Blue ocean strategy is a concept developed by W. Chan Kim and Renée Mauborgne that involves creating new market space and breaking away from competition. It is based on a decade of research on over 150 strategic moves spanning 30 industries. The goal is not to outperform competitors but to make them irrelevant by creating new demand in uncontested market space. Key aspects include focus, divergence from competitors, compelling taglines, and tools and frameworks to systematically create blue oceans. Examples include Canon creating the desktop copier market by targeting individual users instead of corporate purchasers.
Blue Ocean Strategy - Summary and ExamplesKhai Biau Yip
This is a workshop presentation developed by KB Yip and YS Lieu for a Learning Institution. It can be easily customized to suit the needs for other organizations. Please contact KB Yip (ymike27@hotmail.com) if you need to get a copy of this presentation.
Summary of Blue Ocean Strategy and tools. To be used as a quick reference of the concepts and tools. Not a replacement to reading the book (www.blueoceanstrategy.com)
The “Blue Ocean” approach is a strategic tool that helps innovation strategists’ asses current and desired future strategic states whereas..Red Ocean is a current state.
Blue Ocean Strategy was developed by W. Chan Kim and Renée Mauborgne. They observed that companies tend to engage in head-to-head competition in search of sustained profitable growth. Yet in today’s overcrowded industries competing head-on results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. Lasting success increasingly comes, not from battling competitors, but from creating blue oceans of untapped new market spaces ripe for growth.
Blue Ocean Strategy challenges everything you thought you knew about strategic success and provides a systematic approach to making the competition irrelevant.
Blue Ocean Strategy by W. Chan Kim and Renee MauborgneSameer Mathur
A cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool.Here is a book summary of "Blue Ocean Strategy" compiled by Prof. Sameer Mathur.
Blue Ocean Strategy - Summary and ExamplesKhai Biau Yip
This is a workshop presentation developed by KB Yip and YS Lieu for a Learning Institution. It can be easily customized to suit the needs for other organizations. Please contact KB Yip (ymike27@hotmail.com) if you need to get a copy of this presentation.
Summary of Blue Ocean Strategy and tools. To be used as a quick reference of the concepts and tools. Not a replacement to reading the book (www.blueoceanstrategy.com)
The “Blue Ocean” approach is a strategic tool that helps innovation strategists’ asses current and desired future strategic states whereas..Red Ocean is a current state.
Blue Ocean Strategy was developed by W. Chan Kim and Renée Mauborgne. They observed that companies tend to engage in head-to-head competition in search of sustained profitable growth. Yet in today’s overcrowded industries competing head-on results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. Lasting success increasingly comes, not from battling competitors, but from creating blue oceans of untapped new market spaces ripe for growth.
Blue Ocean Strategy challenges everything you thought you knew about strategic success and provides a systematic approach to making the competition irrelevant.
Blue Ocean Strategy by W. Chan Kim and Renee MauborgneSameer Mathur
A cutthroat competition results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool.Here is a book summary of "Blue Ocean Strategy" compiled by Prof. Sameer Mathur.
It is about Red Ocean. Meaning, Understanding of Red ocean. There is difference between red and blue ocean strategies.
Examples for red ocean.
Comparing graphs on red and blue oceans.
Advantages of red ocean
Disadvantages of red ocean
Which would you choose on? Red or Blue to start up your business.
Conclusion.
Blue Ocean Strategy - Creating Value Innovationsmelanie_ernst
Why still bothering what the competition is doing? Can you really win the battle? Or wouldn’t it be much nicer to get out and create your own market, where YOU are the only supplier. Blue Ocean Strategy leads you to uncontested market space, making the competition irrelevant by creating and capturing new demand, breaking the value-cost-trade off and aligning the whole system of a firm's activities in pursuit of differentiation and low cost.
Blue Ocean Strategy, How to Create Blue Ocean, Four Factors of Blue Ocean Strategy, Value Innovation, Cirque Du Soleil, Ford Model T, Structuralist view, Re-constructionist view, Blue Ocean Vs Red Ocean,
This is the first presentation of a two part webinar for Blue ocean strategy.
The presentation introduces to red ocean and blue ocean companies, How blue ocean strategy is a simultaneous pursuit of cost and value.
The presentation provides a quick introduction with new age examples to strategy canvas, 6 paths framework, four actions frame work, buyer utility map, 3 tiers of non customers and PMS maps.
The presentation also utilizes these frameworks in showcasing descriptive case studies of companies like netjets, indochino.com, Zynga and khan academy.
This presentation is aimed at explaining the greatness of Blue ocean strategy thinking to general audience and does not imply distortion of facts and frameworks of the original Authors: Chan Kim, Renee Mauborgne
It is about Red Ocean. Meaning, Understanding of Red ocean. There is difference between red and blue ocean strategies.
Examples for red ocean.
Comparing graphs on red and blue oceans.
Advantages of red ocean
Disadvantages of red ocean
Which would you choose on? Red or Blue to start up your business.
Conclusion.
Blue Ocean Strategy - Creating Value Innovationsmelanie_ernst
Why still bothering what the competition is doing? Can you really win the battle? Or wouldn’t it be much nicer to get out and create your own market, where YOU are the only supplier. Blue Ocean Strategy leads you to uncontested market space, making the competition irrelevant by creating and capturing new demand, breaking the value-cost-trade off and aligning the whole system of a firm's activities in pursuit of differentiation and low cost.
Blue Ocean Strategy, How to Create Blue Ocean, Four Factors of Blue Ocean Strategy, Value Innovation, Cirque Du Soleil, Ford Model T, Structuralist view, Re-constructionist view, Blue Ocean Vs Red Ocean,
This is the first presentation of a two part webinar for Blue ocean strategy.
The presentation introduces to red ocean and blue ocean companies, How blue ocean strategy is a simultaneous pursuit of cost and value.
The presentation provides a quick introduction with new age examples to strategy canvas, 6 paths framework, four actions frame work, buyer utility map, 3 tiers of non customers and PMS maps.
The presentation also utilizes these frameworks in showcasing descriptive case studies of companies like netjets, indochino.com, Zynga and khan academy.
This presentation is aimed at explaining the greatness of Blue ocean strategy thinking to general audience and does not imply distortion of facts and frameworks of the original Authors: Chan Kim, Renee Mauborgne
In the continual quest for sustainable growth, companies
have traditionally focused on the competition.
They have fought over the same customers, tried to
improve on the same benefits, and hoped to wring
profits from a shrinking revenue stream. In Blue
Ocean Strategy, professors W. Chan Kim and Renée
Mauborgne argue that the key to success is to make the
competition irrelevant. They offer a practical, tested
analytical framework that innovators in any sector
can use to create new, uncontested market space. In
this “blue ocean,” organizations can take advantage
of untapped demand and deliver powerful leaps in
value—both for their customers and for themselves.
This report is about the Blue Ocean Strategy and its business application in bkash. As a developing country, Bangladesh should concentrate in Blue Ocean strategy.Blue Ocean Strategy seeks to make the creation and capturing oceans as systematic and actionable as competing in the red waters of known market space. For although blue ocean strategists have always existed, for the most part their strategies have been largely unconscious. Blue ocean strategy seeks to remedy this by not only decoding the pattern and principles behind the successful creation of blue oceans, but also providing the analytical frameworks and tools to act on this insight. A blue ocean is created in the region where bkash’s actions favorably affect both its cost structure and it value proposition to buyers.
This is a very valuable tool and a conceptual model pertaining 'Strategy' with a Blue Ocean perspective. This is equally important for business executives and MBA students.
2. what is blue ocean strategy ?
Blue ocean strategy is embodied by Professors W. Chan Kim
and Renée Mauborgne in a book called Blue ocean strategy. It
was published by Harvard Business School Press.
Blue ocean strategy, is a result of study of decade-long study of
more than 150 strategic moves spanning more than 30
industries over 100 years (1880-2000).
The aim of Blue ocean strategy is not to out perform the
competition in the existing industry, but to create new market
space or a blue ocean.
Blue ocean strategy offers systematic tools and frameworks to
break away from the competition and create a blue ocean of
uncontested market space.
3. Characteristics of BOS
Focus
A good strategy should have a strong focus, and a company’s
strategic profile should clearly show it.
Focus is all about execution of key factors that the organization
has raised in its strategic canvas. Customers will have to feel the
differentiation.
Divergence
The value curve of blue ocean strategy always stands apart from
the competitors. Reactively formed strategies tries to keep up
with the competition, thus loosing uniqueness.
Divergence helps differentiating company from the industry’s
average profile and helps them to achieve a
4. leap in value on strategy canvas, such as low-cost business
model. It makes the company to stand apart from the rest.
Compelling tagline
A good strategy has a clear-cut and easy to communicate
tagline. Unless the customers and employees aren’t informed
about the strategy, it’s unlikely they would appreciate them.
‘Tagline’, a term that’s close to the heart of marketing folks is
also evolved from the strategy canvas of the Blue Ocean
Strategy. In simple words, it is a factor(s) which is newly created
by the organization and not present in the competitors of the
industry.
Characteristics of BOS
5. Advantages & Disadvantages
It’s grounded in data. Ignoring relevant competition.
It pursues differentiation and low
cost. Reinventing the wheel.
It creates uncontested market space.
Swimming too far.
It empowers through tools and
frameworks. No fish.
It provides a step by step process.
It maximizes opportunity while
minimizing risk.
It builds execution into strategy.
It shows how to create a win-win
outcome.
6. BOS Vs. ROS
Blue Ocean Strategy Red Ocean Strategy
Create uncontested market
space.
Compete in existing market
space.
Make the
competition irrelevant.
Beat the competition.
Create and
capture new demand.
Exploit existing demand.
Break the value-cost trade-off. Make the value-cost trade-off.
Align the whole system of a
firm’s activities in pursuit of
differentiation and low cost.
Align the whole system of a
firm’s activities with its strategic
choice of differentiation or
low cost.
8. Sequence of BOS
Companies need to build
their blue ocean strategy in
the sequence of buyer utility,
price, cost, and adoption.
This allows them to build a
viable business model and
ensure that a company profits
from the blue ocean it is
creating.
Here Kim and Mauborgne
articulate the strategic
sequence of Blue Ocean
Strategy and a commercially
viable blue ocean idea.
9. The database and research have continued to expand and grow
over the last ten years since the first edition of the book was
published and the strategic moves studied depict similar
patterns, whether blue oceans were created in for-profit
industries, non-profit organizations, or the public sector.
Here are a few brand examples of different industries and
sectors whose are adapted blue ocean strategic moves.
BOS Moves Globally
10. Canon’s strategic move, which created the personal desktop
copier industry, is a classic example of blue ocean strategy.
Traditional copy machine manufacturers targeted office
purchasing managers, who wanted machines that were large,
durable, fast, and required minimal maintenance.
Defying the industry logic, the Japanese company Canon
created a blue ocean of new market space by shifting the target
customer of the copier industry from corporate purchasers to
users. With their small, easy-to-use desktop copiers and printers
Canon created new market space by
BOS Moves of Canon
11. focusing on the key competitive factors that the mass of
noncustomers – the secretaries that used copiers – wanted.
By questioning conventional definitions of who can and should
be the target buyer, companies can often see fundamentally new
ways to unlock value. Path three of blue ocean strategy’s six
paths framework pushes companies to look across the chain of
buyers in their industry. By shifting focus to a previously
overlooked set of buyers, companies can unlock new value and
create uncontested market space.
BOS Moves of Canon
12. Reference
► W. Chan Kim and Renée Mauborgne, Blue
ocean strategy, Harvard Business School
Press.
► www.blueoceanstrategy.com.
► www.nasscom.in, Blue ocean strategy
presentation.
► www.studymarketing.org, Blue ocean
strategy