Blue Ocean Strategy Go where the profits and growth are  - and where the competition isn’t   W. Chan Kim & Renée Mauborgne
The Strategy Canvas  of Cirque du Soleil hi offering level lo Price Fun & Humor Unique Venue Aisle Concessions Multiple Sh...
The Strategy Canvas  of Cirque du Soleil hi offering level lo Price Fun & Humor Unique Venue Aisle Concessions Multiple Sh...
Personal Finance Software Industry hi offering level lo Price Speed Accuracy Optional  Features Ease of Use © Kim & Maubor...
Red Ocean Versus Blue Ocean Strategy © Kim & Mauborgne 2006 Differentiation or low cost Differentiation and low cost Compe...
Substantially Higher Returns from Investments in Blue Oceans Business Launch Revenue Impact Profit Impact © Kim & Mauborgn...
Is there a pattern to blue ocean creation?
Researching the History of Blue Ocean Creation <ul><li>Data: 150 blue ocean creations, more than 30 industries, over 100 y...
Value Innovation School •  Trial & Error •  Pattern •  Entrepreneur •  A way of Thinking •  Theory •  Methodologies •  Ana...
Minimizing Risks and Maximizing Opportunities in Formulating and Executing Blue Ocean Strategy © Kim & Mauborgne 2006 Form...
THANK YOU www.powerpoint4u.blogspot.com www.bookfiesta4u.blogspot.com
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Blue Ocean Strategy

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Blue Ocean Strategy

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Blue Ocean Strategy

  1. 1. Blue Ocean Strategy Go where the profits and growth are - and where the competition isn’t W. Chan Kim & Renée Mauborgne
  2. 2. The Strategy Canvas of Cirque du Soleil hi offering level lo Price Fun & Humor Unique Venue Aisle Concessions Multiple Show Arenas Thrills & Danger Animal Shows Star Performers © Kim & Mauborgne 2006 Smaller Regional Circus Ringling Brothers Theme Refined Viewing Environment Multiple Productions Artistic Music & Dance Cirque du Soleil
  3. 3. The Strategy Canvas of Cirque du Soleil hi offering level lo Price Fun & Humor Unique Venue Aisle Concessions Multiple Show Arenas Thrills & Danger Animal Shows Star Performers © Kim & Mauborgne 2006 Ringling Brothers Smaller Regional Circus Theme Refined Viewing Environment Multiple Productions Artistic Music & Dance Cirque du Soleil Reduce Eliminate Raise Create
  4. 4. Personal Finance Software Industry hi offering level lo Price Speed Accuracy Optional Features Ease of Use © Kim & Mauborgne 2006 Personal Finance Software The Pencil Quicken
  5. 5. Red Ocean Versus Blue Ocean Strategy © Kim & Mauborgne 2006 Differentiation or low cost Differentiation and low cost Compete in existing market space Create uncontested market space Segment existing customers Attract noncustomers Beat the competition Make the competition irrelevant Blue Ocean Strategy Red Ocean Strategy Competitive Advantage Value Innovation Exploit existing demand Create and capture new demand
  6. 6. Substantially Higher Returns from Investments in Blue Oceans Business Launch Revenue Impact Profit Impact © Kim & Mauborgne 2006 Red Oceans Market-Competing Business Launches Blue Oceans Market-Creating Business Launches
  7. 7. Is there a pattern to blue ocean creation?
  8. 8. Researching the History of Blue Ocean Creation <ul><li>Data: 150 blue ocean creations, more than 30 industries, over 100 years (1880-2000) </li></ul><ul><ul><li>hotel, cinema, retailing, airline, energy, computer, broadcasting, home construction, automobile, steel manufacturing, chemicals, cosmetics, software, etc. </li></ul></ul><ul><li>Variables considered: industrial, organizational, strategic variables </li></ul>© Kim & Mauborgne 2006
  9. 9. Value Innovation School • Trial & Error • Pattern • Entrepreneur • A way of Thinking • Theory • Methodologies • Analytical Frameworks • Opportunity Maximizing & Risk Minimizing • Entrepreneurial Risk • Learning from Failures • DNA / Culture • Units for Experimentations (Spin-offs) • Risk Taking or Risk Avoiding Schumpeterian School Innovation © Kim & Mauborgne 2006 Random Systematic
  10. 10. Minimizing Risks and Maximizing Opportunities in Formulating and Executing Blue Ocean Strategy © Kim & Mauborgne 2006 Formulation Risks Execution Risks Search Risk Planning Risk Scale Risk Business Model Risk Organizational Risk Management Risk Formulation Principles Reconstruct market boundaries Reach beyond existing demand Get the strategic sequence right Execution Principles Focus on the big picture, not the numbers Overcome key organizational hurdles Build execution into strategy
  11. 11. THANK YOU www.powerpoint4u.blogspot.com www.bookfiesta4u.blogspot.com
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