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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