Application of Blue Ocean Strategy

Paul Pomerantz has an article in the October Forum magazine (here, but I think you need to be a member) that discusses an application of the ideas from the book, Blue Ocean Strategy in an association context (Paul is EVP of the American Society of Plastic Surgeons).

Jeff and I have used the concepts in Blue Ocean Strategy in our strategy work as well, and I am encouraged to see more association executives adopting the ideas.

I've reviewed the book here, but the basic premise of the book is that organizations who can figure out how to change the rules of the game will be able to find "blue oceans" where they are effectively without competitors ("oceans" with lots of competitors become "red" from the feeding frenzy. I know, it's kind of gross.).

What is required is a new and clearer view of what will drive success. This allowed Southwest Airlines to become the biggest in the world while other major airlines languished—they defined themselves as a mass transportation company. They decided not to compete with other airlines, but with your car.

The article in Forum talks about the challenge of doing the same thing in a membership organization for plastic surgeons. They, too, are struggling with clarity about what will really drive success—shifting from being the most skilled, to forging lifetime relationships of care.

That kind of clarity is rare, and I agree that the concepts in Blue Ocean Strategy can help leadership groups think differently about it. It’s that "middle level thinking" I keep talking about. It led the Plastic Surgeons to create a "strategic positioning statement." Pomerantz notes:

This statement, in our opinion, differs from a vision or mission statement, which in many respects are primarily inspirational. A positioning statement tells our members, staff, and the public about who we are and what makes us unique.

Comments

[Robert Schmidt]

Great comments. Keep on preaching the message people. I am continually amazed how many executives choose to take the safe road. In our practice at Prophet Strategies, we've extensively used Blue Ocean strategy principles to help our clients present "REAL VALUE" to their members and customers. One of our clients attained a 1000% increase in PROFIT. Something that could not be achieved through doing things the same as everyone else in a bloody red ocean.

[Michael Bolden]

The essence of Blue Ocean Strategy is to create new features and benefits along dimensions which were previously uncharted for a given market or industry. I am a "Blue Oceanist" who strongly believes in looking at substitute and complimentary products to develop or create new features or benefits for products and services.

I write about this and other aspects of Blue Ocean Strategy in a recent article. For anyone reading this, I will send it to you free! - write me at mbolden@chathamchicago.com. I am also open to talking about more of my Blue Ocean Extensions and other strategic paradigms if you write me.

Michael Bolden

[Sesso]

Great site.

[jeff paul forum]

Blue oceans strategies help build competitive services on form of different products and services to cater different markets .