Navigate to new Blue Oceans

Avoid the Red Ocean
3

What is a Red Ocean™?
• A market in which the competition have
nothing left to compete on other than PRICE
• Examples
– Telephony (Voice Services)
– Fitness
– Air Travel
– Managed Services
Blue Ocean, Red Ocean, Strategy Canvas and other related marks are copyright © Kim, W. Chan and Mauborgne, Renee.
Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant. Boston: Harvard Business School Publishing, 2005.

Navigate to Blue Oceans
5

What is a Blue Ocean™?
A competitive strategy in which the
competition is made irrelevant (or much less
relevant) through an approach that pursues
differentiation AND low-cost to open a
previously un-tapped or under-served market
Blue Ocean, Red Ocean, Strategy Canvas and other related marks are copyright © Kim, W. Chan and Mauborgne, Renee.
Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant. Boston: Harvard Business School Publishing, 2005.
6

Set New Strategic Directions
7

Navigate to BIG Blue Oceans

How?
9

Blue Ocean™ Strategy:
Value Innovation
• Simultaneous COSTS
pursuit of
Differentiation and
VALUE
Low Cost INNOVATION
• The Cornerstone
of Blue Ocean BUYER
Strategy VALUE
Blue Ocean, Red Ocean, Strategy Canvas and other related marks are copyright © Kim, W. Chan and Mauborgne, Renee.
Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant. Boston: Harvard Business School Publishing, 2005.

Creative Thinking
11

Structured Brainstorming

Blue Ocean™ Strategy:
The Four Actions Framework
REDUCE
How do we Which factors should
be reduced well below
the industry standard?
create a new
value curve that
ELIMINATE CREATE
will differentiate Which of the factors
that the industry takes
for granted should be
A New
Value
Which factors should
be created that the
industry has never
Curve
us from the eliminated? offered?
competition in a
way that makes RAISE
Which factors should
them irrelevant? be raised well above
the industry standard?
Blue Ocean, Red Ocean, Strategy Canvas and other related marks are copyright © Kim, W. Chan and Mauborgne, Renee.
Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant. Boston: Harvard Business School Publishing, 2005.

Create a Value Innovation Curve

Continuous Value Innovation
15

Blue Ocean Case Study: Formule1

Formule1: Value Innovation Curve
Value Eliminate Reduce Raise
High
Formule1
Average
Value Curve Hotel **
Value Curve Hotel *
Low
Key Elements
copyright Kim & Mauborgne

The “Value Created” by Formule1

Formule1: Value Innovation Curve
Value Eliminate Reduce Raise Create
High
Formule1
Average
Value Curve Hôtel **
Value Curve Hôtel *
Low
Key Elements
copyright Kim & Mauborgne

Ready, Set, Go. . .
20

Sales David R Ednie
President & CEO
Performance SalesChannel Europe SARL
Ph: +33 676 600 925
Email: david@saleschannel-europe.com
Motivation Blog: http://saleschannel.blogspot.com
Website: www.saleschannel-europe.com