Presentation on Blue Ocean Strategy

Presented by :

Blue Ocean Strategy

o Creating new market
o Shift in paradigm o Value innovation o Hybrid of differentiation and low cost strategy o Blue ocean strategy focus on serve non-customer

o Defense against thinking profit margin in red ocean

o Blue ocean -reinventing the market

Red Ocean versus Blue Ocean

Red Ocean Strategy Blue Ocean Strategy

Compete in existing market space. Beat the competition

Create uncontested market space.

Make the competition irrelevant.

Exploit existing demand

Create and capture new demand.

Red Ocean Strategy Make the value

cost trade off.

Blue Ocean Strategy Break the valuecost trade-off.

Align the whole system of a firms activities with its choice of differentiation or low cost.

Align the whole system of a firms activities in pursuit of differentiation and low cost.

The Six Principles of Blue Ocean Strategy

Four Actions Framework

Reduce

Eliminate

A New Value Curve

Create

Raise

Six Path to Blue Ocean Strategy

Path 1-Look Across Alternative Industries

Path 2 -Look Across Strategic Groups within Industries

Path 3 -Look Across the Chain of Buyers

Path 4 Product scope

Path 5 -Functional or emotional orientation

Path 6 Looking across the time

Strategy Implementation
Current situation analysis Value diagram
Innovative ideas 6 paths, 4 actions

High level evaluation Work plan, Business plan, Review Implementation

The Three Tiers of Noncustomers

Third Tier

Second Tier

First Tier

Noncustomers

The Four Organizational Hurdles to Strategy Execution

Cognitive Hurdle

Political Hurdle

Resource Hurdle

Motivational Hurdle

Blue Ocean Strategy success stories