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Marketing II Blue Ocean Strategy
Strategy
Brand
Communication
Strategy
Brand
Communication
Strategy
Brand
Communication
Strategy
Brand
Communication
Strategy
Brand
Communication
“Beware of the people who
are inventing something in their garage”
- Bill Gates
Steve saw the potential ...
Steve saw the potential ...
... but his colleagues
wanted to do it their way.
Sony only wanted to know only
one thing ...
Sony only wanted to know only
one thing ...
...how much does it cost to
produce?
? Who among you plays
video games?
Video games are mostly played by
guys ...
Video games are mostly played by
guys ...
...but things are changing.
console gaming
population 25 % females
online gaming
population 42 % females
Gaming population
Gaming population
Non-gaming population
? Who ever tried playing with the Nintendo Wii?
? Why do you like or dislike it?
The Wii Remote changed
the gaming experience
... and activated new segments
of gamers.
Harvard
Commodity matrix
Specialty Service
Low Cost Commodity
High price
Low price
High cost Low cost
Specialty Service
Low Cost Commodity
High price
Low price
High cost Low cost
Specialty Service
Low Cost Commodity
High price
Low price
High cost Low cost
Specialty Service
Low Cost Commodity
High price
Low price
High cost Low cost
Specialty Service
Low Cost Commodity
High price
Low price
High cost Low cost
Specialty Service
Low Cost Commodity
High price
Low price
High cost Low cost
Specialty Service
Low Cost Commodity
High price
Low price
High cost Low cost
Specialty Service
Low Cost Commodity
High price
Low price
High cost Low cost
Specialty Service
Low Cost Commodity
High price
Low price
High cost Low cost
1st price
2nd price
3rd price
1st price
2nd price
3rd price
1st price
2nd price
3rd price
Specialty Service
Low Cost Commodity
High price
Low price
High cost Low cost
? Where in this quadrant should your company
never be?
Specialty Service
Low Cost Commodity
High price
Low price
High cost Low cost
Specialty Service
Low Cost Commodity
High price
Low price
High cost Low cost
L
Specialty Service
Low Cost Commodity
High price
Low price
High cost Low cost L
LThe same place as your competitor
Identi!ng competitors
Analyzing competitors
Selecting competitors
VS. ?
? If you own a hotel, who are your
competitors?
VS.
VS.
VS.
They fight for the same
share of wallet.
Identi!ng competitors
Analyzing competitors
Selecting competitors
Competitor Analysis
Exam question
13
Competitor Strategies
Market leader
Market challenger
Market follower
Market Nicher
Market leader
Market challenger
Market follower
Market Nicher
? What do these brands have
in common?
thanks you for your purchase
The illusion of choice
The battle for shelf space.
Market leader
Market challenger
Market follower
Market Nicher
? What do the following two
men have, in common?
What is the price?
3,5 Euro
What is the cost?
0,07 Euro
0,07 Euro
Roger says
thanks
Roger says
thanks
Ow yea
He will always be famous for
the words:
Hasta Siempre la Revolucion
El Fidel
El Ché
Market leader
Market challenger
Market follower
Market Nicher
Market leader
Market challenger
Market follower
Market Nicher
Gaming mouses niche
Identi!ng competitors
Analyzing competitors
Selecting competitors
C S F
Critical Success Factor
S C A
Strategic Competitive Advantage
Speed = 4 hours
Speed = 4 hours CSF
Speed = 4 hours
Speed = 2 hours
Speed = 4 hours
Speed = 2 hours
SCA
Price Range Speed Local Advertising
Price Range Speed Local Brand
Price Range Speed Local Brand
4
3
2
1
0
Price Range Speed Local Brand
4
3
2
1
0
Price Range Speed Local Brand
4
3
2
1
0
SCA SCA
SCA
Price Range Speed Local Brand
4
3
2
1
0
SCA SCA
SCA
Price Range Speed Local Brand
SCD
4
3
2
1
0
Exam question
14
SCA SCA
SCA
Price Range Speed Local Brand
SCD
4
3
2
1
0
SCA SCA
SCA
Price Range Speed Local Brand
SCD
4
3
2
1
0
The Bloody Ocean
Blue Ocean Strategy
Reinventing Industries
? Who ever visited a traditional circus?
? Who ever visited a Cirque de Soleil?
Exam question
15
Value Curve
Price Animal shows
Multiple Show arenas
Thrills & danger
Star performers
Aisle concessions
Fun & Humor
Unique venue
HIGH
LOW
Price Animal shows
Multiple Show arenas
Thrills & danger
Star performers
Aisle concessions
Fun & Humor
Unique venue
HIGH
LOW
Price Animal shows
Multiple Show arenas
Thrills & danger
Star performers
Aisle concessions
Fun & Humor
Unique venue
Exam question
16
Cost leadership
Differentiation Focus
Buyer value
Costs
Buyer value
Costs
Buyer value
Value innovation
Costs
Buyer value
Value innovation
Costs
Buyer value
Value innovation
Exam question
17
A new value curve
A new value curve
Eliminate Which factors that the
industry takes for granted should be
eliminated?
A new value curve
Eliminate Which factors that the
industry takes for granted should be
eliminated?
Reduce Which factors
should be reduced well below the industry’s
standard?
A new value curve
Eliminate Which factors that the
industry takes for granted should be
eliminated?
Raise Which factors
should be raised well above the industry’s
standard?
Reduce Which factors
should be reduced well below the industry’s
standard?
A new value curve
Eliminate Which factors that the
industry takes for granted should be
eliminated?
Create Which factors should be
created that the industry has never
offered?
Raise Which factors
should be raised well above the industry’s
standard?
Reduce Which factors
should be reduced well below the industry’s
standard?
Eliminate • Star performers • Animal shows • Aisle concession sales • Multiple show arenas
Reduce • Fun and humor • Thrill and danger
Raise • Unique venue
Create • Theme • Refined
entertainment • Multiple productions • Artistic music /dance
HIGH
LOW
Animal shows
Multiple Show arenas
Thrills & danger
Theme Multiple Productions
Star performers
Aisle concessions
Fun & Humor
Unique venue
Re!ned environment
Artistic dance & music
Price
HIGH
LOW
Animal shows
Multiple Show arenas
Thrills & danger
Theme Multiple Productions
Star performers
Aisle concessions
Fun & Humor
Unique venue
Re!ned environment
Artistic dance & music
Price
HIGH
LOW
Animal shows
Multiple Show arenas
Thrills & danger
Theme Multiple Productions
Star performers
Aisle concessions
Fun & Humor
Unique venue
Re!ned environment
Artistic dance & music
Price
HIGH
LOW
Animal shows
Multiple Show arenas
Thrills & danger
Theme Multiple Productions
Star performers
Aisle concessions
Fun & Humor
Unique venue
Re!ned environment
Artistic dance & music
Price
HIGH
LOW
Animal shows
Multiple Show arenas
Thrills & danger
Theme Multiple Productions
Star performers
Aisle concessions
Fun & Humor
Unique venue
Re!ned environment
Artistic dance & music
Price
Price Above the line
Vineyard prestige
Wine range
Terminology Aging quality
Wine complexity
HIGH
LOW
HIGH
LOW
Price Above the line
Vineyard prestige
Wine range
Terminology Aging quality
Wine complexity
Understanding the labels of
wine bottles is difficult for a lot of consumers.
To some, drinking wine belongs to an elite segment of consumers.
Wine drinkers
Non-wine drinkers
Wine drinkers
Non-wine drinkers
Introducing wine to an segment of consumers drink different alcohol.
Price Above the line
Vineyard prestige
Wine range Ease of selection
Terminology Aging quality
Wine complexity
Easy drinking
Fun and adventure
HIGH
LOW
Blue Ocean Strategy
C. Kim
R. Mauborgne
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wonderful
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