In our previous articles, we mentioned various tools from Blue Ocean Strategy and analyzed their benefits. In this article, we will talk about another tool called “Sequence of Blue Ocean Strategy”. As can be understood from its name, rather than being a unique tool, it shows in which order you should be applying the Blue Ocean Strategy. This approach allows you to build a viable business model and ensure that you are making profit from the blue ocean. This will be the last article of our Blue Ocean Strategy series. Previous articles were as follows:

• An Introduction to Blue Ocean Strategy
• How to Create New Markets?
• Six Paths Framework
• Three Tiers of Noncustomers
• Buyer Utility Map
• Price Corridor of the Mass
• Executing Your Strategy Successfully

What is “Sequence of Blue Ocean Strategy”?

Sequence of Blue Ocean Strategy allows you to make sure that the Blue Ocean idea you are developing is both viable and profitable. It recommends that you evaluate your idea based on the following criteria, respectively:

• Buyer Utility
• Price
• Cost
• Adoption

As can be seen in the chart below, if you make this assessment in the correct order, you will minimize the risk of failing in the marke

1. Buyer Utility

The question you should ask at this stage is:

• Is there exceptional buyer utility in your business idea?

Asking this question allows you to understand if there is a compelling reason for customers to purchase the product/service you are offering. If your answer to this question is yes, go to the next criterion, else, review your idea before proceeding.

2. Price

You evaluated your opinion according to the first criterion and proceeded to the second stage. Now, answer this question:

• Is your price easily accessible to the mass of buyers?

If your price is not at an easily accessible level for customers, the product/service you are offering will not attract the attention of customers. Therefore, if your answer to this question is no, review your idea before proceeding to the next stage. If your answer is yes, go to the next criterion.

3. Cost

The product/service you are offering provides an exceptional benefit to your customers and your price is easily accessible. From a customer perspective, everything seems fine. But can you get the profit you want at this price level? So, in other words, the question you have to answer at this stage is:

• Can you attain your cost target to profit at your strategic price?

If your answer to this question is no, review your idea before proceeding to the next step, else, you can move on to the last criterion.

4. Adoption

With your idea, you are providing an exceptional benefit to your customers, your price is easily accessible, and you reached your cost target at this price level. The last step is to overcome the obstacles to the adoption of your product/service by the customers. At this stage, you should ask the following questions:

• What are the adoption hurdles in actualizing your business idea?
• Are you addressing them upfront?

The Blue Ocean strategy can only be successfully implemented if you overcome these obstacles. If your answer to the last question is yes: Bingo! You have found a viable and profitable Blue Ocean idea.

Conclusion

Sequence of Blue Ocean Strategy allows you to evaluate your idea in two ways:

• Viability
• Profitability

It also goes through four filters to make sure your idea is both viable and profitable: buyer utility, price, cost, and adoption. It helps you to understand which aspects of ideas that cannot pass through any of these filters are missing/wrong. As a result, it minimizes the risk of failing in the market.

To make sure that your idea resonates with the market, contact us and let us explain how we can contribute to you as FITMINDS.