Creating Uncontested
Market Space
and Making the
Competition Irrelevant
NUR SHAZLEEN YAZMEEN AHMAD HAWARI
2008738521
MOHD FAZLI AZMAN
2008270034
ZULKIFLEE ABD RAHIM
2008720413
ABOUT THE BOOK
 Author: W. Chan Kim &
: Renee Mauborgne
 Publisher: Harvard Business
School Press
 Pages: 256 pp
ABOUT AUTHOR
W. Chan Kim
W. Chan Kim is a professor
of strategy and international
management at INSEAD in
Fontainebleau, France.
Previously, he taught at the
University of Michigan
Business School. He has
written for numerous
business journals, the
Financial Times, The Wall
Street Journal and The New
York Times, and is a founder
of the Value Innovation
Network. He is an advisory
member for the European
Union and the Country
Advisor to Malaysia
Renee Mauborgne
Renée Mauborgne is a
Distinguished Fellow at
INSEAD, where she is a
professor of strategy and
management. She is also a
Fellow of the World
Economic Forum and
published numerous articles
on strategy and managing
multinational corporations.
• Reconstruct
Market
Boundaries
• Focus on the Big
Picture, Not the
Numbers
• Reach Beyond
Existing
Demand
• Get the Strategic
Sequence Right
PART THREE: Executing Blue Ocean
Strategy
• Creating Blue
Oceans
• Analytical Tools
& Frameworks
PART TWO: Formulating Blue Ocean
Strategy
PART ONE: Blue Ocean Strategy
CHAPTER STRUCTURE
• Overcome Key
Organizational
Hurdles
• Build Execution
into Strategy
• Conclusion: The
Sustainability
and Renewal of
Blue Ocean
Strategy
BLUE OCEAN STRATEGY
 The high growth and profits an organization can
generate by creating new demand in an uncontested
market space
 Authors argue that red ocean strategies while
necessary, are not sufficient to sustain high
performance. Companies need to go beyond
competing. To seize new profit and growth
opportunities they also need to create blue oceans
Red Ocean Vs Blue Ocean
RED OCEAN
BLUE OCEAN
Compete in existing market
Create uncompetitive market
Beat the competition
Make competition irrelevant
Exploit the existing demand
Create and capture new demand
Make value-cost demand
Create value-cost trade off
Firm strategies either low cost or
differentiation
Firm strategies is both low cost and
differentiation
*Red Ocean Strategy is the way that fights hard in existing market while Blue
Ocean Strategy values innovation on getting new market
Creating Blue Ocean
Eliminate
Reduce
Raise
Create
Strategy Canvas – Casella Wines
High
Low
Price
Wine range
Vineyard prestige
Use of Above-the-line
Wine
enological marketing Aging and legacy
quality
complexity
terminology
Four Action Framework
Reduce
• Which factor
should be reduced
well below
industry
standards?
Eliminate
• Which of the
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?
Create
• Which factors
should be created
that the industry
has never offered?
Six Principles of Blue Ocean Strategy
Executing Blue
Ocean Strategy
5th Principle:
6th Principle:
• Overcome Key
Organizational
Hurdles
• Build Execution
into Strategy
Formulating Blue Ocean Strategy
1st Principle
Reconstruct
Market
Boundaries
Look Across
Alternative
Industries
Look Across
Strategic
Groups within
Industries
Look Across the
Chain of Buyers
Look Across
Complementary
Product &
Service
Offerings
Look Across
Functional or
Emotional
Appeal to
Buyers
Look Across
Time
2nd Principle
Focus on the Big
Pictures, Not the
Numbers
• Go into the field to explore the
6 paths to create Blue Ocean.
• Observe distinctive advantages
of alternative products &
services.
• See which factors should
eliminate, create or change.
• Compare your business
with competitor’s by
drawing your strategy
canvas.
• Change your strategy where
needed.
• Distribute your before-andafter strategic profiles on one
page for easy comparison.
• Support only those projects
and operational moves that
allow your company to close
the gaps to actualize the new
strategy.
Visual
Awakening
Visual
Exploration
Visual
Communication
Visual Strategy
Fair
• Draw “to-be” 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.
3rd Principle
Reach Beyond
Existing
Demand
First Tier
Your
Market
“Soonto-be”
noncus
tomer
who
are on
the
edge of
the
market
,
waiting
to
jump
ship.
Second Tier
“Refusin
g”
noncust
omer
who
consciou
sly
choose
against
the
market.
Third Tier
“Unexplored”
noncustomers who are in
the markets distant.
Get the
Strategic
Sequence Right
4th Principle
NO - Rethink
YES
Price
• Is there exceptional
buyer utility in your
business?
• Is your price easily
accessible to the mass of
buyers?
YES
Adoption
• Can you attain your cost
target to profit at your
strategic price?
Buyer Utility
YES
NO - Rethink
• What are the adoption
hurdles in actualizing
your business idea?
• Are you addressing them
up front?
Cost
NO - Rethink
YES
NO - Rethink
A
Commercia
lly Viable
Blue Ocean
Idea
5th Principle
Overcome Key
Organizational
Hurdles
Executing Blue Ocean Strategy
Let Managers
experience it
FIRST-HAND
Focus on HOT
SPOT issues,
search out COLD
SPOT
Zoom on Kingpins
Put Kingpins into
fishbowls
• Transparency
• Inclusion
• Fair Process
Leverage the
ANGELs
Silence the
DEVILs
6th Principle
Build
Execution
into Strategy
Create a culture of
trust and commitment,
the rest shall come
naturally.
Explanation
Expectation
Clarity
Engagement
Fair
Process
CONCLUSION
• Be clear of elements that add-value. Keep useless elements that devalue will not
bring any good. Reduce or eliminate them and reserve space to create and raise
LESSON 1
those which are more useful.
• Focus on the things that is important. Do not always follow the crowd, stand
alone and make hard decision which different from the norm. Walk you talk.
LESSON 2
• Sad truth! People will only appreciates when your effort adds value to their life.
LESSON 3
• Options that you have now is not necessarily the best, always look for
alternatives and dare to challenge conventional wisdom.
LESSON 4
• Everything that happens, happens for reason. Look at things from different
perspectives.
LESSON 5
CONCLUSION
• Push yourself to the limit and strive hard to achieve the goals. NO free lunch in
this world and you shall get what you deserve based on your effort.
LESSON 6
• If you can't walk, you can't fly. Proper planning is always the most crucial step.
LESSON 7
• Big problem often comes from small problems. Work backward by breaking
into smaller pieces while solving big problem
LESSON 8
• Focus on fair process, so the same principle applies in life. Be fair.
LESSON 9
• Renewal of Blue Ocean Strategy
LESSON 10
LESSON LEARNT
To sustain in the industry, be CREATIVE and
INNOVATIVE. Do things DIFFERENTLY from the
market with LOWEST COST possible.
In order to be DIFFERENT from competitors, you
have to think OUT OF THE BOX!
Get your TEAM to SHARE the same vision to
achieve missions and objectives.