blue ocean ppt

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• BLUE OCEAN STRATEGY

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INTRODUCTION ..

• Blue Ocean Strategy is a book published in 2004
  written by W. Chan Kim and Renée Mauborgne,
  professors at INSEAD, and the name of the
  marketing theory detailed on the book.
• The book presents analytical frameworks and tools
  to foster an organization's ability to
  systematically create and capture "blue oceans
  unexplored new market areas.  

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Book layout and concepts
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What is blue ocean strategy?

• Create new spaces called Blue oceans
• Uncontested market space
• Views competition as vicious and irrelevant
• Focus on market free from competitors
• Aims to capture new demand
• Introduce new product with superior features
• Charge higher prices for unique features
• Profits increase

Example apple ventured into digital music in
2003 with its product itunes.
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Blue Ocean Strategy Tool
Strategy Canvas

• A diagnostic tool for building a compelling blue
  ocean strategy.
• It captures the current state of play in the
  known market space.
• Allows you to Understand
• Where the competition is currently investing.
• The factors the industry currently competes on in
  product , service and delivery.
• What customers receive from the existing
  competitive offerings on the market.

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SIX principles of blue ocean strategy
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FORMULATION PRINCIPLES
RISK FACTOR EACH PRINCIPLE ATTENUATES

• Reconstruct market boundaries
• Focus on the big pictures, not the numbers
• Reach beyond existing demand
• Get the strategic sequence right

• Search risk
• Planning risk
• Scale risk
• Business model risk

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EXECUTION PRINCIPLES
RISK FACTOR EACH PRINCIPLE ATTENUATES

• Overcome key organizational hurdles
• Build execution into strategy

• Organizational risk
• Management risk

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Defining Red and Blue Ocean
What is Red, what is Blue
Red Ocean Strategy
Blue Ocean Strategy

• Compete in existing market space
• Beat the competition
• Exploit existing demand
• Make the Value-cost trade off
• Align strategy choice of differentiation or low
  cost

• Create uncontested market space
• Make the competition irrelevant
• Create Capture new demands
• Break the Value-Cost Trade off
• Simultaneous pursuit strategy of differentiation
  and low cost

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Examples of Red And Blue Oceans
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• With Starbucks, the blue ocean model and
  framework has allowed the company to explore new
  market spaces that have not been competitive, or
  actively utilized by players existing in the
  present business environment.
• Starbucks has been able to create new demand,
  rather than fight over and encroach existing
  competitive space.
• Experience rapid growth as well as enjoy
  increased profits.
• Eradicates competition
• Uses both Red and Blue ocean strategy
• Idea of simple coffee with modern comfort
  combined

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Conclusion
Focus on the Big Picture, Not the Numbers
Compare your business with your competitors by
drawing your As Is Strategy Canvas
Go into the field to explore the six paths to
creating blue oceans
Draw your To Be Strategy Canvas based on insights
from field observations
Distribute your before-and-after strategic
profiles on one page for easy comparison
See where your strategy needs to change
Observe the distinctive advantages of alternative
products and services
Get feedback on alternative strategy canvases
from customers, competitors customers and non
customers
Support only those projects and operational moves
that allow your company close the gaps to
actualize the new strategy
See which factors you should eliminate, create or
Change
Use feedback to build the best to be future
strategy
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Thank You! MADE BY PUSHKAR YESHASWI ABHINAV
VERMA ANANYA SRIVASTVA PUNITA VERMA