Entrepreneurship

By
Beenish Qureshi
Visiting Faculty
 Topic:
Blue Ocean Strategy
 Basic Business Terms

• Market Development
• Product Development
• Market growth
• Market share
• Cluttered Market
 Definitions

• Blue Ocean Strategy

• Blue Oceans/ Red oceans
 Blue Ocean Strategy

• Companies have fought for competitive advantage, battled over market

share, and struggled for differentiation since the conception of commerce.
• Yet in today’s overcrowded industries, competing head-on results in
nothing but a bloody “red ocean” of rivals fighting over a dwindling profit
pool.
•And yet while most companies compete within such red oceans, , this
“boiler-plate” strategy is increasingly unlikely to create profitable growth in
the future.
•Some creative thinkers and consultants argue that tomorrow’s leading
companies will succeed not by battling competitors, but rather by creating
“blue oceans” of uncontested market space ripe for growth.
5
The Impact of Creating Blue Oceans
The Profit and Growth Consequences of
Creating Blue Oceans

Business Launch 0.86 0.14

Revenue Impact 0.62 0.38

Profit Impact 0.39 0.61

0 0.2 0.4 0.6 0.8 1

Launches within red oceans Launches for creating blue oceans

6
Minimizing Risk and Maximizing Opportunity

1. The first blue ocean principle – reconstruct market boundaries –

addresses the search risk of how to successfully, out of the haystack of
possibilities that exist, commercially compelling blue ocean
opportunities.

2. The second principle – focus on the big picture; not the numbers – tackles
how to mitigate the planning risk of investing lots of effort and lots of
time but generating only red ocean type moves.

7
Minimizing Risk and Maximizing Opportunity

3. The third principle – reach beyond existing demand – addresses the scope
risk of aggregating the greatest demand for the new offering.

4. The fourth principle – get the strategic sequence right – addresses how
to build a robust business model to ensure that you make a healthy
profit on your blue ocean idea thereby mitigating business model risk.

8
 Value Innovation

Value Innovation is the strategic move designed to create powerful

leaps in value for both the firm and its buyers. The intended result is
to render rivals obsolete as well as unleashing new demand.

Value Innovation: The Cornerstone of Blue Ocean Strategy

9
 Blue Ocean Strategy is a Dynamic Process

•Blue ocean strategy is not only a unique strategic methodology intended to

create and to capture blue oceans but also how to monitor when it is time to
search out and develop a new blue ocean.

• In this way, blue ocean strategy presents a dynamic iterative process to

create uncontested market space across time.

10
 Blue Ocean Strategy
• The value curve, the basic component of the strategy canvas, is a graphic
depiction of a company’s relative performance across its industries factors
of competition.

Reduce

A New
Eliminate Value Create
Curve

Raise

11
 Blue Ocean Strategy
Eliminate-Reduce-Raise-Create Grid
Eliminate: Raise:
Which factors that the Which factors should be
industry has long raised well above the
competed on should be industry’s standard?
eliminated ?

Reduce:
Create:
Which factors should be
Which factors should be
reduced well below the
created that the industry
industry’s standard?
has never offered?

12
Thankyou