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Blue Ocean Strategy


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Blue Ocean Strategy

  1. 1. Blue Oceans Strategy
  2. 2. Competition
  3. 3. Red Oceans Blue Oceans
  4. 4. Red Oceans <ul><li>Compete in existing market space. </li></ul><ul><li>Beat the competition. </li></ul><ul><li>Exploit existing demand </li></ul><ul><li>Make the value-cost trade-off. </li></ul><ul><li>Align the whole system of a strategic firm's activities with its choice of differentiation OR low cost. </li></ul>
  5. 5. Blue Oceans <ul><li>Create uncontested market space </li></ul><ul><li>Make the competition irrelevant </li></ul><ul><li>Create and capture new demand </li></ul><ul><li>Break the value-cost trade-off </li></ul><ul><li>Align the whole system of a firm's </li></ul><ul><li>activities in pursuit of </li></ul><ul><li>differentiation AND low cost </li></ul>
  6. 6. Value Innovation
  7. 7. The reason for appearance Blue Oceans
  8. 8. Supply exceeds Demand
  9. 9. Globalization
  10. 10. Accelerated commoditization of products and services
  11. 11. Increasing price wars
  12. 12. Shrinking profit margins
  13. 13. Brands are becoming more similar
  14. 14. BOS Logic: The Core Principles
  15. 15. Reconstruct market boundaries
  16. 16. Reach beyond existing demand
  17. 17. Get the Strategic Sequence right Rethink YES YES YES YES NO NO NO NO
  18. 18. The case of Accor's Formule 1
  19. 19. The value curve of Formule 1 in the French Low Budget Hotel Industry
  20. 20. Thank You Raj Kumar V.