blue ocean strategy ppt by a div

8/2/2019 Blue Ocean Strategy PPT by a Div

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Contents1. Blue Ocean Vs. Red Ocean Strategy2. Blue Ocean Strategy Tools3. Strategy Canvas and Four Action Framework4. Six Principles of Blue Ocean Strategy5. Formulating Blue Ocean Strategy6. Executing Blue Ocean Strategy


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Blue Ocean Vs. Red Ocean Strategy


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Blue Ocean Strategy

Create uncontested

market space

Make the competition

irrelevant

Create and capture

new demand

Red Ocean Strategy

Compete in existing

market space

Beat the competition

Exploit existing

demand

Blue Ocean vs. Red Ocean Strategy


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A diagnostic tool for building a

compelling blue ocean strategy

It captures the current state of play

in the known market space

Allow you to understand :

where the competition is currently

investing

the factors the industry currently

competes on in product, service and

delivery

what customers receive from existing

competitive offerings on the market

Strategy

Canvas

Blue Ocean Strategy Tools


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Four Action Framework

Eliminate Raise

Reduce Create


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Eliminate

Reduce

Raise

Create

Which of the factors that the industry

takes for granted should be eliminated?

Which factors should be reduced well

below the industry's standard?

Which factors should be raised well

above the industry's standard?

Which factors should be created that

the industry has never offered?


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The Case of Cirque du Soleil (A Circus Company)

Eliminate

Star performers

Animal shows

Aisle concession sales

Multiple show arenas

Create

Create

Theme

Refined environment

Multiple productions

Artistic music and dance

Reduce

Fun and humor

Thrill and danger

Raise

Unique venue


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Six Principles of Blue Ocean Strategy

Formulation Principles Execution Principles

1. Reconstruct market

boundaries

2. Focus on the big picture,

not the numbers

3. Reach beyond existing

demand4. Get the strategic

sequence right

1. Overcome key

organizational

hurdles

2. Build execution into

strategy


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FormulatingBlue Ocean Strategy


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1. Reconstruct Market Boundaries

Head-to-Head Strategy Blue Ocean Strategy

Focus on rivals within

industry

Focuses on competitive

position within strategic

group

Focuses on better

serving the buyer group

Looks across alternative

industries

Looks across strategic

group within industry

Redefines the industry

buyer group


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1. Reconstruct Market Boundaries

Head-to-Head Strategy Blue Ocean Strategy

Focuses on maximizing

the value of product orservice offerings within

the bounds of its

industry

Focuses on adapting to

external trends as they

occur

Looks across to

complementary productand service offerings

Participates in shaping

external trends over time


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Focus on the

Big Picture, not

the Numbers

The Four Steps of

Visualizing Strategy

Visual Awakening

Visual Exploration

Visual Strategy Fair Visual Communication

2. Focus on the Big Picture, not the Numbers


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Compare your business with your

competitors' by drawing your "as is"

strategy canvas

See where your strategy needs to

change

Visual

Awakening


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Go to the field to explore the six

paths to creating blue oceans

Observe the distinctive advantages

of alternative products and services

See which factors you should

eliminate, create, or change

Visual

Exploration


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Draw your "to be" strategy canvas

based on insights from field

observations

Get feedback on alternative

strategy canvases from

customers, competitors'

customers, and noncustomers

Use feedback to build the best "to

be" future strategy

Visual

Strategy

Fair



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Distribute your before-and-after

strategic profiles on one page for

easy comparison

Support only those projects and

operational moves that allow your

company to close the gap to

actualize the new strategy

Visual

Communication



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3. Reach Beyond Existing Demand

The Three

Tier of Non-

customers

First tier: "Soon to be" non-

customers who are the edge of

your market, waiting to jump ship

Second tier: "Refusing" non-

customers who consciously

choose against your market

Third tier: "Unexplored" non-

customers who are in markets

distant from yours


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4. Get The Strategic Sequence Right

The Sequence of Blue Ocean Strategy

Buyer utility

Is there exceptional buyer

utility in your business idea?

Price

Is your price easily

accessible to the mass of

buyers?

Adoption

What are the adoption

hurdles in actualizing yourbusiness idea?

Cost

Can you attain your cost

target to profit at yourstrategic price?

A commercially viable

blue Ocean idea


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5. Overcome Key Organizational Hurdles

Overcome KeyOrganizational

Hurdles

Cognitive

Hurdle

Resource

Hurdle

Motivational

Hurdle

Political

Hurdle


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Ride the "Electric Sewer" Meet with Disgruntled Customers

Redistribute resources to your hot

spots Redirect resources from your cold

spots

Engage in horse trading

Cognitive

Hurdle

(status quo)

Resource

Hurdle


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Motivational

Hurdle

Political

Hurdle

Zoom in on Kingpins (key influencers) Place kingpins on a fishbowl Atomize to get the organization to

change itself

Secure a consigliore on your top

management team

Leverage your angels and silence

your devils


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5. Build Execution Into Strategy

Fair Process of Strategy

Strategy Formulation Process

Fair Process - Engagement, Explanation, Expectation clarity

Attitudes

Trust and Commitment - "I feel my opinion counts"

Behaviour

Voluntary Cooperation - "I'll go beyond the call of duty"

Strategy Execution

Exceeds Expectation - self initiated


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blue ocean strategy ppt by a div

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