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Agile Gurugram 2019 Conference | Blue Ocean Strategy | Amit Agarawal

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Session title : Blue Ocean Strategy

Session Overview :
Blue oceans strategy is the approach that suggests a company is better off searching for ways to play in uncontested market places instead of engaging with competition in existing marketing spaces. It is the idea of trying to find market spaces that are free of competitors by creating and capturing new demand, making the competition irrelevant. An example of a blue ocean strategy is Netflix. Netflix created uncontested marketing space by selling TV shows over the internet which no one else was currently doing. By doing this they made the competition irrelevant, creating and capture new demand for a service not currently available on the market. By doing this they were able to break the value-cost trade off by providing better value than cable TV (because you could watch any show you wanted at any time, without commercials) at a lower cost than cable TV. By entering a blue ocean they were able to pursue low cost and differentiation leadership compared to the alternatives to their product.

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Agile Gurugram 2019 Conference | Blue Ocean Strategy | Amit Agarawal

  1. 1. 1 Strategic Agility - An Introduction to Blue Ocean Strategy Beyond Operational Agility
  2. 2. 2 • Beyond Operational Agility • Introduction to Blue Ocean Strategy • Our Journey of executing BOS (at tactical level) Key Takeaways
  3. 3. 3
  4. 4. 4 Key Findings IT research firm ISG findings (out of 180 deals) [VALU E]% [VALU E]% Competitive Renegotiation No Competitive Renegotiation [VALU E]% [VALU E]% [VALU E]% Lose whole contract Scope reduction As It is
  5. 5. 5 • Increasing Demand • Saturated Demand • Declining Demand RED OCEAN – When Business operates in a over saturated market
  6. 6. 6 What Players do? Is it biased towards Supplier driven Value Proposition?
  7. 7. 7 RED OCEAN - How long can you sustain?
  8. 8. 8 So what is Strategic Agility? ?
  9. 9. 9 NON CUSTOMERS BOS - From Market Competing to Market Creating EXISTING CUSTOMERS
  10. 10. 10 Is it Worth? 86% 62% 39% 14% 38% 61% Business Launch Revenue Impact Profit Impact Launch with Red Ocean Launches for creating Blue oceans
  11. 11. 1111 Our Experience with BOS (at tactical level) 11
  12. 12. 12 Problem Statement
  13. 13. 13 Product Feature Canvas Product B Product A B u y e r V a l u e
  14. 14. 14 4 Key things we were doing incorrect • Product development inside out • Value Proposition  Product and Features • Losing out on Critical Value Proposition (they are most sustainable) • Usage Experience > Entertainment, Data Saving • Value Proposition may not change frequently, only forms and factors does
  15. 15. 15 Identify Industry Non-customers Soon to be Non Customers Current Market Un-explored Customers Refusing Customers
  16. 16. 16 Uncover hidden pain points from Existing + Refusing customers What utility the Industry focusses on Information Accessible Installation Use Supplements/ Ecosystem Maintenance Disposal Customer Productivity Cost of Ownership Risk Convenience Outreach Psychological Entertainment Stages of Buyer Experience cycle UtilityLevers
  17. 17. 17 Uncover Opportunity areas for Non customers What utility the Industry focusses on Stages of Buyer Experience cycle UtilityLevers Information Accessible Installation Use Supplements/ Ecosystem Maintenance Disposal Customer Productivity Cost of Ownership Risk Convenience Outreach Psychological Entertainment
  18. 18. 18 Our success with BOS Provided Technology as a value proposition for Non Product users Introduced Lite version as New Product variant for Memory sensitive users
  19. 19. 1919 APPENDIX 19
  20. 20. 20 Blue Ocean Strategy vs Red Ocean Strategy Red Ocean Blue Ocean • Compete in existing Market space • Beat the competition • Exploit the existing demand • Make the value cost trade off • Align Strategy choice of differentiation or lost cost • Create uncontested market space • Make the competition irrelevant • Create and capture new demand • Break the value-cost tradeoff • Simultaneous pursuit of differentiation and low cost
  21. 21. 21 Value Innovation – The cornerstone of BOS Buyer Value Cost Value Innovation Cost Saving – Eliminate and Reduce Competing Factors Buyer Lifted Value – Raise and create new Elements Creation of Blue ocean is about driving costs down while simultaneously driving value up for buyers
  22. 22. 22 THANK YOU

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