blue ocean strategy
By: G.E Zafran
ATENEO-MBA REGIS Program
Go where profits and growth are-and where
the competition isn’t
Red versus blue
Red Ocean Strategy
Blue Ocean Strategy
Compete in existing market space
Create uncontested market space
Beat the competition
Make the competition irrelevant
Exploit existing demand
Create and capture new demand
Make the value-cost trade-off
Break the value-cost trade-off
Align the whole system of a
company’s activities with its
strategic choice of differentiation
or low cost
Align the whole system of a
company’s activities in pursuit of
differentiation and low cost
Six paths to
blue ocean strategy
Industry
Strategic group
From
Competing
Within
Buyer group
Scope of Product or service
offering
To Creating
Across
Functional-emotional orientation
of an industry
Time
The six conventional boundaries of competition
Strategy canvas of ( yellow tail)
14
12
10
8
6
5
4.5
4
2
3.5
6
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Four actions framework
Reduce:
Which factors should
be reduced well
below the industry’s
standard
Create:
Eliminate:
Which of factors
that the industry
takes for granted
should be
eliminated?
A new Value
Curve
Raise:
Which factors should
be raised well above
the industry’s standard
which factors
should be created
that the industry
has never offered
Minimizing risks & maximizing opportunities in
formulation & executing blue ocean creation
Formation Principles
Formulation Risks
Reconstruct market boundaries
Search Risk
Focus on the big picture, not the
numbers
Planning Risk
Reach beyond existing demand
Get the strategic sequence right
Execution Principles
Overcome key organizational
hurdles
Build execution into strategy
Scale Risk
Business model Risk
Execution Risks
Organization Risk
Management Risk