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BLUE

OCEANS
STRATEGY
Section
3,Group 10
Ankit Maheshwari
FT173014
Dheeraj Korlepara
FT173028
Jayendra Yadav
FT173042
Naveen Mathur
FT173056
Ravi Teja Bhupathi Raju FT173070
Shivani Dholakia
FT173085
Trisha Kalita
FT173100

ries follow the conventional strategy of increasing market share by offer at a cheaper price or by using various marketing techniques etition is among the rivals offering services in the same industry t universe are composed of two types of Oceans: Blue Oceans Red Oceans new businesses are first started as blue ocean and later converted as re .

deep and yet to be explored •High profitable growth .Blue Ocean •Defined as untapped market •Competition is irrelevant •Market space is vast.

RED OCEAN •Industry boundaries are defined •Competitive rules are known •Cut throat competition exists •Aims at providing reasonable prices •Supply may be more than demand .

PROFITS AND GROWTH IMPACT BY BLUE OCEA .

DRIVING FORCES OF BLUE OCEANS •Technological advances •Trend towards globalization •Disappearing trade barriers between nations and regions .

. •Explains what customers receive from the existing competitive offerings in the market. •Captures the current state of play in the known market space which helps in understanding the competition and competing factors in products. service. and delivery.Strategic Frameworks used The Strategy Canvas•Acts as a diagnostic and an action framework for building a compelling blue ocean strategy.

Strategic Frameworks used… The Strategy Canvas Example .

 helps a company to discover entirely new sources of value for buyers . • Asks four key questions to challenge an industry’s strategic logic and business model which:  eliminates factors that an industry has been competing for a long time  determines whether the products or services is overdesigned to beat competition  identify and eliminate compromises an Industry forces onto customers.to create new demand and shift the strategic pricing of the industry .Strategic Frameworks used… The Four Action Framework• Reconstructs buyer value elements in crafting a new value curve.

Strategic Frameworks used… .

• Pushes companies to simultaneously pursue differentiation and low costs to break the value/cost trade-off.Strategic Tool used The Eliminate-Reduce-Raise-Create Grid• Pushes companies to ask and act on the 4 questions in four actions framework and create a new value curve.raising and creating. . reducing . • Drives companies to fill in the grid with the actions of eliminating. • Flags companies that are focused only on raising and creating which inflates their cost structure and over-engineering products and services.

Strategic Tool used… .

Characteristics of a good strategy .

• Over-Delivery Without Payback When a company’s value curve on the strategy canvas is shown to deliver high levels across all factors without increase in market share and profitability. focus. A company’s explicit or implicit strategy tends to be trying to outdo its competition on the basis of cost or quality.Reading the value curves The value curve can reveal strategic knowledge on the current and future state of an industry. divergence and a compelling tagline . The company is on right track if the company’s value meets the criteria that defines blue ocean strategy i. . • A Company Caught in the Red Ocean When a company’s value curve converges with its competitors. • A Blue Ocean Strategy Answers whether a business deserves to be a winner.e.

• Reading the value curves continues… An Incoherent Strategy-  When a company’s value curve zigzags. it signals that the company doesn’t have a coherent strategy. driven by the demand side. Its strategy is likely based on independent sub-strategies. or an “inside-out” perspective that is operationally driven . • Strategic Contradictions When company is offering a high level on one competing factor while ignoring others that support that factor • An Internally Driven Company whether a company’s strategic vision is built on an “outside-in” perspective.

Conclusion The frameworks and tools are important for the companies to break from the competition and open up blue oceans of uncontested market space. .