about winning without fighting
Blue Ocean Strategy

to fight and conquer in all your
battles is not supreme excellence;
supreme excellence consists in
breaking the enemy's resistance
without fighting
Master Sun Tzu in ‘ Art of War’

Conventional Strategy
DIFFERENTIATION OR LOW COST
Blue Ocean talks about Value Innovation
DIFFERENTIATION AND LOW COST
BLUE OCEAN STRATEGY

Value Innovation
• Region where a company’s
actions favourably affect both
its cost structure and its value
proportion to buyers
– Cost savings by eliminating
and reducing the factors an
industry competes on
– Buyer values is lifted by
raising & creating elements Costs
the industry has never
offered
– Over time, costs are
reduced further as scale Value
economies kick in Innovation
Buyer Value

Comparison of Red vs. Blue

How to find new Value Curve
Four Actions Framework
• Eliminate
– Which of the factors that the industry takes for granted should be
eliminated?
• Reduce
– Which factors should be reduced well below the industry's
standard?
• Raise
– Which factors should be raised well above the industry's
standard?
• Create
– Which factors should be created that the industry has never
offered?

Case Study 1 :
US Wine Industry Pre-Yellow Tail

Case Study 1:
US Wine Industry Post Yellow Tail

Case Study 1 :
Value Curve for Yellow Tail
• Eliminate
– Enological Terminology
– Above the Line
– Focus on Aging Quality
• Reduce
– Vineyard Prestige & Legacy
– Wine Complexity
– Wine Range
• Raise
– Price as compared to Budget
– Retail Store Environment
• Create
– Easy Drinking
– Ease of Selection
– Fun & Adventure

Case Study 2 :
US Women Exercise Pre Curves

Case Study 2:
US Women Exercise Post Curves

Case Study 2 :
Value Curve for Curves
• Reduce
– When compared to traditional gym
• Price
• Amenities
• Equipment
• Workout time
• Availability of instructors
• Raise
– Environment encouraging discipline & motivation
– Same sex non-threatening
• Create
– Womanly fun atmosphere

Case Study 3 :
Cricket Before IPL

Case Study 3:
Cricket After IPL

Case Study 3 :
Value Curve for IPL
• Reduce
– Spectator Time Invested (Competes with Movie/Football)
– Emphasis on Classic Techniques (Batting/Bowling)
– Emphasis on Patience, Perseverance
• Raise
– Emphasis on Athleticism
– Pace of the Game
– Entertainment with Bollywood, Cheerleaders etc.
– Certainty of Result
• Create
– City Loyalty
– Welcome to Dummies

Is Tata Nano Really Creating a Blue
Ocean ?

skillful leader subdues the enemy's
troops without any fighting; he
captures their cities without laying
siege to them; he overthrows their
kingdom without lengthy operations
in the field
Master Sun Tzu in ‘ Art of War’

Reference : Blue Ocean Strategy By
W. Chan Kim, Renée Mauborgne