Transcript Blue Ocean Strategy

Blue Ocean vs. Red Ocean Strategy
 Blue Ocean Strategy
 Create uncontested
market space
 Make the competition
 Red Ocean Strategy
 Compete in existing
market space
 Beat the competition
irrelevant
 Exploit existing
 Create and capture new
demand
demand.
Blue Ocean Strategy
Tools
 A diagnostic tool for building a
Strategy
Canvas
compelling blue ocean strategy.
 It captures the current “state-of-play” in the known
market space
 Allows you to understand:
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Where the competition is currently investing
The factors the industry currently competes on in product,
service, and delivery
What customers receive from existing competitive offerings in
the market
Four Action Framework
Eliminate
Raise
Reduce
Create
Four Action Framework
 Which of the factors that the
Eliminate
Reduce
Raise
Create
industry takes for granted should
be eliminated?
------------------------------------------- Which factors should be reduced
well below the industry standard?
------------------------------------------- Which factors should be raised
well above the industry standard?
------------------------------------------- Which factors should be created
that the industry has never offered?
Four Action Framework: The Case
of Cirque du Soleil
Eliminate
Reduce
 Star performers
 Fun and Humour
 Animal Shows
 Thrill and Danger
 Aisle concession sales
 Multiple Show Arenas
Four Action Framework: The Case
of Cirque du Soleil
Create
 Theme
 Refined environment
 Multiple Productions
 Artistic Music and Dance
Raise
 Unique Venue
Six Principles of Blue Ocean
Strategy
 Formulation Principles
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Reconstruct market boundaries
Focus on the big picture- not the numbers
Reach beyond existing demand
Get the strategic sequence right
 Execution Principles
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Overcome organizational hurdles
Build execution into strategy
Blue Ocean Activity
 In groups of two or three you are to head out into the
community and investigate three different players in a
certain market. ( i.e. Pizza Hut, Boston Pizza, and
Colonnade Pizza are all in the Pizza Restaurant market).
 Your job is to compare these three competitors in the
market and create a “Four Action Framework” to identify
potential areas for new business.
 You must have visited your three competitors by Friday as
we will work on these frameworks in class at that time. You
will also present your frameworks to the class on Friday.