Blue Ocean Strategy

• Explain Who developed the Blue Ocean Strategy• Explain What is a Business Universe

• Differentiate between Blue Ocean and Red Ocean• Describe the Importance of Blue Ocean Markets• Explain Key Terms Related to Blue Ocean Strategy• Describe Ways to Create Blue Oceans

• Explain Steps to Create a Blue Ocean Strategy • List the Blue Ocean Strategy Tools

• Explain What is Meant by Value Innovation• Explain What is Tipping Point Leadership• Explain What is the ERRC Grid

• Explain the Use of the Buyer Utility Map• Explain Steps for Strategy Reorientation & Execution

• List the Core Values to Drive Innovation

• Describe How to Choose Right Strategic Approach

Objectives

Flynn is not sure what kind of business he should start.

He knows that if he tries to venture into the field of electronics and consumer

goods, his business would face a lot of tough competition from the existing

players in the field.

Introduction

The market space of electronics and consumer goods is so crowded that in

order for his business to succeed, Flynn would have to beat the existing

competition and also exploit the existing demand.

Introduction

Introduction

Flynn’s ex-boss and a long time friend, Mark Yardley comes to Flynn’s rescue.

Mark tells Flynn that in order to start a successful business venture, it is crucial

that Flynn’s business should create a unique and uncontested market space just

for itself.

In such a market space which is free from competition, Flynn can be sure that his

business can easily and to a greater extent surely succeed.

Mark tells Flynn to carefully study and implement the ‘Blue Ocean Strategy’ for

his business.

Introduction

Mark tells Flynn that in order to implement the ‘Blue Ocean Strategy’ he would have to come up with a business idea that will create a new uncontested

market space for his business.

Introduction

Hence, you can understand that in order to succeed in any business, an

organization and its management should always try to adopt a strategy such as the ‘Blue Ocean Strategy’ to rid itself of the

tough competition and create a new free market space for itself.

Introduction

Let us learn about the ‘Blue Ocean Strategy’ in detail.

• W. Chan Kim and Renee Mauborgne developed the “Blue Ocean Strategy” concept. This concept was first presented in their book titled “Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant.”

Who developed the concept of Blue Ocean Strategy?

Blue Ocean Strategy versus Red Ocean StrategyLet us know look at some of the differences between the blue ocean strategy versus the red ocean strategy.

In this concept, a market space is created which is free from any competition.

It involves competing in an existing market

space

Competition is irrelevant here and it has no effect on the success of a business.

It involves beating the competition

Importance of Blue Ocean Markets

• In red ocean market space, the competition is very severe and cut throat. Hence “Blue Oceans” are important and it is a shot way to success.

• When the competition is heavy, the companies have to reduce their price to beat others. It leads to reduction in profits and growth.

Steps to Create a Blue Ocean Strategy

• Step 3: Reach Beyond Existing Demand

• Step 1: Create Uncontested Market Space

• Step 2: Focus on the Big Picture

• Step 4: Focus on Getting the Strategic Sequence Right

The following are the four steps that you need to follow to create a ‘Blue Ocean Strategy:

Let us look at each in detail.

This is a DEMO Course On – Blue Ocean strategy.

Join MSG Premium Membership and Get Access to around 120 Courses + New courses added every week.

What You Get:

1.View All Courses Online.2.Download Powerpoint

Presentation for Each Course.

3.Do the Knowledge Checks for Each Course.

ManagementStudyGuide.com