Karthik Krishnamoorthy

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• Karthik Krishnamoorthy
• BUS 240 - eCommerce

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(No Transcript)
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Red Ocean Vs Blue Ocean
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Creating Blue Ocean Value Innovation

• Companys cost act favorably for both innovators
  and buyers
• Cost savings occur by eliminating and reducing
  factors an industry competes
• Buyer value is provided by never before offered
  products
• Cost is reduced further as scale of economy kicks
  in

VI
COST
VI
VALUE
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Creating Blue OceanTools

• Strategy Canvas
• diagnostic and action framework for building a
  compelling strategy
• X-Y Axis, where X represents factors and Y
  represents company position
• E.g Yellow Tail Wine

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Creating Blue OceanTools

• Four Action Framework
• Eliminate, Reduce,Raise and Create

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Creating Blue OceanTools

• ELIMINATE-REDUCE-RAISE-CREATE GRID
• E.g Yellow Tail Wine

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Creating Blue OceanThree Characteristics

• For a good strategy
• Focus - on the important areas and not on every
  single factor
• Divergence - away from the competitors offerings
• Tagline - has a simple easy to communicate

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Creating Blue OceanSix Principles

• Formulation Principles

Reconstruct Market Boundaries overcome
believes.
Reach beyond existing Demand go for uncontested
space.
Get the strategic sequence right value
innovation first.
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Creating Blue OceanSix Principles
Buyer utility
Is there exceptional buyer utility in your
business idea?
No ? Rethink
YES
Price
Is your price easily accessible to the mass of
buyers?
No ? Rethink
YES
Cost
Can you attain your cost target to profit at your
strategic price?
No ? Rethink
YES
Adoption
What are the adoption hurdles in actualizing your
business idea? Are you addressing them up front?
No ? Rethink
YES
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Creating Blue OceanSix Principles

• Execution Principles
• Overcome key organizational hurdles
• Cognitive, resource and political hurdles
• Build execution into strategy
• Fair process strategy formulation
• Examples
• Yellow Tail
• Southwest
• Cirque du Soleil
• Home Depot

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Thank you

• Recommended !