8/14/2019 BlueOceanStrategyPresentation.pdf

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www.blueoceanstrategy.com © Kim & Mauborgne

blue ocean strategy®

Go where profits and growth are –and where the competition isn’t

8/14/2019 BlueOceanStrategyPresentation.pdf

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•Data:

 150

 strategic

 moves,

 more

 than

 30

 industries, over 100 years (1800‐2000)

•Variables considered:

 industrial,

 

organizational and strategic

Researching the

 history

 of 

 

blue  ocean  creation

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8/14/2019 BlueOceanStrategyPresentation.pdf

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Red  versus blue

www.blueoceanstrategy.com © Kim & Mauborgne

Red Ocean Strategy

Compete 

in 

existing market 

space

Beat the competition

Exploit existing demand

Make the value‐cost trade‐off 

Align the whole system of  a 

company’s activities with its strategic 

choice of  differentiation or  low cost

Blue Ocean Strategy

Create 

uncontested market 

space

Make the competition irrelevant

Create and

 capture

 new

 demand

Break the value‐cost trade‐off 

Align the whole system of  a 

company’s activities in pursuit of  differentiation  and  low cost

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Six paths

 to

 

blue  ocean  strategy

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From Competing 

Within

To Creating

Across

The six conventional boundaries of  competition 

Industry

Strategic group

Buyer group

Scope of  product or service offering

Functional‐emotional orientation of  an industry

Time

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Strategy  canvas  of  [yellow  tail]  

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High

Low

[yellow tail]

Premium wines

Budget wines

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Four  actions  framework

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A New

 Value 

Curve

Eliminate

Which of 

 factors

 that

 the industry takes for 

granted should be 

eliminated ?

ReduceWhich factors should 

be reduced  well  below  the industry’s 

standard?

RaiseWhich factors should 

be raised well  above the industry’s 

standard?

Create

Which factors

 should

 

be created that the 

industry has never 

offered?

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Minimizing  r isks  &  maximizing  opportunit ies   in  

formulation  &  executing  blue  ocean  creation

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Formulation Principles Formulation Risks

Execution Principles Execution Risks

Reconstruct market boundaries

Focus on the big picture, not the numbers

Reach beyond existing demand

Get the strategic sequence right

Search Risk

Planning Risk Scale Risk

Business Model Risk

Overcome key organizational hurdles

Build execution into strategy

Organizational Risk

Management Risk

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blue ocean strategy®

How to create uncontested market space and 

make 

the 

competition 

irrelevant.