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Blue Ocean Strategy
- 1. BLUE OCEAN STRATEGY Submitted by – 20191150 Chitriv Aditya 20191160 Yadav Kavita 20191013 D’Souza Rithika 20191039 Somani Suyog 20191043 Biradar Vishwanath 20191102 Barai Rohit
- 2. BLUE OCEAN STRATEGY • ‘Blue Ocean Strategy is referred to a market for a product where there is no competition or very less competition.’ - W. Chan Kim and Renee Mauborgne • This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. • Aims to capture new demand, and to make competition irrelevant by introducing a product with superior features.
- 3. EXAMPLES
- 4. Logic behind Blue Ocean Strategy • It’s not about technology innovation. • You don’t have to venture into distant waters to create blue oceans. • Competition results in nothing, innovation does.
- 5. Blue Ocean Strategy “You are your own benchmark.”
- 6. Apply Blue Ocean Strategic Moves • Never use the competition as a benchmark. • Reduce the cost while also offering customers more value.
- 7. The Creation Of The Strategy • Create uncontested market space. • Make the competition irrelevant. • Create and capture new demand. • Break the value cost trade off. • Align the whole system of firms activities in pursuit of differentiation and low cost.
- 8. BLUE V/S RED OCEAN STRATEGY BLUE OCEAN STRATEGY • Create Uncontested market • Make the competition irrelevant • Create and Capture New Demand • Break the Value-Cost Trade-off • Non-Zero Sum Game • Less Revenue, High Profit RED OCEAN STRATEGY • Compete in Existing Market • Beat the Competition • Exploit Existing Demand • Make the Value-Cost Trade-Off • Zero-Sum Game • High Revenue, Less Profit
- 9. SIX PATH FRAMEWORK • Look across alternative industries • Look across strategic groups within industry • Look across buyer groups • Look across complementary product and service offerings • Look across the functional-emotional orientation of an industry • Look across time to shape trends
- 11. Conclusion • Because blue and red oceans have always coexisted however, practical reality demands that companies succeed in both oceans and master the strategies for both. But because companies already understand how to compete in red oceans, what they need to learn is how to make the competition irrelevant. • Blue ocean strategy can become as systematic and actionable as competing in the red oceans of known market space.