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BLUE OCEAN STRATEGY
Making the competition irrelevant by building uncontested market space
CREDITS
• This is a synopsis of the concept of ‘Blue Ocean
Strategy’ developed by W. Chan Kim and Renee
Mauborgne
• For mo...
"My only hope is that some of you are leaking our business secrets
to the competition."
PROFITS
STRATEGY AS A PLOY
4
STRATEGY: WHAT & WHY
A strategy is a long term plan of action designed to achieve a
particular goal – Wikipedia
A strate...
BUILDING
UNCONTESTED
MARKET SPACE
BLUE OCEAN: TOOLS OF THE TRADE
Strategy
Canvas
Six Paths
Framework
Pioneer Migrator
Sett...
6
VALUE INNOVATION
COST
VALUE
Value Innovation is
achieved buy the
simultaneous reduction in
costs and uplift of buyer
val...
7
DRAWING A STRATEGY CANVAS
VALUE CURVE
FOUR ACTIONS FRAMEWORK
FOCUS, DIVERGENCE & COMPELLING
TAGLINE
8
VALUE CURVE
Your fiercest competitor
You
Battery
Life
Weight Looks Size PriceHD
Memory CPU
Speed
WiFiDVD
RW
High
Low
LAP...
"Everyone offers to carry her books?
you need a better value proposition."
10
FOUR ACTIONS FRAMEWORK
ELIMINATE RAISE
CREATEREDUCE
• DVD Writer • Battery Life
• Reduce Weight
• Reduce Looks
• Reduce...
11
FOCUS, DIVERGENCE, COMPELLING TAGLINE
• Focus: Your strategy needs a focus
• Divergence: Your strategy needs to be diff...
12
YOUR NEW VALUE CURVE
Universal
adapter
Battery
Life
Weight Looks Size PriceHD
Memory CPU
Speed
WiFiDVD
RW
High
Low
LAPT...
13
SIX PATHS FRAMEWORK
Look across Alternative
Industries
Rethink the Functional
& Emotional
Orientation of the
Industry
O...
14
THE THREE TIERS OF NON CUSTOMERS
Tier 1: “Ready to Jump Ship”
Tier 2: “Refusing”
Tier 3: “Unexplored”
Tier 1
Tier 2
Tie...
15
PIONEER MIGRATOR SETTLER
PIONEER
MIGRATOR
SETTLER
TODAY TOMORROW
Innovation
Improvement
Imitation
Your portfolio of ser...
16
PRICE CORRIDOR
Same
Form
Different Form,
Same Function
Different Form,
Different Function,
Same Objective
Mid Level
Pri...
17
BLUE OCEAN INDEX (BOI)
Utility Is there exceptional utility? Is there a
compelling reason to buy
Price Is your price ea...
18
IMPLEMENTING BLUE OCEAN STRATEGY
Give me a lever long enough and a
fulcrum on which to place it, and I shall
move the w...
19
IMPLEMENTING BLUE OCEAN STRATEGY
Use Tipping Point Leadership to address the four
main hurdles to implementation
Cognit...
20
THANK YOU
A long range weather forecast should be
obtained before leaving, as weather conditions
are extremely unpredic...
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Blue Ocean Strategy

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Blue Ocean Strategy helps organizations develop uncontested market space and make the competition irrelevant. The attached presentation summarizes the concept and utilizes laptops as an example to create a new strategy.

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Blue Ocean Strategy

  1. 1. BLUE OCEAN STRATEGY Making the competition irrelevant by building uncontested market space
  2. 2. CREDITS • This is a synopsis of the concept of ‘Blue Ocean Strategy’ developed by W. Chan Kim and Renee Mauborgne • For more insight and information please visit www.blueoceanstrategy.com 2
  3. 3. "My only hope is that some of you are leaking our business secrets to the competition." PROFITS STRATEGY AS A PLOY
  4. 4. 4 STRATEGY: WHAT & WHY A strategy is a long term plan of action designed to achieve a particular goal – Wikipedia A strategy is a plan, a ploy, a pattern, a position and finally a perspective – Henry Mintzberg Strategy is to organizations what blinders are to horses – Henry Mintzberg Strategy is when you are out of ammunition, but keep on firing so that the enemy won't know – Anonymous Strategizing is like using drainex. It declogs your clichéd approach and helps you think a fresh. Most importantly it MAKES YOU THINK
  5. 5. BUILDING UNCONTESTED MARKET SPACE BLUE OCEAN: TOOLS OF THE TRADE Strategy Canvas Six Paths Framework Pioneer Migrator Settler The 3 Tiers of non customers BOI Tipping Point Leadership Value Innovation
  6. 6. 6 VALUE INNOVATION COST VALUE Value Innovation is achieved buy the simultaneous reduction in costs and uplift of buyer value
  7. 7. 7 DRAWING A STRATEGY CANVAS VALUE CURVE FOUR ACTIONS FRAMEWORK FOCUS, DIVERGENCE & COMPELLING TAGLINE
  8. 8. 8 VALUE CURVE Your fiercest competitor You Battery Life Weight Looks Size PriceHD Memory CPU Speed WiFiDVD RW High Low LAPTOPS Visualize your current value curve against your fiercest competitor, for example
  9. 9. "Everyone offers to carry her books? you need a better value proposition."
  10. 10. 10 FOUR ACTIONS FRAMEWORK ELIMINATE RAISE CREATEREDUCE • DVD Writer • Battery Life • Reduce Weight • Reduce Looks • Reduce Hard Disk Memory Size • Online Buying • Detachable & Portable HD • Universal adapter & charger Reimagine your value curve by using the four actions framework
  11. 11. 11 FOCUS, DIVERGENCE, COMPELLING TAGLINE • Focus: Your strategy needs a focus • Divergence: Your strategy needs to be different from your competitors • Compelling Tagline: You should be able to summarize your strategy in the form of a compelling tagline • Focus: Portability & ease of purchase • Divergence: Away from looks and snob value to functionality • Compelling Tagline: ‘Your global office – to go’ Test the viability of your new value curve using the points below
  12. 12. 12 YOUR NEW VALUE CURVE Universal adapter Battery Life Weight Looks Size PriceHD Memory CPU Speed WiFiDVD RW High Low LAPTOPS Online Buying Detach able HD You Your fiercest competitor
  13. 13. 13 SIX PATHS FRAMEWORK Look across Alternative Industries Rethink the Functional & Emotional Orientation of the Industry Over time Shapes External Trends A Blue Ocean Strategy should…. Look across Strategic Groups Redefine Buyer Groups Look across complimentary product and service offerings
  14. 14. 14 THE THREE TIERS OF NON CUSTOMERS Tier 1: “Ready to Jump Ship” Tier 2: “Refusing” Tier 3: “Unexplored” Tier 1 Tier 2 Tier 3 Current Expand your market share by focusing on non-customers to unlock demand that did not exist before
  15. 15. 15 PIONEER MIGRATOR SETTLER PIONEER MIGRATOR SETTLER TODAY TOMORROW Innovation Improvement Imitation Your portfolio of services / products should move from being settlers to pioneers over a period of time
  16. 16. 16 PRICE CORRIDOR Same Form Different Form, Same Function Different Form, Different Function, Same Objective Mid Level Pricing High degree of legal and resource protection. Difficult to imitate Low degree of legal and resource protection. Easy to imitate Determining the strategic price of your service / product Some level of legal and resource protection Step 1: Start by identifying the price corridor to capture most of the customers Step 2: Define your pricing tier based on degree of protection
  17. 17. 17 BLUE OCEAN INDEX (BOI) Utility Is there exceptional utility? Is there a compelling reason to buy Price Is your price easily accessible to the mass of buyers Cost Does your cost structure meet your target cost Adoption Have you addressed adoption hurdles upfront Y / N Measuring the strength of your Blue Ocean Strategy before moving on to implementation
  18. 18. 18 IMPLEMENTING BLUE OCEAN STRATEGY Give me a lever long enough and a fulcrum on which to place it, and I shall move the world - Archimedes
  19. 19. 19 IMPLEMENTING BLUE OCEAN STRATEGY Use Tipping Point Leadership to address the four main hurdles to implementation Cognitive Hurdle - Direct experience, Disgruntled Customers Resource Hurdle - Hotspots, Coldspots, Horse trading Political Hurdle - Secure a Consigliere among the top management Motivational Hurdle - Go after the Kingpins, Kingpins in a fishbowl
  20. 20. 20 THANK YOU A long range weather forecast should be obtained before leaving, as weather conditions are extremely unpredictable Natal Daily News, quoted in Punch, June 16, 1982

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