THE RISING IMPERATIVE OF CREATING BLUE OCEANS• supply exceeds demand• globalization• accelerated commoditization of products and services• increasing price wars• shrinking profit margins• brands are becoming more similar select based on price
THE CORE PRINCIPLES•Reconstruct Market Boundaries….....overcome beliefs.•Reach Beyond Existing Demand…..go for uncontested space.•Get the strategic sequence right….value(innovation) first.
RECONSTRUCT MARKET BOUNDARIES BOS Logic: Reconstruct market boundaries Boundaries of Head-to-Head Creating Competition Competition New Market Space Boundaries of Head-to-Head Creating Competition Competition Focuses on rivals within its New Market Space Industry industry Looks across alternative Focuses on rivals within its Industry industries industry Focuses on competitive position Strategic Group within strategic group Looks across strategic groups Focuses on competitive position Strategic Group within its industry within strategic group Focuses on better serving the Buyer Group buyer group Focuses on better serving the Redefines the buyer group of the Buyer Group industry buyer group Focuses on maximizing the valueScope of Product and of product and service offerings Service Offerings Focuses on maximizing the value Looks across to complementaryScope of Product and within the bounds of its industry product and service offerings that of product and service offerings Service Offerings go beyond the bounds of its within the bounds of its industry Focuses on improving price-Functional-emotional industry performance with the functional- Orientation of an Focuses on improving price- Rethinks the functional-emotionalFunctional-emotional emotional orientation of this Industry performance with the functional- industry orientation of its industry Orientation of an emotional orientation of this Industry industry on adapting to external Focuses Time/Trends trends as they occur Participation in shaping external Focuses on adapting to external Time/Trends trends over time trends as they occur
GET THE STRATEGIC SEQUENCE RIGHT Buyer utility Is there exceptional buyer utility in your business idea? No Rethink YES Price Is your price easily accessible to the mass of buyers? No Rethink YES Cost Can you attain your cost target to profit at your strategic price? No Rethink YES Adoption What are the adoption hurdles in actualizing your business idea? Are you addressing them up front? No Rethink YESA commercially viable Blue Ocean Strategy
RED OCEAN STRATEGY• Building advantage over the competition.• Limited Growth• Outperform their rivals• Prospects for profit and growth may reduce
First company.Mumbai with 45 cabs in April 2007.Scaled to a fleet of 5,300+ cabs currently.3rd Largest in the world.Market share.
Facilities by Meru• Air-conditioned. • Tamper-proof digital cab meters with a printed receipt.• GPS enabled vehicles. • Trained chauffeurs.• 24/7 • Free Internet Service.• Uses clean green fuel.
• Himalaya is the one of the best Herbal healthcare products company in the World.• One of the first company to introduce Herbal Healthcare Products in Indian market.• They created new market of consumers who prefer Medically Proven Herbal Medicine.• Great Brand Value .• Top Innovative products –Serpina,LIV.52,etc.• Have a great Brand Trust.
BIBLIOGRAPHY• http://www.scribd.com/doc/44714032/red-ocean- strategy• W. Chan Kim, Renée Mauborgne, Blue Ocean Strategy, 2005,Havard Business School Press.• http://blueoceanstrategicplanning.blogspot.com/200 9/04/red-ocean-vs-blue-ocean.html