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Blue Ocean Strategy
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Blue Ocean Strategy
1.
blue ocean strategy ®
Go where profits and growth are – and where the competition isn’t www.blueoceanstrategy.com © Kim & Mauborgne
2.
Researching the history of
blue ocean creation •Data: 150 strategic moves, more than 30 industries, over 100 years (1800‐2000) • Variables considered: industrial, organizational and strategic www.blueoceanstrategy.com © Kim & Mauborgne
3.
Red versus blue
Red Ocean Strategy Blue Ocean Strategy Compete in existing market space Create uncontested market space Beat the competition Make the competition irrelevant Exploit existing demand Create and capture new demand Make the value‐cost trade‐off Break the value‐cost trade‐off Align the whole system of a Align the whole system of a company’s activities with its strategic company’s activities in pursuit of choice of differentiation or low cost differentiation and low cost www.blueoceanstrategy.com © Kim & Mauborgne
4.
Six paths to
blue ocean strategy Industry Strategic group From Buyer group To Creating Competing Across Within Scope of product or service offering Functional‐emotional orientation of an industry Time The six conventional boundaries of competition www.blueoceanstrategy.com © Kim & Mauborgne
5.
Strategy canvas of [yellow tail]
High Premium wines [yellow tail] Budget wines Low www.blueoceanstrategy.com © Kim & Mauborgne
6.
Four actions framework
Reduce Which factors should be reduced well below the industry’s standard? Eliminate Create Which of factors that A New Which factors should the industry takes for Value be created that the granted should be industry has never eliminated? Curve offered? Raise Which factors should be raised well above the industry’s standard? www.blueoceanstrategy.com © Kim & Mauborgne
7.
Minimizing risks & maximizing opportunities in
formulation & executing blue ocean creation Formulation Principles Formulation Risks Reconstruct market boundaries Search Risk Focus on the big picture, not the numbers Planning Risk Reach beyond existing demand Scale Risk Get the strategic sequence right Business Model Risk Execution Principles Execution Risks Overcome key organizational hurdles Organizational Risk Build execution into strategy Management Risk www.blueoceanstrategy.com © Kim & Mauborgne
8.
blue ocean strategy ®
How to create uncontested market space and make the competition irrelevant. www.blueoceanstrategy.com © Kim & Mauborgne
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