21 Quotes by Alexander Osterwalder

One way multi-sided platforms solve this problem is by subsidizing a Customer Segment. Though a platform operator incurs costs by serving all customer groups, it often decides to lure one segment to the platform with an inexpensive or free Value Proposition in order to subsequently attract users of the platform’s “other side.” One difficulty multi-sided platform operators face is understanding which side to subsidize and how to price correctly to attract customers.

Dream jobs are more often created than found, so they’re rarely attainable through conventional searches. Creating one requires strong self-knowledge.

An entrepreneur’s challenge is to design and successfully implement a new business model.

A business model describes the rationale of how an organization creates, delivers, and captures value.

Apple’s view was unique at a time when illegal downloading was rampant and most companies argued that nobody would be willing to pay for digital music online.

An organization must make a conscious decision about which segments to serve and which segments to ignore.

Design attitude demands changing one’s orientation from making decisions to creating options from which to choose.

In a nutshell, Blue Ocean Strategy is about creating completely new industries through fundamental differentiation as opposed to competing in existing industries by tweaking established models. Rather than outdoing competitors in terms of traditional performance metrics, Kim and Mauborgne advocate creating new, uncontested market space through what the authors call value innovation.

Focus: Establish a new business model in an old industry.