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BLUE OCEAN STRATEGY & SHIFT PPT PRESENTATION

Do you want to introduce blue ocean strategy to your colleagues or students? This brief PowerPoint presentation contains an overview of the main concepts of Blue Ocean Strategy and Blue Ocean Shift. Inside this blue ocean ppt presentation, you’ll find the definition of what is blue ocean strategy, what is blue ocean shift, the key tools of blue ocean strategy, how to implement blue ocean strategy by following the five-step process, and more.

You can download this introductory blue ocean presentation by clicking on the link below.

You might also be interested in these other resources:

What is Blue Ocean Strategy

Blue Ocean tools

About the Authors Chan Kim and Renée Mauborgne

What is Blue Ocean Shift

Blue Ocean Books

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WHAT IS? Blue Ocean Strategy- With Free PPT

Mannat Bhalla

Looking at the glistening vast sea is an experience. The majestic nature of the Blue Ocean , which can create and destroy, gives one goosebumps.

Ocean covers about 71% of Earth's Surface. The weather, temperature, and the accessibility of food for both humans and other living things are significantly influenced by the Ocean.

Ocean sustains all. Various species exist in the vast sea and are all interconnected in some way to the other in the food web.

Now, if we compare the Business Sector to the Ocean…

Why are we doing that? Just hear me out….

The Ocean has many fishes; the business sector today is filled with various businesses and opportunities. Every day, an innovation springs out; some make a name for themselves and change that particular sector of the vast business sector, whereas others simply cannot succeed and move on to a new thing.

Creative sectors flourish because they sell a new dream of innovation that excites customers to invest money in them. Also, they sell innovations that make that dream come true.

Since ancient times, successful business merchants have always sniffed out the need or the problem and solved it with their products, making a hand-in-hand profit.

In the vast sea of competition, businesses typically rival countless others for the same clients and resources. But is there a way to escape the tense, angry, crimson Ocean of conflict and set sail for uncharted territory?

The Blue Ocean Strategy is a philosophy that offers a fresh perspective on business innovation and growth.

"The only way to beat the competition is to stop trying to beat the competition" ~ W. Chan Kim.

The Blue Ocean Strategy, a corporate strategy, encourages businesses to bypass the traditional competition-driven strategy.

This strategy promotes the development of new markets or the reorganization of existing ones (the "blue ocean") as opposed to competing in crowded markets (the " Red Ocean "), where businesses must compete for a small pool of customers and struggle to stand out from the competition.

In a simple definition, it means carving out your own route and creating a unique workplace atmosphere for your business where competition is insignificant. Here is how you can utilize it:

Value Innovation :

The blue ocean strategy's core element is value innovation.

• Try to offer your clientele something wholly new.
• Finding out what customers want and meeting their needs in a way that sets you apart from the competition is what this entails.
• Think about Apple's ground-breaking iPhone, which combined a phone, music player, and internet device into a single device.

Recognize the " Six Paths ":

To find your Blue Ocean, think about the six-route framework.

• First, analyze Other Sectors and then adapt their effective strategies to your own.
• Locate competitors or alternatives outside of your direct industry.
• Look across buyer groups for new client segments or groups that your product or service might appeal to.
• Consider Complementary Goods and Services and decide what alternatives can enhance your primary good or service.
• Take into account the emotional or functional elements that your clients will find appealing.
• Consider how current trends may impact client preferences and needs in the future.

WHATS NEXT?

Errc stands for " eliminate, reduce, raise, create ":.

The ERRC grid is a practical tool for implementing the Blue Ocean Strategy.

• Firstly, it involves evaluating the factors that influence your industry and deciding which ones to enhance, improve, eliminate, or grow in order to offer exceptional value.
• By meticulously carrying out these four phases, you can establish a distinctive blue ocean strategy.

Execute with Precision:

Developing a blue ocean strategy is the first step. Execution is the next. Make sure your team is on board with the new strategy, and monitor all the progress. Be prepared to modify as you learn more from the market and customer feedback.

Continual Innovation:

The business world is changing, therefore, something that is today a blue ocean could eventually become a red ocean.

It is essential to support an inventive culture and be constantly on the lookout for new opportunities if we want to create blue oceans.

In the Nutshell

The blue ocean strategy offers a compelling way to avoid continual competition and discover untapped markets.

By focusing on value innovation, researching the six approaches, applying the ERRC grid, executing precisely, and maintaining a commitment to innovation, your business can leave its rivals in the Red Sea in the dust.

If you adopt an exploratory mindset, you might well find yourself in a universe with countless opportunities.

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 frequently asked questions:.

• What is the Blue Ocean Strategy, and how does it differ from traditional business strategies?
• Answer: The Blue Ocean Strategy is a business approach that focuses on creating uncontested market spaces rather than competing in overcrowded markets (the "red ocean"). It involves value innovation, which means offering unique value to customers. Additionally, traditional strategies often involve competing within existing market boundaries, while the Blue Ocean Strategy seeks to redefine those boundaries or create entirely new markets.
• How can my business identify a blue ocean opportunity?
• Answer: To identify a blue ocean opportunity, you can use the Six Paths Framework. This involves looking across industries, strategic groups, buyer groups, complementary products and services, functional and emotional appeal, and time. By exploring these six dimensions, you can uncover untapped market spaces and innovative ideas.
• What is the ERRC Grid, and how does it help in implementing the Blue Ocean Strategy?
• Answer: The ERRC Grid stands for Eliminate, Reduce, Raise, and Create. It's a strategic tool used to guide the process of value innovation. By evaluating factors in your industry and deciding what to eliminate, reduce, raise, or create, you can reshape your business strategy to deliver exceptional value and stand out in the marketplace.
• Can any business implement the Blue Ocean Strategy, or is it only for certain industries?
• Answer: The Blue Ocean Strategy is applicable to a wide range of industries and businesses, from startups to established corporations. It is not limited to a specific type of industry or size of the business. Any organization that seeks to differentiate itself and find new growth opportunities can benefit from adopting this strategy.
• What are some successful examples of companies that have applied the Blue Ocean Strategy?
• Cirque du Soleil: By combining elements of theater and circus while additionally eliminating the traditional circus features, Cirque du Soleil created a new and unique form of entertainment.
• Nintendo Wii: Nintendo redefined the gaming industry by focusing on accessibility and family-friendly gaming, attracting a broader audience compared to traditional gaming consoles.
• Yellow Tail Wine: This Australian wine brand challenged the wine industry norms by offering affordable and approachable wines with colorful branding, targeting a younger and less wine-savvy demographic. These examples demonstrate how various businesses across different sectors have successfully applied the Blue Ocean Strategy to create their own unique market spaces and achieve competitive advantage.

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Free Blue Ocean Strategy Presentation Templates

Present the new business opportunities with our easy-to-use free blue ocean strategy powerpoint templates and google slides themes. our clear and engaging slides help you explain this powerful strategy to investors, partners, and your team. use our visually appealing layouts, editable graphs, and creative infographics to deliver your business goals..

• Blue Ocean Vs Red Ocean Strategy: Present how to tell the difference between the two ideas and find ways to make markets where there is no competition.
• Difference Between Red Ocean And Blue Ocean Strategy: Helps to make the audience understand the big differences between these two ways of thinking and choose the right one for your business.
• Easy Layouts: Get your message across clearly and easily with layouts that are simple to follow.
• Graphs and Infographics You Can Change: Show off hard-to-understand data in a way that is interesting and easy to see.
• Multicolor Infographics like Triangles and Hexagons: Make your presentations even better with eye-catching infographics that will deliver your key points precisely.
• Single Slides: Use single slides to highlight specific ideas or concepts.
• Decks: Make complete presentations that cover the whole Blue Ocean Strategy framework.
• Free Slides: Get started with our blue ocean strategy PPT free downloads and upgrade to our premium templates for more advanced features.
• Grab your audience's attention: Keep your audience engaged with presentations that are nice to look at.
• Make complex ideas easy to understand: Break down complex concepts into simple terms that your audience will understand.
• Persuade and influence: Make a strong argument and get people to support your Blue Ocean Strategy.
• Entrepreneurs: Pitch your Blue Ocean Strategy to investors and get funding.
• Business Leaders: Present your Blue Ocean Strategy to your team and drive innovation.
• Consultants: Share your Blue Ocean Strategy knowledge with clients and help them succeed.
• A wider selection of slides: Choose from a bigger library of templates to fit your specific needs.
• Advanced editing options: Customize your slides with more advanced editing features.
• High-resolution graphics: Make your presentations look great on any device with high-resolution graphics.

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What is the blue ocean strategy.

Blue Ocean Strategy is a business approach that focuses on creating new market space instead of competing in existing markets, aiming to find uncontested market areas.

What are Blue Ocean Strategy Presentation Templates?

These templates are pre-designed slides that help convey the principles and concepts of Blue Ocean Strategy visually, making it easier to communicate ideas and strategies in presentations.

Where can we use the Blue Ocean Strategy Templates?

These templates can be used in various settings, such as business meetings, investor presentations, team discussions, or any situation where you want to communicate innovative business strategies effectively.

How can I make Blue Ocean Strategy Slides in a presentation?

To create these slides, you can use pre-designed templates and customize them with your content. Include key concepts like Blue Ocean vs. Red Ocean, strategy differentiators, and market innovation to convey your unique approach.Who can use these Blue Ocean Strategy Templates?

Who can use these Blue Ocean Strategy Templates?

Entrepreneurs, business leaders, consultants, or anyone looking to present and communicate innovative business strategies can use these templates to enhance their presentations.

Why do we need to use the Blue Ocean Strategy Slides?

Using these slides helps simplify complex business concepts, engage your audience visually, and effectively communicate your unique market approach, making it easier to gain support and understanding.

Where can I find Free Blue Ocean Strategy Presentation templates?

Free templates can be found on various online platforms and template websites. Look for resources that offer a range of slides to get started with your presentation at no cost. Slide Egg is one of the best platforms for finding these kind of free slides with good quality.

Blue Ocean Strategy PowerPoint Template

Blue Ocean Strategy PowerPoint Template is a professional and modern presentation for describing or explaining the Blue Ocean Strategy Theory. This Blue Ocean template for PowerPoint & Google Slides provides iconography and diagrams to work with the Blue Ocean Strategy Tools. Each Tool has a Slide for the description and application within the Strategy Analysis.

The born of Blue Ocean Strategy Model appeared with the publishing of the book of the same name, written by W. Chan Kim and Renée Mauborgne in 2005. The core idea of the Blue Ocean Strategy is to make the competition irrelevant and create new market space to exploit. The traditional competitive Markets are a hostile environment, where the metaphor of blood in the water (Read Ocean) represents them. Competitors fight to increase their market share with traditional competitive strategies and techniques like differentiation and low cost. On the other hand, the new markets where competition still does not exist (Blue Oceans) are where the company strategy needs to focus, where the market is fruitful. The first arrival fulfills customers’ demands. The exciting side of the story is that Blue Oceans (or fruitful markets) need to be discovered and generally require a disruption to appear.

The Blue Ocean Strategy Theory describes a set of Business Strategy tools that allows Companies to explore, create and exploit Blue Oceans and generate barriers to maintain them afterward. The Blue Ocean Strategy PowerPoint Template provides one slide per Tool, allowing the presenter to describe its analysis with a predefined shape that can be completed with the specific analysis information. This Template is ideal for presenting Blue Ocean Strategy analysis and conclusion, specific tools application, or just a business strategy lecture.

Each slide is crafted to not only represent the concepts visually but also to support presenters in explaining and applying these tools effectively.

• Value Innovation Slide: This slide helps emphasize the concept of simultaneous pursuit of differentiation and low cost, which is at the heart of Blue Ocean Strategy. It’s an excellent tool to represent your organization’s unique value proposition.
• Six Paths Framework Slide: It provides a practical approach to break away from competition and create a blue ocean by restructuring market boundaries.
• Strategy Canvas Slide: It’s perfect for visually capturing the current strategic position of your company versus your competitors and guiding you towards creating a leap in value for your customers.
• 4 Actions Framework Slide: This slide helps in questioning the strategic logic and business model of your industry to create a new value curve.
• Sequence of BOS Slide: It allows you to illustrate the right strategic sequence and check the commercial viability of your blue ocean idea.
• Tipping Point Leadership Slide: Here you can outline how to overcome key organizational hurdles and mobilize the change, helping your organization tip towards the new strategy.
• ERRC Grid Model Slide: The ERRC slide template helps in defining what factors need to be eliminated, reduced, raised, and created in your industry to achieve a leap in value.
• PMS Map Slide: This Profit and Market Structure Map presentation slide enables you to visualize the market prospects and profit potential of your Blue Ocean Strategy.
• Buyer Utility Map Slide: You can use this presentation slide to identify key utility levers and blocks in the buyer’s journey, ultimately leading to a blue ocean of uncontested market space.
• 3 Tiers of Noncustomers Slide: This slide is useful to present the concept of converting noncustomers into customers, thereby unlocking a new demand.
• 4 Hurdles to Execution Slide: This helps you address the key organizational hurdles when executing a Blue Ocean Strategy, including cognitive, resource, motivational, and political hurdles.
• Fair Process Slide: It enables you to illustrate how fair process management can influence employees’ attitudes and behaviors, thereby building execution into strategy.

The holistic set of blue ocean presentation slides in this PowerPoint template enables you to fully explore, create, and exploit Blue Oceans, building a compelling narrative around your company’s strategy. The Blue Ocean template objects and figures are 100% Editable, created with PowerPoint Shapes, allowing the user to fully customize each property (as size, color, position, gradient, and effects)

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Blue Ocean Strategy

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Your competition is fierce and you can't outspend or outperform them at what they already do best. So how do you stand out? Create uncontested market space and make your competition irrelevant with Blue Ocean Strategy . Blue Ocean Strategy helps build a product that's innovative, profitable, and untouchable by your competition.

Questions and answers

Can you name a company that could benefit from the Blue Ocean Strategy and explain how?

A company that could benefit from the Blue Ocean Strategy is a traditional taxi service company. With the rise of ride-sharing apps like Uber and Lyft, traditional taxi services have been facing fierce competition. By applying the Blue Ocean Strategy, they could identify and create uncontested market spaces that are ripe for growth. For example, they could focus on providing services to elderly or disabled individuals who require more assistance than what is typically provided by ride-sharing apps. This could include features like trained drivers, assistance with getting in and out of the vehicle, and easy-to-use booking services for those who are not tech-savvy.

What case studies demonstrate the effectiveness of the Blue Ocean Strategy?

Several case studies demonstrate the effectiveness of the Blue Ocean Strategy. For instance, Cirque du Soleil successfully applied this strategy by creating a unique blend of theater, dance, and circus, thus eliminating competition from traditional circuses and theater productions. Another example is Nintendo's Wii, which expanded the gaming market beyond traditional gamers to include families and older adults by focusing on fun, interactive games rather than high-end graphics and complex gameplay. These companies created a new, uncontested market space, making their competition irrelevant.

Slide highlights

Learn the Blue Ocean Shift Process to start from where you are now, imagine where you could be, discover how to get there, and make your move. (Slide 6)

Use a Buyer Utility Map to plot how your Blue Ocean offering stacks up against the current focus of your industry. (Slide 9)

Move your organization's mindset beyond value limitations and towards value innovation for your customers. (Slide 16)

Before there was Ford, there was no market for automobiles – because the competition was horses. Before Apple created iTunes, no one bought individual mp3 tracks over CDs. Before Uber, no one clicked a button to have a stranger pick them up.

While "disruption" has become a buzzword, the concept of value innovation is the secret ingredient used by legendary favorites across different industries. Competing in a crowded and over-saturated Red Ocean only maintains your status quo, and is probably costly and futile. Instead, dive into a Blue Ocean to create your own market space, with products that align innovation, price, utility, and cost.

A company that could benefit from the Blue Ocean Strategy is a traditional taxi service. Currently, they are competing in a saturated market (Red Ocean) with other taxi services and ride-sharing apps like Uber and Lyft. By applying the Blue Ocean Strategy, they could identify and create new demand in untapped markets. For instance, they could develop a unique service for elderly or disabled individuals who require special transportation assistance. This could include features like trained drivers, equipped vehicles, and personalized care. This would not only cater to a market that is currently underserved but also reduce competition.

Can you provide a case study that demonstrates the effectiveness of the Blue Ocean Strategy?

Yes, a classic example of the Blue Ocean Strategy is the launch of the Nintendo Wii. Instead of competing directly with powerful competitors like Sony and Microsoft in the Red Ocean of high-spec gaming, Nintendo created a Blue Ocean by targeting a new market segment: casual and family gamers. They introduced a unique, motion-sensitive controller and games that were easy to understand and play, making gaming accessible to a wider audience. This strategy allowed Nintendo to capture a new market, making the competition irrelevant.

Application

Introduction.

Blue Ocean Strategy was conceptualized based on studies of company success and failure in more than 30 industries over 10 years. The study revealed companies that go after markets with high profit potential and less competition are the most successful. Blue Ocean Strategy is the framework to pursue both differentiation and low cost to open a new market with new demands. (Slide 2)

How can the Blue Ocean Strategy be aligned with a company's digital transformation initiatives?

The Blue Ocean Strategy can be aligned with a company's digital transformation initiatives by identifying and creating new, uncontested market spaces that make the competition irrelevant. This can be achieved through the use of digital technologies to innovate and differentiate the company's offerings, while also reducing costs. For example, a company could leverage data analytics to gain insights into customer needs and preferences, and then use these insights to develop unique products or services. Additionally, digital technologies can be used to streamline operations and improve efficiency, thereby reducing costs. Ultimately, the goal is to create a 'blue ocean' of new market space where the company is the sole player, rather than competing in a 'red ocean' where competition is fierce.

What are the key components of the Blue Ocean Strategy that contribute to its success?

The key components of the Blue Ocean Strategy that contribute to its success are its focus on differentiation and low cost. This strategy encourages companies to create new markets with high profit potential and less competition, rather than competing in existing markets. It's about creating and capturing new demand, and making the competition irrelevant. The strategy was conceptualized based on studies of company success and failure in more than 30 industries over 10 years.

Six principles

There are six principles of Blue Ocean Strategy, each with key tools and objectives. Each principle comes with its own set of risks. For instance, Blue Ocean Strategy operates under the belief that boundaries and industry structures can be reconstructed based on the actions of the players involved. So under this first principle, reconstruct market boundaries, your company could face a "search risk". The "search risk" comes from the need to educate your customer base about the new market that's been created. (Slide 4)

Value innovation

The concept of value innovation is crucial to Blue Ocean Strategy. For traditional companies, their key value proposition meets at the intersection of price and product or feature value. For value innovation to occur, however, you need to focus on the big picture, not the numbers. Discover which factors your industry has long competed on that should be eliminated, and explore which factors should be created that the industry has yet offered. (Slide 5)

Strategic sequence

Get the strategic sequence right to create a commercially viable blue ocean idea. Sequence your priorities first by utility, next to price, to cost, and finally adoption. To do this, ask yourself if there is exceptional buyer utility in your business idea? If not, rethink your strategy. If so, what about your price – is it easily accessible to the mass of buyers? If not, rethink. And so forth. This process adds value to your business by reducing costs and increasing profits after widescale adoption. (Slide 7)

Strategy canvas

Reach beyond existing demand to determine which factors should be raised above the current industry standard, as these factors limit the size of your industry. The strategy canvas visualizes the different products or features you could create. Rank your industry's current standards against a potential Blue Ocean offering from low to high. The areas where your new offering can out-compete the current standard are the competitive factors to focus on. For instance, perhaps you are creating a new software platform for a niche industry with very low cybersecurity standards. Instead of trying to outcompete your industry on price or functionality, provide a more secure offering that could appeal to privacy-conscious customers across multiple industries. When done right, you can uncover the ocean of non-customers to unlock. (Slide 10)

What are the key features to focus on when developing a product using the Blue Ocean Strategy?

When developing a product using the Blue Ocean Strategy, the key features to focus on include: 1. Value Innovation: This is the cornerstone of the Blue Ocean Strategy. It involves creating innovative value to make the competition irrelevant. 2. Utility: The product should serve a useful purpose or meet a need in a new or unique way. 3. Price: The product should be priced in a way that it attracts a large number of customers, thereby creating a new market. 4. Cost: The cost of production should be kept low without compromising on the quality or features of the product. 5. Ease of use: The product should be user-friendly and easy to use. 6. Overhead costs: Overhead costs should be minimized to maximize profit.

How does the Blue Ocean Strategy help in capturing new markets and making competition irrelevant?

The Blue Ocean Strategy helps in capturing new markets and making competition irrelevant by encouraging businesses to innovate and create new market spaces rather than competing in existing ones. This strategy involves developing unique products or services that are not available in the current market, thereby creating a 'blue ocean' of uncontested market space. This reduces competition as the business is no longer competing on the same factors as others. It also allows the business to set its own pricing and quality standards, which can lead to higher profits and growth.

An alternate visualization allows you to canvas features as opposed to competing factors. List the products you want to develop and compare them across the main features you are focusing on. For instance, compare how the three products you envision track across key features like price, utility, ease of use, and overhead costs. Maybe your cyber-security cloud platform is more costly to develop, but its ease of use and utility score far higher than the competition, making it much more appealing to a wide variety of players outside your niche industry. (Slide 11)

Mindset and implementation

Define your organization's current mindset alongside the barriers that keep your potential customer base from adopting your product to overcome organizational hurdles. A key tenant of Blue Ocean is looking for customers that could be reached beyond what exists today. For instance, Tier 1 could be non-customers who are on the edge of your market due to the high costs of securing their businesses against cyber threats. Tier 2 could be "refusing" non-customers who consciously choose against doing business online, but could benefit from your easy-to-use software. Tier 3 could be the unexplored non-customers who work in other industries but could benefit from a secure cloud service that helps keep their data safe. And now, you have a whole new ocean outside of your current industry to explore. (Slide 15)

Lastly, use all of the findings from this process to build your execution strategy into a roadmap. For more on that front, check out our Strategic Roadmap deck on how to deploy a plan into success.

Blue Ocean Strategy

Oct 23, 2014

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Blue Ocean Strategy. W. Chan Kim and Renee Maubourgne Edited by Chitchai P. Agenda. Blue Ocean Strategy (BOS) Creating Blue Ocean Analytical Tools and Frameworks Formulating Blue Ocean Strategy Reconstruct Market Boundaries Focus on Big Picture Reach Beyond Existing Demand

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Presentation Transcript

Blue Ocean Strategy W. Chan Kim and Renee Maubourgne Edited by Chitchai P.

Agenda • Blue Ocean Strategy (BOS) • Creating Blue Ocean • Analytical Tools and Frameworks • Formulating Blue Ocean Strategy • Reconstruct Market Boundaries • Focus on Big Picture • Reach Beyond Existing Demand • Get Strategic Sequence Right • Executing Blue Ocean Strategy • Overcome Key Organization Hurdles • Build Execution into Strategy • Conclusion

Agenda Blue Ocean Strategy (BOS) • Blue Ocean Strategy (BOS) • Creating Blue Ocean • Analytical Tools and Frameworks • Formulating Blue Ocean Strategy • Reconstruct Market Boundaries • Focus on Big Picture • Reach Beyond Existing Demand • Get Strategic Sequence Right • Executing Blue Ocean Strategy • Overcome Key Organization Hurdles • Build Execution into Strategy • Conclusion

Creating Blue Ocean • New Market Space • The Continuing Creation of Blue Oceans • The Impact and Imperative of Crating Blue Oceans • From Company and Industry to Strategic Move • Value Innovation: The Cornerstone of BOS • The Six Principles of BOS

Value Innovation:The Cornerstone of BOS Costs Value Innovation Buyer Value The Simultaneous Pursuit of Differentiation and Low Cost

Red Ocean vs. Blue Ocean Strategy 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 untapped demand Make the value-cost trade-off Break the value-cost trade-off Align the whole system of a firm’s activities with its strategic choices of differentiation or low cost Align the whole system of a firm’s activities in pursuit of differentiation and low cost Focuses on adapting to external trends as they occur Participates in shaping external trends over time

The Six Principles of BOS • Formulating Principles • Reconstruct market boundaries • Focus on the big picture, not the numbers • Reach beyond existing demand • Get the strategic sequence right • Risk Factor Each Principle Attenuates • Search risk • Planning risk • Scale risk • Business model risk • Execution Principles • Overcome key organization hurdles • Build execution into strategy • Risk Factor Each Principle Attenuates • Organization risk • Management risk

Analytical Tools and Frameworks • Strategy Canvas • Four Actions Framework • Eliminate-Reduce-Raise-Create Grid • Three Characteristics of a Good Strategy

Strategy CanvasUS Wine Industry in the late 1990s High Premium Wines Budget Wines Low Above-the-line marketing Vineyard prestige Wine range Price Use of enological terminology and distinctions in wine communication Aging quality Wine complexity

Four Actions Framework REDUCE Which factors should be reduced well below the industry’s standards? A New Value Curve CREATE Which factors should be created that the industry has never offered? ELIMINATE Which of the factors that the industry take for granted should be eliminated? RAISE Which factors should be raised well above the industry’s standard?

Eliminate-Reduce-Raise-Create Grid Case Study: Yellow Tail Eliminate Enological Terminology Aging qualities Above-the-line Marketing Raise Price versus budget wines Retail stores involvement Reduce Wine complexity Wine range Vineyard prestige Create Easy drinking Ease of selection Fun and adventure

A New Value Curve –Strategy Canvas of Yellow Tail High Premium Wines [yellow tail] CREATE Budget Wines RAISE REDUCE ELIMINATE Low Above-the-line marketing Vineyard prestige Wine range Ease of selection Price Fun and adventure Use of enological terminology and distinctions in wine communication Aging quality Wine complexity Easy drinking

Strategy Canvas: Southwest Airlines High Southwest Airlines Average Airlines Car Transport Low Seating class choice Hub connectivity Friendly Service Speed Frequent Pint-to-point departure Price Meals Lounges

Strategy Canvas: Cirque du Soleil High Ringling Bros. & Barnum & Bailey Cirque du Soliel Smaller Regional Circuses Low Multiple show arena Thrill and challenge Theme Multiple Production Price Animal shows Artistic music and dance Refined watching environment Star performers Fun and humor Unique venue Aisle concessions

Three Characteristics of a Good Strategy • Focus • Divergence • Compelling Tagline

Agenda • Blue Ocean Strategy (BOS) • Creating Blue Ocean • Analytical Tools and Frameworks • Formulating Blue Ocean Strategy • Reconstruct Market Boundaries • Focus on Big Picture • Reach Beyond Existing Demand • Get Strategic Sequence Right • Executing Blue Ocean Strategy • Overcome Key Organization Hurdles • Build Execution into Strategy • Conclusion • Formulating Blue Ocean Strategy

Reconstruct Market Boundaries • Path 1: Look Across Alternative Industries • Path 2: Look Across Strategic Groups within Industries • Path 3: Look Across Chain of Buyers • Path 4: Look Across Complementary Products and Service Offerings • Path 5: Look Across Functional or Emotional Appeal to Buyers • Path 6: Look Across Time

Strategy Canvas: NetJetsPath1: Alternative Industry High Private Jet Corporate travel NetJet’s Value Curve Commercial Airlines First and Business-Classes travel Low Price (fixed purchase + variable price per flight) Speed of total travel time Ease of travel (include. Check-in, customs, etc. Flexibility and reliability In-flight service Deadhead costs Need for customer to manage aircraft (Aircraft M&A)

Strategy Canvas: QuickFitPath2: Strategic Group High Curves Home Exercise Program Traditional health clubs Low Availability of instructors Nonthreatening same-sex Environ- ment Womanly fun atmos-phere Price Workout equipment (treadmill, weights, etc) Workout time Environment encouraging discipline and motivation in exercise Convenience Amenities

Strategy Canvas: NABIPath4: Scope of Product/Service Offerings High NABI Hungarian Municipal Bus Company Average US Transit Bus Low Initial purchase price Fuel consumption Environmental friendliness Aesthetic design Customer friendliness Maintenance cost Corrosion Life-Cycle Cost

Strategy Canvas: QB HousePath5: Functional/Emotional Orientation High QB House Average Japanese Barbershop Low Range of hair treatments Hygiene Time savings on waiting Time savings on haircut High performance”air wash” system Extra services (other than haircutting) Price Reservation desk

Blue Ocean Creation Looks across alternative industries Looks across strategic groups within industry Redefines the industry buyer group Looks across to complementary product and service offerings Rethinks the functional-emotional orientation of to industry Participates in shaping external trends over time Summary:Conceiving New Market Space Head-to-Head Competition Industry Focuses on rivals within its industry Strategic Group Focuses on competitive position within strategic group Buyer Group Focuses on better serving the buyer group Scope of Product or Service Offering Focuses on maximizing the value of product and service offering within the bounds of its industry Functional Emotional Orientation Focuses on improving price performance within the functional-emotional orientation of its industry Time Focuses on adapting to external trends as they occur

Focus on Big Picture • Four Steps of Visualizing Strategy • The Pioneer-Migrator-Settler Map

Four Steps of Visualizing Strategy Visual Awakening Visual Exploration Visual Strategy Fair Visual Communication • Compare your business with your competitor’s by drawing your “as is” strategy canvas. • See where your strategy needs to change. • Go into 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, Raise, Create, or Change. • Draw your ‘to be” strategy canvas based on insights from field observations. • Get feedback on alternative strategy canvases from customers, competitor's customer, and non-customers. • Use feedback to build the best “to be” future strategy. • 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 gaps to actualize the new strategy.

The PMS Map Pioneers Migrators Settlers Today Tomorrow

First Tier: “Soon-to-be” non-customers who are on 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. Your Market Reach Beyond Existing Demand Third Tier Second Tier First Tier

Get the Strategic Sequence Right Buyer Utility Price Cost Adoption Commercially Viable Blue Ocean Idea Is there exceptional buyer utility in your business idea? Is your price easily accessible to the mass of buyers? Can you attain your cost target to profit at your strategic price? What are adoption hurdles in actualizing your business idea? Are you addressing them up front? NO NO NO NO

Buyer Utility Map The Six Stages of the Buyer Experience Cycle How long to find the product you need? How long to get the product delivered? Need other products to make it work? Require external ME Training or expertise assistance required? Create waist items? How rapidly can you make a purchase? How difficult to unpack and install the new product? How easy to maintain and upgrade? Easy to store when not in used? How much time do they take? How easy to dispose? Is the place of purchase attractive and accessible? How effective are features and functions? How easy are they to obtain? Do buyers have to arrange delivery themselves? If yes, how costly and difficult is this If so, how costly are they? The Six Utility Levels How secure is the transaction environment? Overcharged with bell and whistles? How costly? How costly? How much pain do they cause? Legal or environmental issue of the product disposal?

Upper-level pricing Mid-level pricing Low-level pricing Price Corridor of the Mass Identify the Price Corridor of the mass Specify a Price Level within the Price Corridor Three alternative product/service types: High degree of legal and resource protection Difficult to Imitate Price Corridor of the Mass Some degree of legal and resource protection Low degree of legal protection Easy to Imitate

Profit Model of BOS The Strategic Price The Target Profit The Target Cost Streamlining and Cost Innovative Partnering Pricing Innovation

Adoption • Employees • Partners • General Public

Agenda • Blue Ocean Strategy (BOS) • Creating Blue Ocean • Analytical Tools and Frameworks • Formulating Blue Ocean Strategy • Reconstruct Market Boundaries • Focus on Big Picture • Reach Beyond Existing Demand • Get Strategic Sequence Right • Executing Blue Ocean Strategy • Overcome Key Organization Hurdles • Build Execution into Strategy • Conclusion • Executing Blue Ocean Strategy

Overcome Key Organization Hurdles • Cognitive – Wedded to status quo • Political – Opposition from powerful vested interest • Motivational – Unmotivated • Resource – Limited resource

Build Execution into Strategy Strategy Formulation Process Fair Process Engagement Explanation Expectation clarity Trust &Commitment “I feel my opinion counts.” Attitude Volunteer Cooperation “I’ll go beyond the call of duty.” Behavior Exceeds Expectation Self-Initiated Strategy Execution

ConclusionSustainability and Renewal of Blue Ocean Strategy Imitation Barriers to BOS • Value Innovation does not make sense to a company’s conventional logic. • Blue Ocean Strategy may conflict with companies’ brand image. • Natural monopoly: The market often cannot support a second player. • Patents or legal permits block imitation. • High volume leads to rapid cost advantage for the value innovator, discouraging followers from entering the market. • Network Externalities discourage imitation. • Imitation often require significant political, operational, and cultural changes. • Companies that value-innovate earn brand buzz and a loyal customer following that tends to shun imitators.

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