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Blue Ocean Strategy Can translators make
competition irrelevant? Marta Stelmaszak
Cracow Translation Days 7 September 2013
Agenda
• Introduction • Economics and theories • Red oceans and blue oceans • Creating a blue ocean • Formulating a blue ocean strategy • Strategy canvas • Summary and questions
Introduction
• About me • About this workshop
• Please take notes • Use the notepad in your conference pack • If an example comes to your mind, share it • Try to leave the room with action points
Economics and theories
• Why theories are not just theories? • Why theories and strategies are not just for big
companies? • What I took away?
• LSE: network economics, switching cost, disintermediation
• Oxford: law of demand and supply, Veblen goods, marginal cost, production cost
• Other: the Golden Circle, Why, ICA • LSE: innovation, disruption, project management, SMART
Red oceans and blue oceans (1)
• Book: “Blue ocean strategy. How to created uncontested market space and make competition irrelevant”, W. C. Kim, R. Mauborgne
• Preface: “This book is about friendship” • I’ll be using examples: Cirque du Soleil,
Apple, others…
Red oceans and blue oceans (2)
• Red ocean
Red oceans and blue oceans (3)
• Red ocean of translation - examples • Compete in existing market space • Beat the competition • Exploit existing demand • Make the value-cost trade-off • Differentiation or low cost
Red oceans and blue oceans (4)
• Blue ocean of translation • Create uncontested market space • Create and capture new demand • Break the value-cost trade-off • Value innovation
• Make the competition irrelevant
Red oceans and blue oceans (5)
• Blue ocean
Creating a blue ocean (1)
A new value curve
Eliminate
Reduce Raise
Create
Creating a blue ocean (2)
• Which of the factors that the industry takes for granted should be eliminated?
Creating a blue ocean (3)
• Which factors should be reduced well below the industry standard?
Creating a blue ocean (4)
• Which factors should be raised well above the industry standard?
Creating a blue ocean (5)
• Which factors should be created that the industry has never offered?
Creating a blue ocean (6)
• Eliminate Raise
• Reduce Create
Formulating a blue ocean strategy (1)
• Reconstructing market boundaries • Researching beyond existing demand • Focusing on the big picture
Formulating a blue ocean strategy (2)
• Reconstructing market boundaries • Path 1: Look across alternative industries • Path 2: Look across strategic groups within
industries • Path 3: Look across the chain of buyers: purchasers,
users, influencers • Path 4: Look across complementary product and
service offerings • Path 5: Look across functional or emotional appeal • Path 6: Look across time
Formulating a blue ocean strategy (2)
• Reconstructing market boundaries Head-to-head competition Blue ocean
Industry Focuses on rivals within the industry
Looks across alternative industries
Strategic group Focuses on competitive position within a group
Looks across strategic groups within industry
Buyer group Focuses on better serving the buyer group
Redefines the industry buyer group
Scope of service offering Focuses on maximising the value of service offerings
Looks across to complementary product and service offerings
Functional-emotional orientation
Focuses on improving price performance within the functional-emotional orientation
Rethinks the functional-emotional orientation
Time Focuses on adapting to external trends as they occur
Participates in shaping external trends over time
Formulating a blue ocean strategy (3)
• Researching beyond existing demand
Soon to be Refusing Unexplored
Formulating a blue ocean strategy (3)
• Researching beyond existing demand • Buyer experience cycle
Purchase Delivery Use Supplements Maintenance Disposal
Formulating a blue ocean strategy (3)
• Focus on the big picture, not numbers
Strategy canvas (1)
Strategy canvas (2)
Strategy canvas (3)
• Compare your business with your competitors’ by drawing your “as is” strategy canvas
• See where it can be changed
Summary • Compare your business with your
competitors’ by drawing your “as is” strategy canvas
• See where it can be changed • Go into the field to explore the six paths to
creating blue oceans • See which factors you should eliminate, create
or change • Draw your “to be” strategy canvas
