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Unformatted text preview: arget buyers. Here, price-minus costing, and not cost-plus pricing, is essential if one
is to arrive at a cost structure that is both profitable and hard for potential followers to match. Target costing for
companies executing a Blue Ocean Strategy is therefore generally more aggressive, because it forces
companies to find innovative ways to reduce their costs. Part of the challenge of meeting the target cost is
addressed in building a strategic profile that has focus, i.e. by reducing or eliminating key competitive factors
the industry has taken for granted. 18
© 2008 Kim & Mauborgne. All Rights Reserved. Blue Ocean Strategy Dictionary Time, Look Across refers to path six of the Six Paths framework, whereby managers gain noncustomer
insights by shaping external trends to unlock breakthrough value. All industries are subject to external trends
that affect their business over time. Instead of adapting incrementally and somewhat passively, one can gain
insights into how the trend(s) will change value to customers and impact their company...
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- Spring '12