PRESENTED BY :

TANUSHREE RAY, MINAKSHEE KUMARI, PRAYAG YADAV, SANTOSH SAH, & ROHIT KUMAR

S T R A T E G I C

M A N A G E M E N T

The Book and its Authors

ACCOLADES..
Over 2 million copies sold Translated into over 41 foreign languages a world record Taught as the major theory of strategy at leading business schools Gives insights to CEOs, Executives, Heads of State and Prime Ministers

Prof Chan Kim

Prof Renee Mauborgne

The Theme of the Book

How to create uncontested market space and make competition irrelevant..

Circue du Soleil
Creating Uncontested Market Space and Making the Competition Irrelevant

A RED OCEAN?

How is it Different from a Red Ocean?

Red Ocean Strategy
Compete in existing market space.

Blue Ocean Strategy

Create uncontested market space. Make the competition irrelevant Create and capture new demand Break the value-cost trade-off Align the whole system of a firms activities in pursuit of differentiation and low cost

Beat the competition.

Exploit existing demand. Make the value-cost trade off. Align the whole system of a firms activities with its strategic choice of differentiation or low cost.

Why opt for Blue Ocean?

Supply exceeds demand.
Globalization . Increasing price wars. Shrinking profit margins. Brands are becoming more similar.

Select based on price.

BOS Logic: The Core Principles

Reconstruct Market Boundaries overcome believes.
Reach beyond existing Demand go for uncontested space. Get the strategic sequence right value [innovation] first.

COST

VI VI
VALUE

BOS Logic: Reconstruct market boundaries

Boundaries of Competition
Industry

Head-to-Head Competition
Focuses on rivals within its industry Focuses on competitive position within strategic group Focuses on better serving the buyer group

Creating New Market Space

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

Strategic Group

Buyer Group

Focuses on maximizing the value Scope of Product and of product and service offerings Service Offerings within the bounds of its industry
Functional-emotional Orientation of an Industry Time/Trends Focuses on improving priceperformance with the functionalemotional orientation of this industry Focuses on adapting to external trends as they occur

Participation in shaping external trends over time

1. KBC Star Plus 2130-2200 5.6 2. KBC Star Plus 2100-2130 4.9 3. Kahaani Ghar Ghar Kii Star Plus 2200-2230 4.7 4. Kyunki Saas Bhi Kabhi Bahu Thi Star Plus 2230-2300 4.5 5. Kasautii Zindagii Kay Star Plus 2030-2100 3.7 6. Saat Phere Zee TV 2130-2200 2.9 7. Kasamh Se Zee TV 2100-2130 2.6 8. Kahiin To Hoga Star Plus 2300-2330 2.4 9. Ghar Ki Lakshmi Betiyann Zee TV 2200-2230 2.2 10. Banoo Mein Teri Dulhann Zee TV 2000-2030 2.1 11. Maayka Zee TV 2030-2100 1.9 12. Karam Apnaa Apnaa Star Plus 2000-2030 1.6 13. Kumkum Pyara Sa Bandhan Star Plus 1300-1330 1.6 14. Bhabhi Star Plus 1330-1400 1.5 15. Sinndoor Tere Naam Ka Zee TV 1930-2000 1.5 16. Woh Rahne Waali Mehlon Ki Sahara One 2100-2130 1.4 17. Mamta Zee TV 1900-1930 1.2 18. Kyunki Saas Bhi Kabhi Bahu Thi Star Plus 1500-1530 1.2 19. Jabb Love Hua Zee TV 2230-2300 1.1 20. Saarrthi Star Plus 1430-1500 1.1

BOS Logic: The Core Principles

Reconstruct Market Boundaries overcome believes.

Reach beyond existing Demand go for uncontested space.

Get the strategic sequence right value [innovation] first.

COST

VI VI
VALUE

BOS Logic: Reach beyond existing demand

Core Customer

Noncostumer

Soon-to-be-NC

Refusing Customer

Fords 1908 Model T

1970 The First Mouse

CNN 1980 Real-Time News 24/7

2002 Apples ipod

BOS Logic: The Core Principles

Reconstruct Market Boundaries overcome believes. Reach beyond existing Demand go for uncontested space.

COST

Get the strategic sequence right value [innovation] first.

VI VI
VALUE

BOS Logic: Get the Strategic Sequence right

Buyer utility
Is there exceptional buyer utility in your business idea?

No Rethink

YES
Price Is your price easily accessible to the mass of buyers?

YES
Cost Can you attain your cost target to profit at your strategic price?

No Rethink

No Rethink

YES
Adoption What are the adoption hurdles in actualizing your business idea? Are you addressing them up front?

No Rethink

YES

A commercially viable Blue Ocean Strategy

Buyer Utility Map

The buyer utility map helps managers look at this issue from the right perspective. It outlines all the levers companies can pull to deliver exceptional utility to buyers as well as the various experiences buyers can have with a product or service. The Six Stages of the Buyer Experience Cycle
1. Purchase 2. Delivery 3. Use 4. Supplements 5. Maintenance 6. Disposal

Customer Productivity

Simplicity

The Six Utility Levers

Convenience

Risk Fun and Image

Environmental friendliness

Buyer Experience Cycle

A buyers experience can usually be broken into a cycle of six stages, running more or less sequentially from purchase to disposal. Each stage encompasses a wide variety of specific experiences. At each stage, managers can ask a set of questions to gauge the quality of buyers experience.

Purchase How long does it take to find the product you need? Is the place of purchase attractive and accessible? How secure is the transaction environment? How rapidly can you make a purchase?

Delivery How long does it take to get the product delivered? How difficult is it to unpack and install the new product?

Use Does the product require training or expert assistance? Is the product easy to store when not in use? How effective are the products features and functions? Does the product or service deliver far more power or options than required by the average user? Is in overcharged with bells and whistles?

Supplements Do you need other products and services to make this product work? If so, how costly are they? How much time do they take? How easy are they to obtain?

Maintenance Does the product require external maintenance?

Disposal Does use of the product create waste items?

How easy is it to How easy is it to maintain and upgrade dispose of the the product? product? How costly is maintenance? Are there legal or environmental issues in disposing of the product safely? How costly is disposal?

Do buyers have to arrange delivery themselves? If yes, how costly and difficult is this?

The Six Principles of Blue Ocean Strategy

Path 1- Look across alternative industry
Path 2- Looking across strategic groups within industry Path 3- Look Across the Chain of Buyers

Path 4- Look Across Complementary Product and Service Offerings Path 5- Look Across Functional or Emotional Appeal to Buyers Path 6- Look Across Time

Four Actions to create a Blue Ocean Raise

What factors should be raised well beyond the industry standard?

Eliminate
What factors should be eliminated that the industry has taken for granted?

Create
What factors should be created that the industry has never offered?

Reduce
What factors should be reduced well below the industry standard?

19

ThankYou ??? Please..