1. Presented By
Group 12-B
Chiranjib Saha
Daniel Kunzler
Meghna Verma
Sharvin Bhatt
Vikas Singh

2. Creating Blue Ocean
Drivers for Blue Ocean
What is Blue Ocean
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Untapped Market Space
Demand creation
Opportunity for high profitability, higher growth
Competition is irrelevant
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Accelerated technological advances
Globalization
Commoditization of products
Increasing price wars
Shrinking profit margins
Strategic move  Value Innovation

3. Analytical Tools and Frameworks
 Strategy Canvas
Horizontal axis: Tells current state of
play in the known market space
Vertical axis: Offering levels that
buyers receive across key
competing factors
Shift focus
Four Actions Framework
Competitors 
Alternatives
Customers  Non
customers
Eliminate-Reduce-Raise-Create Grid
Eliminate
3 Characteristics of
good strategy: Focus,
Divergence and a
Compelling tagline
Raise
Reduce
Create

4. Reconstruct Market Boundaries
Path 1: Look Across
Alternative Industries
Path 2: Look across Strategic
Groups Within Industries
Path 3: Look Across The
Chain Of Buyers
• Companies compete not only
within its own industry, but in
alternate products/services industry
• Strategic groups- price &
performance
• understand factors that determines
customers’ decision to trade up/down
across groups
• Competition converge on target
buyers
• Target the chain of “buyers”
• Look across buyer groups, gain
insights, redesign value curves to focus
on previously overlooked buyers
Path 5:Look Across Functional or
Emotional Appeal to Buyers
Path 6: Look across Time
Path 4: Look across
Complementary Product and
Service Offerings
•Untapped value in complementary
products and services
• Look at whole buying process to
identify
• Companies converge accepted notion of
scope and appeal-price & function
•Challenge the functional-emotional
orientation of industry
• Companies adapt incrementally or
passively
• Project the trend itself through
business insights, i.e. insights in
trends itself
•Trends- decisive, irreversible, clear
trajectory

5. Focus on Big Picture, Not the Numbers
1. Visual
Awakening
2. Visual
Exploration
3. Visual Strategy
Fair
4. Visual
Communication
• Compare your
Business with your
competitors’ by
drawing your “as-is”
strategy canvas
• Go into the field to
explore the six paths
to create blue
oceans
• Draw your “to be “
strategy canvas
based on insights
from field
observations
•Distribute your
before-and –after
strategic profiles on
one page for easy
comparison
• Observe the
distinctive
advantages of
alternative products
and services
• Get feedback on
alternative strategy
canvases from
customers,
competitors;
consumers, and
non-consumers
• Support only those
projects and
operational moves
that allow your
company to close
the gaps to actualize
the new strategy
• See which factors
you should
eliminate, create or
change
• Use feedback to
build the best “tobe” future strategy
• See when your
strategy needs to
change
Eliminate-Reduce-RaiseCreate Grid
Eliminate
Raise
Reduce
Create
Poineer-Migrator-Settler
(PMS) Map

6. Reach Beyond Existing Demand
How do you maximize the size of the blue ocean you are creating? Instead of concentrating on customers, look at
noncustomers! They tend to offer far more insight how to unlock and grow a blue ocean.
This is a key component of achieving value innovation. By aggregating the greatest demand for a new offering, this
approach attenuates the scale risk associated with creating a new market.
There are three tiers of noncostumers and how to approach them
1st tier
• soon-to-be noncustomers
• sit on the edge of the market
• waiting to jump the ship
• are in the search for better solutions
Your
market
1) Focus on the commonalities and not on the differences between 1st tier
non-customers. By doing so, you will glean insight into how to desegment
buyers and possibly, you will come across a huge untapped demand.
2nd tier
• refusing noncustomers
• people who either do not use or cannot
afford to use the current products
2) Look and focus on the commonalities across noncustomer responses. You will glean insight into how to
unleash an ocean of latent untapped demand.
3rd tier
• unexplored noncustomers
• have not been targeted or thought of as potential
customers by any player in the industry
3) By concentrating on key commonalities across
these noncustomers and existing customers, you
can understand how to pull them into the new
market

7. Get the Strategic Sequence Right
Buyer utility: Is there exceptional buyer utility in your business idea?
The need to assess the buyer utility of your offering
Tools: Buyer Utility Map
Purchase  Delivery  Use  Supplements  Maintenance  Disposal
Price: Is your price easily accessible to the mass of buyers?
The right strategic price ensures that buyers not only will want to buy your offering but also will have a
compelling ability to pay for it.
Step 1: Identify the Price Corridor of the Mass
Step 2: Specify a Level Within the Price Corridor
Cost: Can you attain your cost target to profit at your strategic price?
To maximize the profit potential of a blue ocean idea, a company should start with the strategic price
and then deduct its desired profit margin from the price to arrive at the target cost
Change the pricing model of the industry if necessary
Adoption: What are the adoption hurdles in actualizing your business idea? Are you addressing them up
front?
Even the best of all business ideas can provoke fear and resistance among the company‘s stakeholders.
Before investing in the new idea, the company must at the beginning overcome such fears by the most
important stakeholder such as Employees, Business Partners and the General Public

8. Executing Blue Ocean Strategy
Overcome the Key Organizational Hurdles
• Numbers don’t
show real picture
• Make people see
& experience
harsh reality
• Face disgruntled
customers
Cognitive
Resource
• Strategic shift
can be achieved
with same or
less resources
• Redistribute
resources from
Cold Spots to
Hot Spots
• Judiciously
Trade Horses
• Zoom in on
Kingpins
• Place kingpins in
a Fishbowl
• Atomize to get
the organization
to change itself
Motivation
Politics
• Vested interests
will always resist
change
• Secure a
Consigliere in
the top
management
• Leverage Angels
to silence Devils

9. Tipping Point Leadership
Tipping point leadership enables the change master to break away from conventional wisdom of red ocean
strategy and overcome organizational hurdles fast & at low cost while winning employees’ support.
To rock the boat and bring people out of comfort zone, make them see the worst operational problems at
the ground level. Gross numbers hide these realities and don’t allow people to realise them.
Identify the hot spots i.e. areas that require more resources and the cold spots i.e. the areas that require
less resources than currently allotted. Trade ‘horses’ i.e. resources judiciously among these spots.
Identify the kingpins i.e. those who can influence people around them. Motivate them and treat them very
transparently like a ‘fishbowl’. Leverage them to ‘atomize’ i.e. spread the change to every unit.
Rope in a ‘consigliere’ i.e. a respected person in top management who knows potential dangers. Tackle
‘devils’ i.e. vested interests using the ‘angels’ i.e. people who will benefit from the strategic shift.

10. Build Execution into Strategy
Engagement
Formulate &
execute Blue
Ocean Strategy
Fair
Process
Explanation
Expectation
Clarity
Fair Process
Intellectual &
Emotional
Recognition
Trust &
Commitment
Violation of Fair
Process
Intellectual &
Emotional
Indignation
Distrust &
Resentment
Voluntary
Cooperation
Refusal, Sabota
ge

11. Sustainability and Renewal of Blue Ocean Strategy
Sustainability can be traced to the following imitation barriers:
•Value imitation does not make sense based on conventional strategic logic
•Blue Ocean strategy conflicts with the brand image
•Natural monopoly: market cannot support another player
•Patents/ legal permits block imitation
•High volume generated by value innovation leads to rapid cost advantage
•Network externalities
•Required political, operational and cultural changes
•Companies that value innovate earn loyal customer following
Almost every blue ocean strategy will be imitated!
Rivalry will intensify, competition will commence and turn the ocean red.

12. Reference

Kim, W. Chan, Mauborgne, R., 2005. Blue Ocean Strategy. Harvard Business School Publishing.

13. THANK YOU