Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand.

1. BLUE
OCEAN
STRATEGY
GROUP 10
Cherranjivi, Junaid, Subhasni, Ayushi, Phanindra, Hriday

2. RED OCEAN
 Basis of competition is trying to get
a bigger share in the same defined
market.
 Boundaries are defined and
accepted.
 Competitive rules of the game are
well – known and predefined.

3. BLUE
OCEAN
 All the industries not in existence
today
 You create the demand rather than
fight over it.
 You define the rules for competition
 You are the only player in such a
market

4. BLUE OCEAN VS. RED OCEAN
BLUE OCEAN
• Create uncontested market space
• Make the competition irrelevant
• Create and capture new demand
• Break the value-cost trade off
• Align the whole system of a firm’s
activities with its strategic choice of
differentiation and low cost
RED OCEAN
• Compete in existing market space
• Beat the competition
• Exploit existing demand
• Make the value-cost trade off
• Align the whole system of a firm’s
activities its strstegic choice of
differentiation or low cost

5. SIX PRINCIPLES OF BLUE OCEAN
STRATEGY
Formulation Principles
1. Reconstruct market boundaries
2. Focus on the big picture, not the
number
3. Reach beyond existing demand
4. Get the strategic sequence right
Execution Principle
1. Overcome key organizational
hurdles
2. Build execution into strategy

6. STRATEGY CANVAS
• The strategy canvas is both a diagnostic and an action
framework for building a compelling blue ocean strategy. The
horizontal axis captures the range of factors that the industry
competes on and invests in, while the vertical axis captures the
offering level that buyers receive across all of these key
competing factors.

7. THE STRATEGY CANVAS SERVES TWO
PURPOSES:
• To capture the current state of play in the known market space, which allows users
to clearly see the factors that the industry competes on and where the competition
currently invests and
• To propel users to action by reorienting focus from competitors to alternatives and
from customers to noncustomers of the industry
• The value curve is the basic component of the strategy canvas. It is a graphic
depiction of a company’s relative performance across its industry’s factors of
competition. A strong value curve has focus, divergence as well as a compelling
tagline.

9. FOUR ACTIONS FRAMEWORK

12. RECONSTRUCT MARKET BOUNDARIES
Head-to-Head strategy
• Focus on rivals within industry
• Focuses on competitive position
within strategic group
• Focuses on better serving the buyer
group
• Focuses on maximizing the value of
product or service offering s within
the bounds of its industry
• Focuses on adapting to external
trends as they occur
Blue Ocean Strategy
• Looks across alternatives
industries
• Looks across strategic group
within industry
• Redefines the industry buyer group
• Looks across to complementary
product and service offering
• Participates in shaping external
trends over time

13. FOUR STEPS OF VISUALIZING
STRATEGY
VISUAL AWAKENING
• Compare your business with your competitors by drawing your
as is strategy canvas
• See where your strategy needs to changes
VISUAL EXPLORATION
• Go to the field to explore the six paths to creating blues ocean
• Observe the distinctive advantages of alternatives product and
service
• See which factor you should eliminate, create, or change

14. VISUAL STRATEGY FAIR
• Draw your “to be” strategy canvas based on insights from field
observation
• Get feedback on alternative strategy canvases from customers,
competitors’ customers and noncustomers
• Use feedback to build the best “to be” future strategy

15. VISUAL COMMUNICATION
• Distribute your before-and-after strategic profile on one page for
easy comparison
• Support only those project and operational moves that allow
your company to close the gap to actualize the new strategy

16. THE THREE TIER OF NON-CUSTOMER
• “soon to be” non customers who
are the edge of market ,waiting to
jump ship
First Tier
•“ Refusing "on-customer who
consciously choose against your
market
Second Tier
• “Unexpected” non-customer who
are in market s distant from yoursThird Tier

19. BUYER UTILITY
Is there exceptional buyer
utility in your business idea?
PRICE
Is your price easily
accessible to the mass of
the buyers?
COST
Can you attain your cost
target to profit at your
strategic price?
ADOPTION
What are the adoption hurdles in
actualizing your business idea?
A commercially viable blue ocean
idea
The Sequence of Blue Ocean Strategy

20. Motivational Hurdle
• Zoom in on kingpins (key influencers)
• Place kingpins on a fish blow
• Atomize to get the Organizational to change itself
Political Hurdle
• Secure a consigliere on your top management team
• Leverage your angels and silence your devils

21. Overcome Key Organizational Hurdles
Cognitive Hurdle
• Ride the “Electric sewer”
• Meet with Disgruntled Customer
Resource Hurdle
• Redistribute resources to your hot spots
• Redirect resources from your cold spots
• Engage is horse trading