Submitted to: Dr.

Akib Warriach
Submitted by: Tahira Umair
BOOK AND AUTHORS
 FACTS ABOUT BOOK

• Over 2 million copies sold

• Translated into over 41 foreign languages – a
world record
• Taught as the major theory of strategy at
leading business schools
• Gives insights to CEOs, Executives, Heads of
State and Prime Ministers
 DEFINITION
• Blue ocean strategy is the simultaneous pursuit of
differentiation and low cost to open up a new
market space and create new demand. It is about
creating and capturing uncontested market
space, thereby making the competition
irrelevant.
• W. Chan Kim and Renée Mauborgne suggested
blue ocean strategy in Harvard Business Review
of October 2004. It is more common for a blue
ocean to be created from within a red ocean.
 BLUE OCEAN STARTEGY
• There are two ways to create blue oceans:
• In a few cases, companies can give rise to
completely new industries, as eBay did with
the online auction industry.
• But in most cases, a blue ocean is created
from within a red ocean when a company
alters the boundaries of an existing industry
such as Bonanza online stitching.
 History of Blue Ocean Creation
• Data:150 blue ocean creation, more then 30
industries, past 100 years(1880-2000)
• Hotels, cinema, retail, airline, energy,
computers, broadcasting, construction,
housing industry, automobile, steel
manufacturing, chemicals, cosmetics,
software, etc.
 EXAMPLE OF BOS: NETFLIX
• Netflix is the world's leading internet
entertainment service with 130 million
memberships in over 190 countries enjoying
TV series, documentaries and feature films
across a wide variety of categories.
 BLOCKBUSTER LLC
• Blockbuster LLC, formerly Blockbuster
Entertainment, Inc., and also known as
Blockbuster Video or simply Blockbuster, is an
American-based provider of home movie and
video game rental services through video
rental shops, DVD-by-mail, streaming, video
on demand, and cinema theater
• Established by Wayne Huizenga & David Cook
in October 19, 1985.
• Netflix was launched on April 14, 1997 by
Marc & Reed, as the world's first online DVD
rental store with only 30 employees.
• The company first started its service in which
a customer would pay money per movie
rented. Later on, they started to charge
monthly fee (basic to premium).
• In 2007, Netflix began streaming videos online
on demand through internet or DVDs and
reaches to 3.6 billion dollars in revenue.
• Allows customers to watch whatever they
want with no commercials or interruptions.
• Reduced subscription prices, provides
technical support, parental filtering, movie
options and able to view Netflix on different
devices.
• They also identified the customer pain that
average person does not want to leave their
house to simply watch a movie in their busy
day schedules.
• They really make the competition irrelevant
and that’s why Blockbuster ceased its
operation in 2013.
• Netflix continuous listen to their customer by
taking feedback in an effective way.
• Today, Netflix is the premier movie website in
the movie market.
 BOS IS AN ENDLESS OCEAN
• Netflix needs to attract a new market as the
younger generation is a great market because
they are more familiar with technology.
• Streaming live sports and concerts big market
that is untouched by Netflix.
 BLUE OCEAN STRATEGY IN RETAILING
SECTOR - PAKISTAN
• With the induction of global brands and outlets,
Pakistan’s retail sector is showing impressive growth in
in-store retailing and online retailing.
• Retail is the 3rd largest sector in Pakistan after
agriculture and manufacturing and the second largest
employer, employing 16% of the total labor force.
• Important contributing factors includes a young
population (73% under 35 years), growing middle
income class (currently 81-77 million), increasing total
and urban population, and overall globalization and
liberalization of trade.
• The role of general stores is expected to
decline by 50% in future years in favor of large
retailers such as Metro, Makro and Carrefour.
• In 6 to 7 years, all giant retailers have plan to
establish 12 more branches in different region
of Pakistan.
 ORGANIC RECTAIL STORE
• Late 1990s, the concept of healthy lifestyle enters in
life of majority of Pakistanis.
• Later on, people start thinking about products free
from artificial colors, flavors, preservatives, sweeteners
and hydrogenated fats in food items and non-food
items.
• The concept of organic food is increasing dramatically
in last 10 years and there is no proper retail store in
Pakistan where an individual can get all types of
organic food under one roof.
• Investor can move away from crowded red ocean
which was dominated by large Malls, Marts,
departmental store, supermarkets etc and would come
up with idea of introducing organic retail store.