Professional Documents
Culture Documents
Blue Ocean Strategy
Blue Ocean Strategy
Go where the profits and growth are - and where the competition isn’t
Red Ocean Strategy Blue Ocean Strategy
Align the whole system of a firm’s Align the whole system of a firm’s
activities with its strategic choice of activities in pursuit of differentiation and
differentiation or low cost low cost
http://www.blueoceanstrategy.com © Kim & Mauborgne 2005
Researching the History of Blue
Ocean Creation
Strategic group
Buyer group To
From
Competing Creating
Scope of product or service
Within offering
Across
Functional-emotional
orientation of an industry
Time
Premium Wines
[yellow tail]
offering level
Budget Wines
lo
Use of enological
Above-the- Vineyard
Price terminology and
line
Aging
prestige
Wine Wine Easy Ease of Fun &
distinctions in wine
communication
marketing
quality
and legacy
complexity range drinking selection Adventure
The Four Actions Framework
Reduce
Which factors
should be reduced
well below the
industry’s
standard?
Eliminate Create
Which of the Which factors
factors that the should be created
industry takes for that the industry
granted should be has never offered?
eliminated ?
Raise
Which factors
should be raised
well above the
industry’s
standard?
http://www.blueoceanstrategy.com © Kim & Mauborgne 2005
Minimizing Risks and Maximizing
Opportunities in Formulating and
Executing Blue Ocean Strategy
Formulation Principles Formulation Risks