blue ocean strategy with international & indian case studies like ipl & tata nano
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Blue Ocean Strategy with some International & Indian case studiesTRANSCRIPT
Blue Ocean Strategyabout winning without fighting
to fight and conquer in all your battles is not supreme excellence; supreme excellence consists in breaking the enemy's resistance without fighting
Master Sun Tzu in ‘ Art of War’
BLUE OCEAN STRATEGY
Conventional Strategy DIFFERENTIATION OR LOW COST
Blue Ocean talks about Value InnovationDIFFERENTIATION AND LOW COST
Value Innovation• Region where a company’s
actions favourably affect both its cost structure and its value proportion to buyers
– Cost savings by eliminating and reducing the factors an industry competes on
– Buyer values is lifted by raising & creating elements the industry has never offered
– Over time, costs are reduced further as scale economies kick in
Buyer Value
Costs
Value Innovation
Comparison of Red vs. Blue
How to find new Value Curve Four Actions Framework
• Eliminate– Which of the factors that the industry takes for granted should be
eliminated?
• Reduce– Which factors should be reduced well below the industry's
standard?
• Raise– Which factors should be raised well above the industry's
standard?
• Create– Which factors should be created that the industry has never
offered?
Case Study 1 : US Wine Industry Pre-Yellow Tail
Case Study 1: US Wine Industry Post Yellow Tail
Case Study 1 :Value Curve for Yellow Tail• Eliminate
– Enological Terminology– Above the Line– Focus on Aging Quality
• Reduce– Vineyard Prestige & Legacy– Wine Complexity– Wine Range
• Raise– Price as compared to Budget– Retail Store Environment
• Create– Easy Drinking– Ease of Selection– Fun & Adventure
Case Study 2 : US Women Exercise Pre Curves
Case Study 2: US Women Exercise Post Curves
Case Study 2 :Value Curve for Curves• Reduce
– When compared to traditional gym• Price• Amenities• Equipment• Workout time• Availability of instructors
• Raise– Environment encouraging discipline & motivation– Same sex non-threatening
• Create– Womanly fun atmosphere
Case Study 3 : Cricket Before IPL
Case Study 3: Cricket After IPL
Case Study 3 :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
Is Tata Nano Really Creating a Blue Ocean ?
skillful leader subdues the enemy's troops without any fighting; he captures their cities without laying siege to them; he overthrows their kingdom without lengthy operations in the field
Master Sun Tzu in ‘ Art of War’
Reference : Blue Ocean Strategy By W. Chan Kim, Renée Mauborgne