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Blue Ocean Strategy

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BLUE OCEAN STRATEGY By W. Chan Kim & Renée Mauborgne From Harvard Business Review October 2004
Author and Article Information ,[object Object],[object Object],[object Object]
BLUE OCEAN STRATEGY ,[object Object]
Cirque du Soleil ,[object Object],[object Object],[object Object]
Circus Industry Negatives ,[object Object],[object Object],[object Object],[object Object],[object Object]
CdS’ Blue Ocean Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object]
BLUE OCEAN vs. RED OCEAN ,[object Object],[object Object],[object Object]
What’s it like in a Red Ocean? ,[object Object],[object Object],[object Object],[object Object],[object Object]
What is the BLUE OCEAN? ,[object Object],[object Object],[object Object],[object Object],[object Object]
2 ways to create Blue Oceans ,[object Object],[object Object]
Authors’ studies on Blue Oceans ,[object Object],[object Object],[object Object],[object Object]
Insights on Blue Ocean Strategy ,[object Object],[object Object],[object Object]
Once upon a time … ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
AUTOMOBILE Unattractive Value (mostly existing technologies) Incumbent Chrysler minivan Unattractive Value (some new technologies) Incumbent Japanese fuel-efficient cars Attractive Value (some new technologies) Incumbent GM’s “car for every purse and purpose” Unattractive Value (mostly existing technologies) New Entrant Ford Model T At time of creation, industry attractive or unattractive? Driven by technology or value pioneering? Blue Ocean created by a new entrant or incumbent? Key Blue Ocean Creations
COMPUTERS Unattractive Value (mostly existing technologies) New Entrant Dell built-to-order computers Nonexistent Value (mostly existing technologies) Incumbent Compaq PC Servers Unattractive Value (mostly existing technologies) New Entrant Apple personal Computer Unattractive Value (some new technologies) Incumbent CTR tabulating machine (CTR is now IBM) At time of creation, industry attractive or unattractive? Driven by technology or value pioneering? Blue Ocean created by a new entrant or incumbent? Key Blue Ocean Creations
MOVIE THEATERS Unattractive Value (mostly existing technologies) Incumbent AMC megaplex Unattractive Value (mostly existing technologies) Incumbent AMC multiplex Attractive Value (mostly existing technologies) Incumbent Palace Theaters Nonexistent Value (some new technologies) New Entrant Nickelodeon At time of creation, industry attractive or unattractive? Driven by technology or value pioneering? Blue Ocean created by a new entrant or incumbent? Key Blue Ocean Creations
The Paradox of Strategy ,[object Object],[object Object],[object Object],[object Object],[object Object]
Why the imbalance? ,[object Object],[object Object],[object Object],[object Object]
What focusing on the red ocean means ,[object Object],[object Object],[object Object],[object Object]
Competition Matters but … ,[object Object],[object Object],[object Object]
BLUE OCEAN FINDINGS ,[object Object],[object Object],[object Object],[object Object]
Blue Oceans are not about Technology Innovation ,[object Object],[object Object],[object Object],[object Object]
Incumbents often create Blue Oceans and usually within their core businesses ,[object Object],[object Object],[object Object],[object Object],[object Object]
Company and Industry are wrong units of analysis ,[object Object],[object Object],[object Object],[object Object],[object Object]
What then is the most appropriate unit of analysis? ,[object Object],[object Object],[object Object]
Red Ocean vs. Blue Ocean (a comparison of imperatives) ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Red Ocean vs. Blue Ocean (a comparison of woldviews) ,[object Object],[object Object],[object Object],[object Object]
The Simultaneous Pursuit of Differentiation and Low Cost ,[object Object],[object Object],[object Object],[object Object]

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Blue Ocean Strategy

  • 1. BLUE OCEAN STRATEGY By W. Chan Kim & Renée Mauborgne From Harvard Business Review October 2004
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  • 14. AUTOMOBILE Unattractive Value (mostly existing technologies) Incumbent Chrysler minivan Unattractive Value (some new technologies) Incumbent Japanese fuel-efficient cars Attractive Value (some new technologies) Incumbent GM’s “car for every purse and purpose” Unattractive Value (mostly existing technologies) New Entrant Ford Model T At time of creation, industry attractive or unattractive? Driven by technology or value pioneering? Blue Ocean created by a new entrant or incumbent? Key Blue Ocean Creations
  • 15. COMPUTERS Unattractive Value (mostly existing technologies) New Entrant Dell built-to-order computers Nonexistent Value (mostly existing technologies) Incumbent Compaq PC Servers Unattractive Value (mostly existing technologies) New Entrant Apple personal Computer Unattractive Value (some new technologies) Incumbent CTR tabulating machine (CTR is now IBM) At time of creation, industry attractive or unattractive? Driven by technology or value pioneering? Blue Ocean created by a new entrant or incumbent? Key Blue Ocean Creations
  • 16. MOVIE THEATERS Unattractive Value (mostly existing technologies) Incumbent AMC megaplex Unattractive Value (mostly existing technologies) Incumbent AMC multiplex Attractive Value (mostly existing technologies) Incumbent Palace Theaters Nonexistent Value (some new technologies) New Entrant Nickelodeon At time of creation, industry attractive or unattractive? Driven by technology or value pioneering? Blue Ocean created by a new entrant or incumbent? Key Blue Ocean Creations
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