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PRESENTED BY :
TANUSHREE RAY,
MINAKSHEE
KUMARI,
PRAYAG YADAV,
SANTOSH SAH, &
ROHIT KUMAR
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http://www.blueoceanstrategy.com/downloads/jacket.pdf -
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The Book and its Authors
ACCOLADES..
Over 2 million copies sold
Translated into over 41
foreign languagesa worldrecord
Taught as the major theory
of strategy at leading
business schools
Gives insights to CEOs,
Executives, Heads of State
and Prime Ministers
Prof Renee
Mauborgne
Prof Chan Kim
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How to create uncontested market
space and make competition
irrelevant..
The Theme of the Book
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Circue du SoleilCreating Uncontested Market Space and
Making the Competition Irrelevant
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ARED OCEAN?
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Red Ocean Strategy
Blue Ocean Strategy
How is it Different from
a Red Ocean?
Compete in existing market
space.
Beat the competition.
Exploit existing demand.
Make the value-cost tradeoff.
Align the whole system of a
firms activities with its strategic
choice of differentiation or low
cost.
Create uncontested marketspace.
Make the competition irrelevant
Create and capture new
demand
Break the value-cost trade-off
Align the whole system of a
firms activities in pursuit of
differentiation and low cost
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Why opt for Blue Ocean?
Supply exceeds demand.
Globalization .
Increasing price wars.
Shrinking profit margins.
Brands are becoming more similar.
Select based on price.
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BOS Logic: The Core Principles
Reconstruct Market
Boundaries
overcome believes.
Reach beyond
existing Demand
go for uncontested space.
Get the strategic
sequence right
value [innovation] first.
VIVI
COST
VALUE
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BOS Logic: Reconstruct market boundaries
IndustryFocuses on rivals within itsindustry
Strategic GroupFocuses on competitive position
within strategic group
Buyer GroupFocuses on better serving thebuyer group
Scope of Product andService Offerings
Focuses on maximizing the valueof product and service offerings
within the bounds of its industry
Functional-emotionalOrientation of an
Industry
Focuses on improving price-performance with the functional-emotional orientation of thisindustry
Time/Trends Focuses on adapting to externaltrends as they occur
Looks across alternativeindustries
Looks across strategic groupswithin its industry
Redefines the buyer group of theindustry
Looks across to complementaryproduct and service offerings thatgo beyond the bounds of itsindustry
Rethinks the functional-emotionalorientation of its industry
Participation in shaping external
trends over time
Boundaries of
Competition
Head-to-Head
Competition
Creating
New Market Space
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1. KBC Star Plus 2130-2200 5.62. KBC Star Plus 2100-2130 4.93. Kahaani Ghar Ghar Kii Star Plus 2200-2230 4.74. Kyunki Saas Bhi Kabhi Bahu Thi Star Plus 2230-2300 4.55. Kasautii Zindagii Kay Star Plus 2030-2100 3.76. Saat Phere Zee TV 2130-2200 2.97. Kasamh Se Zee TV 2100-2130 2.68. Kahiin To Hoga Star Plus 2300-2330 2.49. Ghar Ki Lakshmi Betiyann Zee TV 2200-2230 2.210. Banoo Mein Teri Dulhann Zee TV 2000-2030 2.111. Maayka Zee TV 2030-2100 1.912. Karam Apnaa Apnaa Star Plus 2000-2030 1.6
13. Kumkum
Pyara Sa Bandhan Star Plus 1300-1330 1.614. Bhabhi Star Plus 1330-1400 1.515. Sinndoor Tere Naam Ka Zee TV 1930-2000 1.516. Woh Rahne Waali Mehlon Ki Sahara One 2100-2130 1.417. Mamta Zee TV 1900-1930 1.218. Kyunki Saas Bhi Kabhi Bahu Thi Star Plus 1500-1530 1.219. Jabb Love Hua Zee TV 2230-2300 1.120. Saarrthi Star Plus 1430-1500 1.1
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BOS Logic: The Core Principles
Reconstruct Market
Boundaries
overcome believes.
Reach beyond
existing Demand
go for uncontested space.
Get the strategic
sequence right
value [innovation] first.
VIVI
COST
VALUE
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BOS Logic: Reach beyond existing demand
Core Customer Noncostumer
Soon-to-be-NC Refusing Customer
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Fords 1908 Model T
CNN 1980
Real-Time News 24/7 2002 Apples ipod
1970 The First Mouse
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BOS Logic: The Core Principles
Reconstruct Market
Boundaries
overcome believes.
Reach beyond
existing Demand
go for uncontested space.
Get the strategic
sequence right
value [innovation] first.
VIVI
COST
VALUE
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BOS Logic: Get the Strategic Sequence right
Buyer utility
Is there exceptional buyer
utility in your business idea?
Adoption
What are the adoption hurdles in
actualizing your business idea?
Are you addressing them up front?
Price
Is your price easily accessible to the
mass of buyers?
Cost
Can you attain your cost target to
profit at your strategic price?
A commercially viable Blue Ocean Strategy
YES
YES
YES
YES
No Rethink
No Rethink
No Rethink
No Rethink
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Buyer Utility MapThe buyer utility map helps managers look at this issue from the right perspective. It
outlines all the levers companies can pull to deliver exceptional utility to buyers aswell as the various experiences buyers can have with a product or service.
1.
Purchase
2.
Delivery
3.
Use
4.
Supplements
5.
Maintenance
6.
Disposal
Customer Productivity
Simplicity
Convenience
Risk
Fun and
Image
Environmental friendliness
The Six Stages of the Buyer Experience Cycle
TheSixUtilityLevers
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Buyer Experience CycleA buyers experience can usually be broken into a cycle of six stages, running
more or less sequentially from purchase to disposal. Each stage encompasses awide variety of specific experiences. At each stage, managers can ask a set of
questions to gauge the quality of buyers experience.
Purchase Delivery Use Supplements Maintenance Disposal
How long does it
take to find theproduct you need?
Is the place of
purchase attractive
and accessible?
How secure is the
transaction
environment?
How rapidly can
you make a
purchase?
How long does
it take to get theproduct
delivered?
How difficult is
it to unpack and
install the new
product?
Do buyers have
to arrangedelivery
themselves? If
yes, how costly
and difficult is
this?
Does the product
require training orexpert assistance?
Is the product easy to
store when not in use?
How effective are the
products features and
functions?
Does the product orservice deliver far more
power or options than
required by the average
user? Is in overcharged
with bells and whistles?
Do you need other
products and servicesto make this product
work?
If so, how costly are
they?
How much time do
they take?
How easy are they toobtain?
Does the product
require externalmaintenance?
How easy is it to
maintain and upgrade
the product?
How costly is
maintenance?
Does use of the
product createwaste items?
How easy is it to
dispose of the
product?
Are there legal or
environmental
issues in
disposing of theproduct safely?
How costly is
disposal?
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The Six Principles of
Blue Ocean Strategy Path 1- Look across
alternative industry
Path 2- Looking across
strategic groups within
industry
Path 3- Look Across theChain of Buyers
Path 4- Look Across
Complementary Product
and Service Offerings
Path 5- Look Across
Functional or Emotional
Appeal to Buyers
Path 6- Look Across Time
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What factors should
be eliminated that
the industry has
taken for granted?
Eliminate
What factors should
be reduced well
below the industry
standard?
Reduce
What factors should
be created that the
industry has never
offered?
Create
What factors shouldbe raised wellbeyond
the industry
standard?
Raise
Four Actions to create a BlueOcean
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ThankYou
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Please..