The document discusses the concepts of 'red oceans' and 'blue oceans' in competitive strategy, where red oceans represent saturated markets competing primarily on price, while blue oceans focus on creating uncontested market space through differentiation and cost innovation. It introduces a strategy framework known as value innovation, including the four actions of reducing, eliminating, raising, and creating factors to develop a new value curve. The document also mentions a case study on Formula 1 to illustrate the application of these strategies.

2. Navigate to new Blue Oceans

3. Avoid the Red Ocean
3

4. What is a Red Ocean™?
• A market in which the competition have
nothing left to compete on other than PRICE
• Examples
– Telephony (Voice Services)
– Fitness
– Air Travel
– Managed Services
Blue Ocean, Red Ocean, Strategy Canvas and other related marks are copyright © Kim, W. Chan and Mauborgne, Renee.
Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant. Boston: Harvard Business School Publishing, 2005.

5. Navigate to Blue Oceans
5

6. What is a Blue Ocean™?
A competitive strategy in which the
competition is made irrelevant (or much less
relevant) through an approach that pursues
differentiation AND low-cost to open a
previously un-tapped or under-served market
Blue Ocean, Red Ocean, Strategy Canvas and other related marks are copyright © Kim, W. Chan and Mauborgne, Renee.
Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant. Boston: Harvard Business School Publishing, 2005.
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7. Set New Strategic Directions
7

8. Navigate to BIG Blue Oceans

9. How?
9

10. Blue Ocean™ Strategy:
Value Innovation
• Simultaneous COSTS
pursuit of
Differentiation and
VALUE
Low Cost INNOVATION
• The Cornerstone
of Blue Ocean BUYER
Strategy VALUE
Blue Ocean, Red Ocean, Strategy Canvas and other related marks are copyright © Kim, W. Chan and Mauborgne, Renee.
Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant. Boston: Harvard Business School Publishing, 2005.

11. Creative Thinking
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12. Structured Brainstorming

13. Blue Ocean™ Strategy:
The Four Actions Framework
REDUCE
How do we Which factors should
be reduced well below
the industry standard?
create a new
value curve that
ELIMINATE CREATE
will differentiate Which of the factors
that the industry takes
for granted should be
A New
Value
Which factors should
be created that the
industry has never
Curve
us from the eliminated? offered?
competition in a
way that makes RAISE
Which factors should
them irrelevant? be raised well above
the industry standard?
Blue Ocean, Red Ocean, Strategy Canvas and other related marks are copyright © Kim, W. Chan and Mauborgne, Renee.
Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant. Boston: Harvard Business School Publishing, 2005.

14. Create a Value Innovation Curve

15. Continuous Value Innovation
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16. Blue Ocean Case Study: Formule1

17. Formule1: Value Innovation Curve
Value Eliminate Reduce Raise
High
Formule1
Average
Value Curve Hotel **
Value Curve Hotel *
Low
Key Elements
copyright Kim & Mauborgne

18. The “Value Created” by Formule1

19. Formule1: Value Innovation Curve
Value Eliminate Reduce Raise Create
High
Formule1
Average
Value Curve Hôtel **
Value Curve Hôtel *
Low
Key Elements
copyright Kim & Mauborgne

20. Ready, Set, Go. . .
20

21. Sales David R Ednie
President & CEO
Performance SalesChannel Europe SARL
Ph: +33 676 600 925
Email: david@saleschannel-europe.com
Motivation Blog: http://saleschannel.blogspot.com
Website: www.saleschannel-europe.com