You are on page 1of 15

INTRODUCTION

Blue Ocean strategy is a book published in 2005 and


written by W. Chan Kim and Rene Mauborgne
They argued companies can succeed not by battling
competitors, but rather by creating Blue Oceans
1.
2.
3.
4.

Create uncontested market space


Make the competition irrelevant
Create and capture new demand
Room for highly profitable growth

The book presents analytical frameworks and tools to


foster an organization's ability to systematically create
and capture blue oceans

PART 1

Blue Ocean Strategy

Analytical Tools and Framework

PART 2

PART 3
Principles of Blue Ocean Strategy

BLUE OCEAN STRATEGY VS RED OCEAN


STRATEGY
'Blue' refers to fresh & clean
Innovation based
Has a unique stand
Create new market space
Break the Value-Cost tradeof

'Red' refers to blood


Competition based
Same as its competitors
Competing in existing market space
Make the Value-Cost tradeof

Focus on demand

Focus on supply

Focus on bigger picture

Focus on numbers

IMPORTANCE OF BLUE OCEAN STRATEGY


Its grounded in data
It pursues diferentiation and low cost
It creates uncontested market space
It provides a step-by-step process
It increases opportunity while decreases risk
It builds execution into strategy
It shows you how to create a win-win outcome

STRATEGY CANVAS
A diagnostic framework developed by W. Chan Kim and
Renee Mauborgne for building a blue ocean strategy.
It allows you to understand:
1. where the competition is currently investing;
2. the factors the industry currently competes on in
products and services;
3. what customers receive from existing competitive
oferings.

FOUR ACTIONS FRAMEWORK

BENEFITS OF THE ERRC GRID


It pushes them to simultaneously pursue diferentiation
and low cost to break the value-cost trade of.
It is easily understood by managers at any level.
Helps companies to discover the range of implicit
assumptions they unconsciously make in competing.

SIX PATH FRAMEWORK

TIPPING POINT LEADERSHIP


To achieve a strategic shift at low cost, focus on the extremes
the people, acts, and activities that exert a disproportionate
influence on performance.
By single-mindedly focusing on points of disproportionate
influence, tipping point leadership helps managers topple the
four hurdles to strategy execution quickly and at a low cost by
answering the following questions:
1. What factors or acts exercise a disproportionately positive influence on
breaking the status quo?
2. On getting the maximum bang out of each buck of resources?
3. On motivating key players to aggressively move forward with change?
4. And on knocking down political roadblocks that often trip up even the
best strategies?

FAIR PROCESS
Engagement
Explanation
Expectation Clarity

CONCLUSION

THANK YOU

You might also like