www.blueoceanstrategy.

com
Kim&Mauborgne
blueoceanstrategy

Gowhereprofitsandgrowthare
andwherethecompetitionisnt
Data:150strategicmoves,morethan30
industries,over100years(18002000)
Variablesconsidered:industrial,
organizationalandstrategic
Researching the history of
bl ue ocean creation
www.blueoceanstrategy.com
Kim&Mauborgne
Red versus bl ue
www.blueoceanstrategy.com
Kim&Mauborgne
RedOcean Strategy
Competeinexisting marketspace
Beat thecompetition
Exploit existingdemand
Makethevaluecosttradeoff
Alignthewholesystemofa
companysactivitieswithitsstrategic
choiceofdifferentiationor lowcost
BlueOceanStrategy
Createuncontested marketspace
Make thecompetitionirrelevant
Createandcapturenewdemand
Breakthevaluecost tradeoff
Alignthewhole systemofa
companysactivitiesinpursuitof
differentiationandlowcost
Si x paths to
bl ue ocean strategy
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Kim&Mauborgne
From
Competing
Within
ToCreating
Across
Thesixconventionalboundariesofcompetition
Industry
Strategicgroup
Buyer group
Scopeofproduct orserviceoffering
Functionalemotional
orientationofanindustry
Time
Strategy canvas of [yel l ow tai l ]
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Kim&Mauborgne
High
Low
[yellowtail]
Premiumwines
Budgetwines
Four actions framework
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Kim&Mauborgne
ANew
Value
Curve
Eliminate
Whichoffactorsthat
theindustrytakesfor
grantedshouldbe
eliminated?
Reduce
Whichfactorsshould
bereducedwellbelow
theindustrys
standard?
Raise
Whichfactorsshould
beraised wellabove
theindustrys
standard?
Create
Whichfactorsshould
becreated thatthe
industryhasnever
offered?
Mi ni mi zi ng ri sks & maxi mi zi ng opportuni ti es i n
formul ati on & executi ng bl ue ocean creati on
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Kim&Mauborgne
FormulationPrinciples
FormulationRisks
ExecutionPrinciples
ExecutionRisks
Reconstructmarketboundaries
Focusonthebigpicture,notthenumbers
Reachbeyondexistingdemand
Getthestrategicsequenceright
SearchRisk
PlanningRisk
ScaleRisk
BusinessModelRisk
Overcomekey organizationalhurdles
Buildexecutionintostrategy
OrganizationalRisk
ManagementRisk
www.blueoceanstrategy.com
Kim&Mauborgne
blueoceanstrategy

Howtocreateuncontestedmarketspaceand
makethecompetitionirrelevant.