Hey folks, I've tried to epitomize the Blue Ocean Strategy. The book is about Marketing & creating a successful business. It caters to the need of developing new strategies for a business to reach at the pinnacle. One may find this book interesting & you can apply the tips given by the authors. Must Read it once if you like creative reading. Hope you'll find my review understandable. Your key suggestions are welcomed. Stay connected for more stuff!

1. A Book Review on
BLUE OCEAN STRATEGY (2005)
By: Jay Shah
Student at FMS-B, The M.S.University of Baroda.
Pioneer at J.S.Graphics

2. BLUE OCEAN STRATEGY
How to create uncontested market space
and make the competition irrelevant
W.Chan Kim, Co-Director at INSEAD
Renee Mauborgne, Co-Director at INSEAD

3. What does Blue Ocean Strategy mean??
Blue Ocean strategy is about growing demand
and breaking away from the competition.

4. • Red Ocean represents all the industries in
existence today. This is called as “Known
Market Space”
• Blue Ocean denotes all the industries not in
existence today. This is called as “Unknown
Market Space”

5. • Blue Oceans are defined by untapped market
space, demand creation and the opportunity
for highly profitable growth.
• The creators of Blue Ocean didn’t use the
competition as their benchmark. Instead they
followed a different strategy which we term as
“value innovation”

6. Red Ocean vs. Blue Ocean Strategy
Red Ocean
Strategy
Compete in existing market
space
Beat the competition
Exploit existing demand
Blue Ocean
Strategy
Create uncontested market
space
Make the competition
irrelevant
Create and capture new
demand

7. The Six Principles of Blue Ocean Strategy
Formulation Principles Risk Factor
1) Reconstruct market boundaries Search risk
2) Focus on the big picture, not the numbers Planning risk
3) Reach beyond existing demand Scale risk
4) Get the strategic sequence right Business model risk
Execution Principles Risk Factor
5) Overcome key org. hurdles Org. risk
6) Build execution into strategy Management risk

8. The Four Actions Framework
Reduce
Which factors should
be reduced well
below the industry’s
standard ?
Create
Which factors
should be created
that the industry
has never offered?
Raise
Which factors should
be raised well above
the industry’s
standard ?
Eliminate
Which of the
factors that the
industry takes for
granted should be
eliminated ?

9. The Sequence of Blue Ocean Strategy
Adoption
Yes
Cost
Yes
Price
Yes
Buyer Utility
Yes
A Commercially viable
Blue Ocean Idea

10. Imitation Barriers to Blue Ocean Strategy
• Value innovation does not make sense to a company’s
conventional logic
• Blue Ocean strategy may conflict with other co’s brand image
• Natural monopoly
• Patents or legal permits block imitation
• High volume leads to rapid cost advantage for the value
innovator, discouraging followers from entering the market
• Network externalities discourage imitation
• Imitation requires significant changes
• Brand buzz and loyal customer following tends to shun
imitators

11. Hope it was worth reading!
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