final blue ocean ppt

7/28/2019 Final Blue Ocean Ppt

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Blue Ocean

Strategy

How to create uncontested market space and

make the competition irrelevant.

about winning without fighting


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to fight and conquer in all your battles is not

supreme excellence; supreme excellence consistsin breaking the enemy's resistance without

fighting

Master Sun Tzu in Art of War


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What does Blue Strategy!!

The aim of BOS is not to out-perform the

competition in the existing industry, but

to create new market space or a blue ocean,

thereby making the competition irrelevant.

BOS is the simultaneous pursuit ofdifferentiation and low cost.


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Summary of Blue Ocean Strategy

New Market Space

Continuing Creation of Blue Oceans

Impact of Creating Blue Oceans

Rising Imperative of Creating Blue Oceans

From Company and Industry to Strategic Move

Value Innovation

Formulating and Executing Blue Oceans


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6 principles of Blue Ocean Strategy

1. Reconstruct market boundaries

2. Focus on Big picture, not on the numbers

3. Reach Beyond existing demand4. Get the Strategic Sequence right

5. Overcome Key organizational Hurdles

6. Build Execution into strategy.


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The Six Conventional Boundaries of Competition

Path 1: Look Across Alternative Industry

Path 2: Look Across Strategic Groups within Industries

Path 3: Look Across the Chain of Buyers

Path 4: Look Across Complementary Scope of Product &Services

Path 5: Look Across Functional or Emotional Appeal toBuyers

Path 6: Look Across Time


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Red Ocean v/s Blue Ocean


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4 Action Framework


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4 Action FrameworkThe Case of Cirque du Soleil(A Circus

Company)

Eliminate Reduce Star Performers

Animal Shows Aisle Concession Sales

Multiple Show Arenas

Fun and Humor

Thrill and Danger

Create Raise Theme

Refined Environment

Multiple Productions

Artistic Music and dance

Unique Venue.


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VALUE INNOVATION

Cost savings are

made by

eliminating and

reducing the factors

an industry

competes on.

Buyer value is lifted

by raising and

creating elements

never offered

Thereby opening up

new and

uncontested market

space

ELIMINATE

REDUCE

RAISE

CREATE


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Reaching Beyond ExistingDemands


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Reaching Beyond ExistingDemands

Three Tiers of non customers

First Tier: Soon to be

Second Tier: Refusing

Third Tier: Unexplored


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Three Principles of Fair Process

Buyers Utility (Is there exceptional Buyer

Utility into your Business idea?)

Price (Is Your price is easily accesible to thetarget mass of buyers?)

Cost (Can you attain your cost target toprofit at your strategic price?)

Adoption (What are the Adoption hurdles in actualizingyour business idea? Are you adressing them up front?)

A Commercially viable Blue

Ocean Idea


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Sequence of Blue Ocean Strategy

1. Buyer Utility: Does it offer exceptional utility,create value addition to customers.

2. Price: Is your price attractive enough for mass ofthe target buyers.

3. Cost: Can you earn healthy profit margin.

4. Adoption: Overcoming hurdles from all kind ofpossibilities.


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Two key Implementation Risk

Organizational Risk

4 key hurdles that blocks theimplementation of the

strategy

Tipping point

Leadership(TPL)

Management RiskDistrust can derail the

execution of blue ocean

strategy

Fair Process


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Why Fair Process?


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FOUR ORGANISATIONAL HURDLES TO

STRATEGY EXECUTION


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Organizational Hurdles

Cognitive hurdles

mental blocks that

keeps from realizing a

need for change

Strategies

facing individual

operational problems

Resource hurdles

limited resources toexecute a strategic

shift

Strategies

identify the cold andhot spots and

redistribute resources

to hot spots


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Organizational Hurdles

Motivational hurdles

blocks in motivating

employees in

executing a newstrategy

Strategies

seek mass

concentration over

mass mobilization

Political hurdles

strategic shift is

blocked by powerful

vested interests

Strategies

leverage angels, devils,

and the advisor


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Strategy Canvas

O

F

F

E

R

I

N

G

L

E

VE

L

Competing Factor


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Cricket Before IPL

Spectator Time Class ic Technique Value of Team

Reputation

Emphasis on Patience

& Perseverance

Entertainment Pacy Definite Result Athleticism

Test Cricket One Day

Low

High


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Cricket After IPL

Spectator

Time

Classic

Technique

Value of Team

Reputation

Emphasis on

Patience &

Perseverance

Entertainment Pacy Definite Result Athleticism City Loyalty Open to

Dummies

Test Cricket

One Day

20-20

Low

High


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Value Curve For IPL

Reduce Spectator Time Invested (Competes with Movie/Football)

Emphasis on Classic Techniques (Batting/Bowling)

Emphasis on Patience, Perseverance

Raise Emphasis on Athleticism

Pace of the Game

Entertainment with Bollywood, Cheerleaders etc.

Certainty of Result

Create City Loyalty

Welcome to Dummies

final blue ocean ppt

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