blue ocean strategy ppt
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managementTRANSCRIPT
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www.blueoceanstrategy.com Kim&Mauborgne
blueoceanstrategy
Gowhereprofitsandgrowthareandwherethecompetitionisnt
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Data:150strategicmoves,morethan30industries,over100years(18002000)
Variablesconsidered:industrial,organizationalandstrategic
Researching the history of blue ocean creation
www.blueoceanstrategy.com Kim&Mauborgne
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Red versus blue
www.blueoceanstrategy.com Kim&Mauborgne
RedOcean StrategyCompeteinexisting marketspace
Beat thecompetition
Exploit existingdemand
Makethevaluecosttradeoff
Alignthewholesystemofacompanysactivitieswithitsstrategicchoiceofdifferentiationor lowcost
BlueOceanStrategyCreateuncontested marketspace
Make thecompetitionirrelevant
Createandcapturenewdemand
Breakthevaluecost tradeoff
Alignthewhole systemofacompanysactivitiesinpursuitofdifferentiationandlowcost
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Six paths to blue ocean strategy
www.blueoceanstrategy.com Kim&Mauborgne
FromCompetingWithin
ToCreatingAcross
Thesixconventionalboundariesofcompetition
Industry
Strategicgroup
Buyer group
Scopeofproduct orserviceoffering
Functionalemotionalorientationofanindustry
Time
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Strategy canvas of [yellow tail]
www.blueoceanstrategy.com Kim&Mauborgne
High
Low
[yellowtail]
Premiumwines
Budgetwines
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Four actions framework
www.blueoceanstrategy.com Kim&Mauborgne
ANewValueCurve
EliminateWhichoffactorsthattheindustrytakesforgrantedshouldbe
eliminated?
ReduceWhichfactorsshouldbereducedwellbelow
theindustrysstandard?
RaiseWhichfactorsshouldberaised wellabove
theindustrysstandard?
CreateWhichfactorsshouldbecreated thattheindustryhasnever
offered?
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Minimizing r isks & maximizing opportunit ies in formulation & executing blue ocean creation
www.blueoceanstrategy.com Kim&Mauborgne
FormulationPrinciples FormulationRisks
ExecutionPrinciples ExecutionRisks
Reconstructmarketboundaries
Focusonthebigpicture,notthenumbers
Reachbeyondexistingdemand
Getthestrategicsequenceright
SearchRisk
PlanningRisk
ScaleRisk
BusinessModelRisk
Overcomekey organizationalhurdles
Buildexecutionintostrategy
OrganizationalRisk
ManagementRisk
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www.blueoceanstrategy.com Kim&Mauborgne
blueoceanstrategy
Howtocreateuncontestedmarketspaceandmakethecompetitionirrelevant.