Blue Ocean

Strategy : From
Theory to
Practice
 Group 3
Meher Ahmed Chowdhury - 202402066
Shafin Rahman - 202402023
Abrar Noor Intesar- 202402031
Rifat Uddin Shoyeb-202402035
Md.Julfikar Hossain-202402038
 Meet the
Author

• Move away from “red

ocean” competition
• Create uncontested
market space
 About Contact

1. It creates uncontested 3. It’s grounded in data 4. It provides a step-by-step

2. It builds execution into strategy
market space Blue ocean strategy is based on process
The process and tools are inclusive,
Blue ocean strategy doesn’t aim to easy to understand and visual – which a decade-long study of more than From assessing the current state
out-perform the competition. It of play in an industry, to exploring
makes the process non-intimidating and 150 strategic moves spanning
aims to make the competition the six paths to new market space,
an effective path to building execution more than 30 industries over 100
irrelevant by reconstructing years. to understanding how to convert
into strategy.
industry boundaries. noncustomers into customers, blue
ocean strategy and shift provides a
systematic process to create your
blue ocean.

5. It empowers you through 6. It shows you how to create a 7. It pursues differentiation 8. It maximizes opportunity
tools and frameworks win-win outcome and low cost while minimizing risk
Blue ocean strategy offers As an integrated approach, blue ocean Blue ocean strategy is based Blue ocean strategy allows you to
systematic tools and frameworks strategy shows how to align the three on the simultaneous pursuit of test the commercial viability of
strategy propositions – value, profit, differentiation AND low cost. It
to shift from red ocean of your ideas and shows you how to
and people – to create a win-win is an ‘and-and’ not an ‘either-
competition to blue oceans of new refine your ideas to maximize your
outcome. or’ strategy.
market space. upside while minimizing downside
risk.
Difference between Red & Blue Ocean
Red Ocean Strategy Blue Ocean Strategy

 Compete in existing market  Create the uncontested market

space space
 Beat the competition  Make the competition
 Exploit existing demand irrelevant
 Make the value-cost trade-off  Create & capture new demand
 Align strategy choice of  Break the value-cost trade-off
differentiation or low cost  Simultaneous pursuit strategy
of differentiation and low cost
Red Ocean Example
Competing in Existing Markets
Coca-Cola vs Pepsi – Constant battle in the soft drink market with advertising, price wars,
and minor product changes.
Samsung vs Apple (pre-iPhone era) – Competing mainly on features, design, and price
within the existing mobile phone market.
Fast Food Chains (McDonald’s vs Burger King) – Intense competition for the same
customers with similar products.
Blue Ocean Example

Apple iPhone – Revolutionized the smartphone industry by combining phone,

music, internet, and apps in one ecosystem.
Tesla – Created a new market by making electric cars aspirational, high-
performance, and eco-friendly.
Netflix – Moved beyond DVD rentals into streaming, creating an entirely new way
of consuming entertainment.
Uber – Redefined urban transportation by creating ride-sharing instead of
competing directly with taxi companies.
Why Blue Ocean Strategy is so impactful today?
Avoid Intense Competition – Instead of fighting rivals head-to-head, it creates
a new space where competition becomes irrelevant.

Unlock New Demand – Focus on attracting new customers and markets that
competitors have not yet tapped.

Higher Profit Potential – Innovation and differentiation can allow premium

pricing while also reducing costs.

Sustainable Growth – By offering unique value, companies build long-term

advantages instead of short-term survival.

Break the Value-Cost Trade-off – Achieve both differentiation and low cost,
rather than choosing only one.
reate Blue Ocean Strategy

Boundary
Reconstructing Market
boundaries
by discovering
Demand
new opportunities
Reach beyond of existing
Look alternative industry for customers demand
sorting Strategic Sequence
finance activities.
Getting strategic sequence right
utility, price and adoption
Think like non-customers before
customers in fast-food industry.
 Fresh and Healthy
 At a reasonable price
 Create a compelling reason
for the mass of people to buy
 Price accessibility to buyers
 Attain cost target to profit
strategic
price
Profit & Growth consequences for creating
Blue Oceans
Consequences for Growth Consequences for Profit
Demand Creation Higher Margin
Lead to faster market penetration Eliminating/reducing factors company can be ab
and scalable growth . to increase buyer value .

New Market Reducing Price War

Leadership
Set to new value standard for faster move With no direct competition in short terms
and rapid adoption companies
can avoid destructive price competition in red
oceans

Long-term Profi tability

Sustainable growth potential
.Market growth is most sustainable Continuous innovation and brand strength neede
because competition is minimized initially sustain profitability
Profit & Growth consequences for creating
Blue Oceans
Research conducted overall 108 companies findings
86% 14% following observation.
Business Launches
Red Ocean Blue Ocean
Initiatives Initiatives
62% 38%
Revenue Impact
86% of launches 14% of launches in new
• 62% of total revenues markets
• 39% of total profits • 38% of total revenues
39% 61%
Profit Impact • 61 % of total profits

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Red Ocean Blue Ocean
The Four Actions Framework
e Four Actions Framework (ERRC)

1 Eliminate 2 Reduce
Helps identified areas where costs are wasted Reduce unnecessary cost that doesn’t
add much significance .

3 Raise 4 Create
Encourages firms to exceed customers Entirely new sources of value creation
expectation and demand to open new market
Understanding the Strategy Canvas & The
Market
The Core Concept

Visual Tool
Helps companies compare their offerings
to competitors across key factors.

Identify Oppurtunities
Reveals where the competition is focused
and highlights areas for innovation.

Create a New Curve

The goal is to develop a unique value
curve that creats a new space.
Case Study : [yellow tail] Wine

Challenged the Norm

Ignored traditional wine factors like
aging, prestige, and complexity.

Introduced New Factors

Focused on simplicity, “ease of drinking,”
and “fun and adventure”

Achieved “Blue Ocean”

Successfully appealed to a new, broader audience,
creating an uncontested market space.
Three Characteristics of a Good Blue Ocean Strategy

[yellow tail]'s, exhibits three complementary qualities.

Focus Divergence Compelling Tagline

Concentrated on easy Offered a unique proposition by “fun and simple wine for everyday
drinkability, fun branding, and targeting non-wine drinkers, enjoyment”, really hit home and
simple selection. making the experience casual and standing out from the rest.
fun.
The Strategy Canvas of U.S. Wine Industry (1990s)

The Strategy Canvas of U.S. Wine Industry (1990s

• Elite image in packaging

• Heavy marketing & promotion
Key • Price per bottle
• Vineyard prestige & legacy
Comp • Complexity of taste (tannins, oak, etc.)
eting • Wide range of wine

factor
s
The Strategy Canvas of U.S. Wine Industry (1990s

Both had similar

Industry trap: Over-
Premium wines → Budget wines → strategic profiles →
delivery on prestige
High price, high Low price, low focused on making
Insights: & complexity,
offerings across all offerings across all wine more
ignoring
factors. factors. “sophisticated for
noncustomers.
special occasions.”
 Casella Wines (Yellow Tail) Breakthrough
Casella Wines ( Yellow Tail ) Breakthrough

From: “How to make more To: “How to make a fun, easy-

Problem Redefined: sophisticated wine for special to-enjoy wine for everyday
occasions.” drinking.”

Targeted
Looked to alternatives noncustomers →
Simplified taste, fun
How They Did It: → beer, spirits, Americans who found
branding, easy choices.
cocktails. wine pretentious &
complex.
Conclusion
• Yellow Tail proves that a clear, focused Blue Ocean Strategy can transform an industry and
create new demand.
• It teaches us that in a market red with bloody competition, the path to success isn't about
fighting for a bigger slice of the existing pie. It's about baking a whole new one.
• They didn't just sell wine; they **redefined the entire experience.** They focused on what
non-customers truly wanted: simplicity, approachability, and fun.
• They diverged from the entrenched norms of prestige and complexity to create something
entirely new
• In doing so, they didn't steal customers from other wineries; they **grew the market itself