths are.
Effectuation is starting off with your own given means in order to generate imagined ends.
Interaction with potential stakeholders and negotiates commitment which reshapes goals of
the new venture and is repeated until stakeholder’s merge to a viable new venture.

Effectuation Summary:
- Starts with you and what/who you know
- Invests in only what you can afford to lose “Quantitative Risk”
- Embrace and leverages surprises
- Builds a network of integrates stake holders
- Control of future directions “Locus of Control”

Ideation:
Begins with an Idea, and should be the first investment of anybody who seeks to be an
entrepreneur.

- Does the idea fill a void in the market?

- Does it pass a live-fire test?
- Do industry experts hate your idea?
- Idea Shelf life?
- Funding?
- How Large is the market for the idea?

Science is High risk and has a long payback period. Generally, investors who have money
do not know much about science and as a result, there is a level of uncertainty in your
idea that investors risk.