blue ocean strategyBy: 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 toblue ocean strategy

Industry

Strategic group

Buyer group

Scope of Product or service offering

Functional-emotional orientation of an industry

Time

From Competing Within

To Creating Across

The six conventional boundaries of competition

Strategy canvas of ( yellow tail)

0

2

4

6

8

10

12

14

5

6

3.54.5

0 0 0

Four actions framework

A new Value Curve

Reduce:Which factors should

be reduced well below the industry’s

standard

Create:which factors

should be created that the industry has never offered

Raise:Which factors should be raised well above

the industry’s standard

Eliminate:Which of factors that the industry takes for granted

should be eliminated?

Minimizing risks & maximizing opportunities in formulation & executing blue ocean creation

Reconstruct market boundaries

Focus on the big picture, not the numbersReach beyond existing demand

Get the strategic sequence right

Formation Principles Formulation Risks

Search Risk

Planning Risk

Scale Risk

Business model Risk

Execution RisksExecution Principles

Organization Risk

Management Risk

Overcome key organizational hurdlesBuild execution into strategy