Strategic Sequence: Best Practices and Pitfalls

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Strategic Sequence: Best Practices and Pitfalls

According to Kim and Mauborgne (2005) a BOS will only work if it's formulated in the right strategic sequence. Without fulfilling one of these, the plan will fail. The sequence laid out by the authors is Buyer Utility, Price, Cost, and Adoption:
1. Buyer Utility. There must be substantial reasons for the public to want to purchase the products of the company before advancing to the next step within a Blue Ocean Strategy (price).
2. Price must be attractive to the customers in order for demand to increase. The right price encourages the customer to want to purchase the product and this increases the company's presence.
3. Cost. It is important to target the majority of buyers, but also ensure the company makes a profit.
4. Adoption. Lastly and to complete the sequence, there is adoption, which is the marketing (Promotion) of the company's ideas. The company needs to prepare itself for any rejection from the industry as customers are not easily swayed by a bargain.

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		2 Joseph Reeser, United States
	Strategic Sequence of Blue Ocean Strategy Indeed, 1. The first step in the right strategic sequence is understanding buyer utility and the value a product brings to customers. 2. The second step in the strategic sequence is to setting the right price. Too high of a price will turn your customers off and have them looking for a more affordable value. These first two steps directly impact revenue and now we need to talk about the third step in this process, cost. 3. Determining cost to your company along with price your selling to customers and buyer utility directly leads to profits. 4. Finally, the last step in our strategic sequence is to understand adoption hurdles. Adopting and overcoming hurdles is crucial for a business to succeed because Blue Ocean strategies bring new ideas to the market.

		1 sharleen Student (University), United States
	Blue Ocean Strategy Sequencing Indeed, 1. The first step in the sequence of BOS is buyer utility, this is the reasons why people should buy the product. Without logical reasons why this product will benefit customer it will not move to the second step price. 2. The price needs to set at the right price not to high or low it needs match up to the expectations of the product be affordable. 3. The third step is cost, can the product be sold at a target cost and still being in a reasonable profit. 4. The last step is adoption, this is the possible hurdles the company will face when trying to pitch the product to investors.

		1 Gaurav Bajaj Student (MBA), United Kingdom
	What is the Right Price in the Strategic Sequence? There is a lot of reference about setting the right price. But what is the right price at which the product must be marketed and how can it be determined? I think the right price is a very subjective term. Over the years I think it is about the experience that a product provides to a customer and if that is achieved a company can charge a high price for the product. Anymore thoughts on this please?

		1 Vivek Hattangadi Management Consultant, India
	The Right Price in the Strategic Sequence The right Price is aligned with MARKET DYNAMICS and BUYER UTILITY. Does your product have an exceptional utility and a compelling reason for the customer to buy it? If the answer is yes go in for a high price, yet affordable to a great mass of customers. If there is no compelling reason to buy, then there is no Blue Ocean potential.

		2 Jaap de Jonge Editor, Netherlands
	Strategic Sequence Avoids a Frequent Mistake by Technical Startups Technical startups in particular should avoid they approach investors with some technical advanced product idea, but without being able to clearly explain their market understanding and the buyer utility of their idea/product. A very nice user interface, some innovative technology, a low price or cost of the intended solution will not help much to convince investors unless the startup is able to demonstrate the existence of a blue ocean: some uncontested market space, a niche of an existing market that can be expanded later or even a completely new market. This requires IN-DEPTH UNDERSTANDING OF THE MARKET plus a UNIQUE BUYER UTILITY. So buyer utility is not only crucial for your target customers (potential buyers), but also for your investors. That's one more reason why buyer utility has to be the 1st step in any strategic sequence.