Blue Ocean Strategy by W. Chan Kim, Renée Mauborgne

By W. Chan Kim, Renée Mauborgne

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Creative solutions are the result of a process of trial and error. Some authors have attempted to bridge the divide between the two schools by taking a contingency approach—entrepreneurs should be discovery driven in some situations and effectual in others (Alvarez, Barney and Anderson, 2013). 0005 Entrepreneurial Process  The concept of a fitness landscape was first introduced in theoretical biology by Wright (1937) and subsequently applied in physics, computer science, and business (Beinhocker, 1999).

BM has to create value to all stakeholders, customers, owners, employees, and suppliers. Without value creation to customers we will not be able to create value to the other stakeholders. The expected value created for each stakeholder has to be planned in parallel, because we need the participation of all of them in order to succeed. If one will not be satisfied the chain could be broken. At the strategic level, BM covers overall direction in the firm’s market positioning, interactions across organizational boundaries, and growth opportunities (Morris, Schindehutte, and Allen, 2005).

The buyer is not the consumer. Someone else pays for it: the advertising company. The provider of the service is the user. The value/price to the customer can be transferred immediately or progressively depending on the capability of the customers to afford it or to appreciate it. More numerous could be the customers if the value/ price is transferred progressively over time. 0006 Business Model  A producer of software could have a wider market if customers could pay for the use of the software from a “cloud” service.

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