BLUE OCEAN STRATEGY

1. Blue Ocean Strategy

2. • Explain Who developed the Blue Ocean
Strategy
• Explain What is a Business Universe
• Differentiate between Blue Ocean and Red
Ocean
• Describe the Importance of Blue Ocean
Markets
• Explain Key Terms Related to Blue Ocean
Strategy
• Describe Ways to Create Blue Oceans
• Explain Steps to Create a Blue Ocean
Strategy
• List the Blue Ocean Strategy Tools
• Explain What is Meant by Value Innovation
• Explain What is Tipping Point Leadership
• Explain What is the ERRC Grid
• Explain the Use of the Buyer Utility Map
• Explain Steps for Strategy Reorientation &
Execution
• List the Core Values to Drive Innovation
• Describe How to Choose Right Strategic
Approach
Objectives

3. Flynn is not sure what kind of business he
should start.
He knows that if he tries to venture into
the field of electronics and consumer
goods, his business would face a lot of
tough competition from the existing
players in the field.
Introduction

4. The market space of electronics and
consumer goods is so crowded that in
order for his business to succeed, Flynn
would have to beat the existing
competition and also exploit the existing
demand.
Introduction

5. Introduction
Flynn’s ex-boss and a long time friend, Mark Yardley
comes to Flynn’s rescue.
Mark tells Flynn that in order to start a successful
business venture, it is crucial that Flynn’s business
should create a unique and uncontested market space
just for itself.

6. In such a market space which is free from
competition, Flynn can be sure that his
business can easily and to a greater extent
surely succeed.
Mark tells Flynn to carefully study and
implement the ‘Blue Ocean Strategy’ for
his business.
Introduction

7. Mark tells Flynn that in order to
implement the ‘Blue Ocean Strategy’ he
would have to come up with a business
idea that will create a new uncontested
market space for his business.
Introduction

8. Hence, you can understand that in order to
succeed in any business, an organization
and its management should always try to
adopt a strategy such as the ‘Blue Ocean
Strategy’ to rid itself of the tough
competition and create a new
free market space for itself.
Introduction

9. • W. Chan Kim and Renee
Mauborgne developed the
“Blue Ocean Strategy”
concept. This concept was
first presented in their book
titled “Blue Ocean Strategy:
How to Create Uncontested
Market Space and Make the
Competition Irrelevant.”
Who developed the concept of Blue Ocean Strategy?

10. Blue Ocean Strategy versus Red Ocean Strategy
Let us now look at some of the differences between the blue ocean
strategy versus the red ocean strategy.
In this concept, a
market space is
created which is
free from any
competition.
It involves
competing in an
existing market
space
Competition is
irrelevant here and
it has no effect on
the success of a
business.
It involves beating
the competition

11. Importance of Blue Ocean Markets
• In red ocean market space, the competition is
very severe and cut throat. Hence “Blue
Oceans” are important and it is a shot way to
success.
• When the competition is heavy, the
companies have to reduce their price to beat
others. It leads to reduction in profits and
growth.

12. Steps to Create a Blue Ocean Strategy
• Step 3: Reach Beyond Existing Demand
• Step 1: Create Uncontested Market Space
• Step 2: Focus on the Big Picture
• Step 4: Focus on Getting the Strategic Sequence Right
The following are the four steps that you need to follow to create a ‘Blue
Ocean Strategy: