The World's Best Book Summaries
What is ethos in the context of persuasion? How can you use the three elements of ethos to make a persuasive argument? Ethos is used in persuasive arguments to establish trustworthiness and credibility as a speaker or writer. There are three essential elements to developing ethos: virtue, personal disinterest, and practical wisdom. Keep reading to learn about the three building blocks of ethos and how to use them in a persuasive argument.
How do you chart a blue ocean strategy graph? How do you determine whether your product is unique enough to classify as a “blue ocean”? Kim and Mauborgne present a graphic tool to help you visualize how your product (and the strategy behind it) differs from others in the market. If your curve has a completely different shape from other curves, this implies a unique combination of value, consistent with the blue ocean strategy. Here is how to use the blue ocean strategy chart to gauge where your business stands against competitors.
What is Blue Ocean Strategy about? What is the difference between a blue ocean and a red ocean? In their book Blue Ocean Strategy, W. Chan Kim and Renée Mauborgne argue that the solution to business success is to operate in an uncontested market (the “blue ocean”). They contrast it with a “red ocean”, a marketplace where fierce competition has stained the water with the blood of the combatants. According to the authors, crowded markets and red ocean strategies tend to produce minimal profit margins, while blue ocean strategies lead to more profitable growth. Below is a brief overview of the
How do you design a blue ocean product? What is the key to creating a product in a yet uncontested market? To begin brainstorming ideas for a blue ocean product offering, think of a product or service your company already sells, to use as a starting point. To help you come up with product ideas, Kim and Mauborgne explore some different approaches you can take to brainstorming. Here are seven potential routes you could take to brainstorm a blue ocean product that sells.
What is value innovation? How do Kim and Mauborgne define “value innovation” in the context of blue ocean strategy? Value innovation is the cornerstone of Kim and Mauborgne’s blue ocean strategy. The authors clarify that blue ocean innovation is not a matter of merely raising or lowering value in order to raise or lower your costs. Instead, Kim and Mauborgne assert that you need a breakthrough that allows you to offer better value at a lower cost. Keep reading to learn about the concept of blue ocean innovation (or “value innovation”) and how it creates blue oceans through new ideas
How do advertisers manipulate customers into buying their products? How do they use cues to trigger purchasing habits in your subconscious? In his book The Power of Habit, Charles Duhigg explains how advertisers influence customers to buy their products by learning about and manipulating their purchasing habits. They achieve this through sales promotions, rearranging shelves, or tracking your habits online. Continue reading to learn how advertisers use the psychology of habit to sell more products.
What is Blue Ocean Strategy about? What is the key premise of W. Chan Kim and Renée Mauborgne’s blue ocean business model? In Blue Ocean Strategy, W. Chan Kim and Renée Mauborgne argue that the key to building a successful business is to create a blue ocean—a brand-new market for an innovative idea. You can create such a market by focusing on your product’s characteristics that customers really care about while discarding the characteristics they don’t. This creates a new product offering that doesn’t currently exist, in a space without direct competitors. Here is our review of Blue Ocean Strategy.
What is the difference between a blue ocean and a red ocean market? How do you prevent a blue ocean product from becoming a red ocean? Kim and Mauborgne caution that when you create a blue ocean market, imitators will inevitably arrive, eventually turning it into a red ocean. There are two ways you can respond: 1) prolong your blue ocean, and 2) find a new blue ocean. Let’s consider each of these approaches in turn.
What are your customers thinking? How do you measure KPI for customer experience? There are many different approaches to measuring customer experience. In their book Blue Ocean Strategy, Renée Mauborgne and W. Chan Kim advise that you use what they call a “buyer utility map,” which is essentially a customer experience scorecard for analyzing how your customer responds to your product at every stage. A blank example of a customer experience scorecard is shown below.
How do you execute a blue ocean strategy? What are the most common challenges you’re likely to encounter when putting your blue ocean strategy in motion? Once you’ve got a strategy, it’s time to execute it. In Blue Ocean Strategy, Kim and Mauborgne oversee four potential hurdles that you’ll have to overcome to implement a blue ocean strategy at your company and offer advice on how to overcome them. Let’s take a look at each one in turn.