BLUE OCEAN

STRATEGY
 The Interview
Prime Time Dialog
A special dialog of Blue Ocean Strategy

• Companies have fought for competitive advantage, battled over

market share, and struggled for differentiation
• Blue Ocean Strategy provides a systematic approach to making the
competition irrelevant
• Blue Ocean Strategy highlights the six principles that show how to:
• construct market boundaries,
• focus on the big picture,
• reach beyond existing demand,
• get the strategic sequence right,
• overcome organizational hurdles, and
• build execution into strategies

W. Chan Kim
Renee Mauborgne
 Red Ocean Strategy
• Compete in existing
market space
• Beat the competition
• Exploit existing demand
• Make the value-cost
trade-off
• Align the whole system of
a firm’s activities with its
strategic choice of
differentiation or low cost
vs Blue Ocean Strategy
• Create uncontested
market space
• Make the competition
irrelevant
• Create and capture new
demand
• Break the value-cost trade-
off
• Align the whole system of
a firm’s activities in pursuit
of differentiation and low
cost
Back
 Value Creation
New Product Development and Introduction Must Be Designed
Around Customer Needs (Key Value Indicators, Interest, and
Ability to Pay) of each market segment (community)
Market Segments/Group of
Customers

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Product
Value Produk
Package
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