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Navigate to new Blue Oceans
Avoid the Red Ocean

                 3
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.
Navigate to Blue Oceans

                          5
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.



    6
Set New Strategic Directions




                           7
Navigate to BIG Blue Oceans
How?




9
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.
Creative Thinking

11
Structured Brainstorming
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.
Create a Value Innovation Curve
Continuous Value Innovation




                              15
Blue Ocean Case Study: Formule1
Formule1: Value Innovation Curve
    Value                         Eliminate                  Reduce     Raise
   High



                                                                      Formule1

Average

                                      Value Curve Hotel **


                    Value Curve Hotel *

  Low




                                                                                 Key Elements
          copyright Kim & Mauborgne
The “Value Created” by Formule1
Formule1: Value Innovation Curve
     Value                       Eliminate                   Reduce     Raise     Create

   High

                                                                      Formule1

Average

                                      Value Curve Hôtel **


                      Value Curve Hôtel *
    Low




                                                                                 Key Elements
          copyright Kim & Mauborgne
Ready, Set, Go. . .




20
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

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Value Innovation

  • 1.
  • 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. 6
  • 7. Set New Strategic Directions 7
  • 8. Navigate to BIG Blue Oceans
  • 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.
  • 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
  • 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