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Blue Ocean Strategy Rbn V1
Blue Ocean Strategy Rbn V1
Blue Ocean Strategy Rbn V1
Blue Ocean Strategy Rbn V1
Blue Ocean Strategy Rbn V1
Blue Ocean Strategy Rbn V1
Blue Ocean Strategy Rbn V1
Blue Ocean Strategy Rbn V1
Blue Ocean Strategy Rbn V1
Blue Ocean Strategy Rbn V1
Blue Ocean Strategy Rbn V1
Blue Ocean Strategy Rbn V1
Blue Ocean Strategy Rbn V1
Blue Ocean Strategy Rbn V1
Blue Ocean Strategy Rbn V1
Blue Ocean Strategy Rbn V1
Blue Ocean Strategy Rbn V1
Blue Ocean Strategy Rbn V1
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Blue Ocean Strategy Rbn V1

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Blue Ocean Strategy Frameworks are the fusion of Low Price and Differentiation. The 4 Actions Framework is a tool that marketers can use to create a tactical advantage that can render the competition …

Blue Ocean Strategy Frameworks are the fusion of Low Price and Differentiation. The 4 Actions Framework is a tool that marketers can use to create a tactical advantage that can render the competition irrelevant.

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  • 1. Blue Ocean Strategy Implementation Presented by: Reyland B. Nepomuceno, MBA General Manager – International Business Division Netpia Phils, Inc. Author: R.Nepomuceno Blue Ocean Strategy_RBN_v1
  • 2. The Path to Blue Ocean • “Imagination will often carry us to worlds that never were. But without it we go nowhere.” - Carl Sagan • “All men who have achieved great things have been great dreamers.” -Orison Swett Marden Author: R.Nepomuceno Blue Ocean Strategy_RBN_v1
  • 3. What is Blue Ocean Strategy? • Creating New Markets • Shift in Paradigm • Value Innovation: The cornerstone of BOS • Hybrid of Differentiation and Low-Cost Strategy • Traditional Marketing Focuses on serving “Customers” • BOS focuses on serving “Non-Customers” • Defense against thinning profit margins in Red Ocean • Red Ocean = Marketing is War! • Blue Ocean = Reinventing the Market Red Ocean Blue Ocean Create Uncontested Market Space Compete in Existing Market Make Competition Irrelevant Beat the Competition Create and Capture New Demand Exploit Existing Demand Break the Value-Cost Trade Off Value-Cost Trade Off Differentiation or Low-Cost Strategy Differentiation and Low-Cost Strategy Author: R.Nepomuceno Blue Ocean Strategy_RBN_v1
  • 4. Value Innovation • Value Innovation is created in the region where a company’s actions entail: – Cost Savings: elimination and reduction of factors where industry competes on – Buyer Value: raised through creation of elements the industry has never offered Costs Value Innovation Buyer Value Author: R.Nepomuceno Blue Ocean Strategy_RBN_v1
  • 5. Blue Ocean Frameworks • 6 Principles of Blue Ocean Strategy • Strategy Canvass • 4 Actions Framework • PMS Map • 3 Tiers of Non-Customers • Blue Ocean Strategy Sequence • Buyer Experience Cycle • Price Corridor of the Mass • Blue Ocean Index Author: R.Nepomuceno Blue Ocean Strategy_RBN_v1
  • 6. 6 Principles of Blue Ocean Strategy • Formulation Principles – Reconstruct Market Boundaries • Look Across Alternative Industries (different form but same purpose) • Look Across Strategic Groups w/in Industries (pursue similar strategy) • Look Across Chain of Buyers (not just the end-user but the influencer) • Look Across Complementary Products & Service Offerings • Look Across Functional or Emotional Appeal to Buyer • Look Across Time (Proactive not Reactive) – Focus on the Big Picture, Not the Numbers – Reach Beyond Existing Demand – Get the Strategic Sequence Right • Evaluation Principles – Overcome Key Organizational Hurdles – Build Execution into Strategy Author: R.Nepomuceno Blue Ocean Strategy_RBN_v1
  • 7. Strategy Canvass • Diagnostic and an Action Framework • Reveals where the Competition is Investing • Dissects the factors where the Industry currently competes in Product, Service and Delivery • Reveals “Gaps” in the current market offerings • Looking to “Alternative Industries” for Differentiation Focus Ave. Airline Cebu Pacific Car Transport Friendly Seating Speed Frequent X-Factor Price Meals Lounge Service Classes Departures Author: R.Nepomuceno Blue Ocean Strategy_RBN_v1
  • 8. 4 Actions Framework • Customers may be “Over-served in Areas which are not critical” and “Underserved” in areas that matter to a specific market • Core of the Blue Ocean = Enables the Fusion of Differentiation and Low-Cost Strategy • ELIMINATE – Factors that Industry Takes for Granted • REDUCE – Factors that should be reduced below industry Standard • RAISE – Value Factors above industry standard • CREATE – New Factors that Industry has not offered ELIMINATE REDUCE RAISE CREATE Author: R.Nepomuceno Blue Ocean Strategy_RBN_v1
  • 9. 4 Actions Framework: Sisig Hooray! ELIMINATE REDUCE -Above the Line -wait time Advertising (They actually raised the bar as it is served quicker) (They use Blogs) -cost = plastic spoon -Beer that is usually partnered w/Sisig and fork -Bar Music / Entertainment -price = P50 -comfortable seats -Sizzling Plate RAISE CREATE -Taste -Time of Availability (Any time of the day) -Convenience (Disposable Styro) -Place of Availability Author: R.Nepomuceno Blue Ocean Strategy_RBN_v1
  • 10. PMS Map • Defines a Roadmap to your Target Market Pioneer, Migrator and Setters “The Soul Never Thinks Without an Image” -Aristotle Author: R.Nepomuceno Blue Ocean Strategy_RBN_v1
  • 11. 3 Tiers of Non-Customers (Targeting) Tier Tier 2:Tier 3: Non-Customers 1: Mainly Buy Non-Customers That have offeringbuy your Industry’s Offerings Industry never thought of your market’s offerings as an option That refuse to Out of necessity (Either “Soon-to-be” Non-Customers to Belong to other Markets) (Their Needs have been Assumed they find it Unacceptable or Beyond Their Means) Author: R.Nepomuceno Blue Ocean Strategy_RBN_v1
  • 12. Blue Ocean Strategy Sequence Buyer Utility Exceptional Buyer Utility? No, Rethink YES Price Affordable to Masses? No, Rethink YES Cost Can you Attain Cost Target to Profit No, Rethink At Strategic Price? YES Adoption Adoption Hurdles Being Addressed? No, Rethink YES A Commercially Viable Blue Ocean Author: R.Nepomuceno Blue Ocean Strategy_RBN_v1
  • 13. Buyer Experience Cycle Author: R.Nepomuceno Blue Ocean Strategy_RBN_v1
  • 14. Price Corridor of the Mass Author: R.Nepomuceno Blue Ocean Strategy_RBN_v1
  • 15. Blue Ocean Idea Index (BOI Index) Microsoft Sony Nintendo Xbox-360 PS3 Wii - + + - - + - -,+ + - - + Author: R.Nepomuceno Blue Ocean Strategy_RBN_v1
  • 16. Case Study: Crocs ELIMINATE REDUCE • Innovation in the shoe industry -Shoe Box and -Labor Manufacturing • unique lightweight clogs that packaging Costs combine comfort and fashion and -Material Costs low price point. -Advertising Costs • Crocs branded shoes have broad RAISE CREATE appeal because they are a fun -Comfort (Lightweight -Fun (emotional) alternative to traditional sandals and loose fitting) -New Type of and casual shoes and come in a -Ease of Use Fashionable, wide range of funky bright colors. Functional Casual -Durability • Customer Value: ergonomic Footwear -Safety (Skid resistant) comfort, lightweight, anti-skid, -Purchase waterproof, and anti-microbial. Accessibility Author: R.Nepomuceno Blue Ocean Strategy_RBN_v1
  • 17. Case Study: Blackberry • Blackberry was a breakthrough in ELIMINATE REDUCE mobile communication -Need for computer to -implementation time • Was ideal for Corporate People check email -training time “On-the-Go” and must be reached -Need for wifi to -support time connect anywhere (airports, etc.) -response time to -remote client software emails (Global) • Rapid Response Time to Emails instalation • Eliminated need for Laptop and wifi RAISE CREATE connection to check email / -Battery Life -Security Browse / Chat -Durability (Bulletproof -”Push Technology” Material) -Redundancy of Email -Reliability / Synchronization -Speed of -QWERT Keyboard send/receive email -Real Time Chat -Browsing Capability Capability -integration of voice, PDA, Tools, Email Author: R.Nepomuceno Blue Ocean Strategy_RBN_v1
  • 18. Case Study: Infinit • Infinit is a RTD, non-carbonated

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