Upload
mrmuaz
View
404
Download
0
Tags:
Embed Size (px)
DESCRIPTION
Citation preview
Blue Ocean Strategy
Prof Renee Mauborgne
© JOHN ABBOTT
Prof Chan Kim
© JOHN ABBOTT
The Book and the Authors
Creating New Market Space
To win in the future New Market Space, companies must stop competing with each other.
Because the only way to beat the competition is to stop trying to beat the competition.
Two Oceans
RED OCEAN
BLUE OCEAN
Two Oceans …
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 strategic firm's activities with its choice of differentiation or low cost.
Align the whole system of a firm's activities in pursuit of differentiation and low cost. VALUE INNOVATION
From Kim & Mauborgne, 2005
BOS Logic: The Core Principles
Reconstruct Market Boundaries… overcome believes.
Reach beyondexisting Demand… go for uncontested space.
Get the strategic sequence right… value [innovation] first.
VIVI
COST
VALUE
BOS Logic: Reconstruct market boundaries
IndustryFocuses on rivals within its industry
Strategic GroupFocuses on competitive position within strategic group
Buyer GroupFocuses on better serving the buyer group
Scope of Product and Service
Offerings
Focuses on maximizing the value of product and service offerings within the bounds of its industry
Functional-emotional Orientation of an
Industry
Focuses on improving price-performance with the functional-emotional orientation of this industry
Time/TrendsFocuses on adapting to external
trends as they occur
Looks across alternative industries
Looks across strategic groups within its industry
Redefines the buyer group of the industry
Looks across to complementary product and service offerings that go beyond the bounds of its industry
Rethinks the functional-emotional orientation of its industry
Participation in shaping external trends over time
Boundaries of Competition
Head-to-HeadCompetition
Creating New Market Space
BOS Logic: Reach beyond existing demand
Core Customer Noncostumer
Soon-to-be-NC Refusing Customer
BOS Logic: Get the Strategic Sequence right
Buyer utility
Is there exceptional buyer utility in your business idea?
Adoption
What are the adoption hurdles in actualizing your business idea?
Are you addressing them up front?
Price
Is your price easily accessible to the mass of buyers?
Cost
Can you attain your cost target to profit at your strategic price?
A commercially viable Blue Ocean Strategy
YES
YES
YES
YES
No Rethink
No Rethink
No Rethink
No Rethink
Which Strategy?
Compete in existing market space
Beat the competition
Exploit existing demand
Make the value/cost trade-off
Align the whole system of an organization’s activities with its
strategic choice of differentiation OR low cost
SUSTAINING (RED)
DISRUPTIVE (BLUE)VS.
Create uncontested market space
Make the competition irrelevant
Create and capture new demand
Break the value/cost trade-off
Align the whole system of an organization’s activities in pursuit of differentiation AND low cost.
From Kim & Mauborgne, 2005
What factors should be
eliminated that the industry has taken
for granted?
Eliminate
What factors should be reduced
well below the industry standard?
Reduce
What factors should be created that the industry has never
offered?
Create
What factors should be raised well beyond the
industry standard?
Raise
Four Actions to create a Blue Ocean From Kim & Mauborgne, 2005
FIRST STEP• Sit with your group members & establish your
company.• Reappoint your members to hold various
positions (please ensure each member has a different role from previous assignments).– CEO/MD– COO– CRO– CFO– CMO– CTO– CIO
• Fill in the company’s list form
Sailing The Blue Ocean The Task:
Using the materials provided and not more than 3 materials from your surroundings, use your creativity to design a creative product using the Blue Ocean Strategy.
Determine a price for your product.Display your products with a poster with a
product name, description, features, promotion tag line and the selling price.
Market & sell your product to the BUYER/Class.Record your performance/Customers Reaction.
BLUE OCEAN PARTS MATERIALS
NO GIVEN PARTS QUANTITY
1 STRAWS 10 PIECES
2 STRING 1 STRAND
3 PAPER 4 PIECES
4 UNKNOWN OBJECT 1 PIECE
NO FOUND PARTS QUANTITY
1
2
3
4
5
COMPANY NAME: DATE:
Company’s List
NO. POSITION NAME NICKNAME SIGNATURE
1.
2.
3.
4.
5.
6.
7.
CEO
CFO
COO
CMO
CTO
CRO
CIO
COMPANY NAME: DATE:
BLUE OCEAN PRODUCT
PRODUCT NAME
PRODUCT DESCRIPTION
PRODUCT FEATURE
PRODUCT MARKET
PROMOTION TAG LINE
PRODUCT PRICE
SELLING PRICE
PROFIT
COMPANY NAME: DATE: