The 7 Ocean Strategies

1. *
“Running an Agile Fortune 500 Company”
Aditya Yadav, aditya.yadav@gmail.com
in.linkedin.com/in/adityayadav76

2. * A Typical Global Company
* Fortune 500/1000
* 200 Divisions
* 40 Countries
* 25000 Employees
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3. *
@ Acme Inc.

4. * Original Question “Our business has more or
less stagnated. Should we be looking at a Blue
Ocean Strategy?”
* The Correct Question - “Blue Ocean is about
innovation and no amount of managing yourself
through it works than basically innovating.
That’s one reason nobody on the planet uses
the Blue Ocean Strategy framework. Nobody!.
We need to look at a more comprehensive
picture.”
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5. *
And The Philosophy Behind The Answer

6. * Red oceans represent all the industries in existence
today – the known market space. In the red oceans,
industry boundaries are defined and accepted, and
the competitive rules of the game are known. Here
companies try to outperform their rivals to grab a
greater share of product or service demand. As the
market space gets crowded, prospects for profits
and growth are reduced. Products become
commodities or niche, and cutthroat competition
turns the ocean bloody; hence, the term red
oceans.
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7. * Blue oceans, in contrast, denote all the
industries not in existence today – the unknown
market space, untainted by competition. In
blue oceans, demand is created rather than
fought over. There is ample opportunity for
growth that is both profitable and rapid. In
blue oceans, competition is irrelevant because
the rules of the game are waiting to be set.
Blue ocean is an analogy to describe the wider,
deeper potential of market space that is not
yet explored.
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Blue ocean strategy makes sense in a world where supply exceeds demand [Overcapacity]
The cornerstone of Blue Ocean Strategy is 'Value Innovation'. A blue ocean is created
when a company achieves value innovation that creates value simultaneously for both
the buyer and the company. The innovation (in product, service, or delivery) must
raise and create value for the market, while simultaneously reducing or eliminating
features or services that are less valued by the current or future market.
The authors criticize Michael Porter's idea that successful businesses are either lowcost providers or niche-players. Instead, they propose finding value that crosses
conventional market segmentation and offering value and lower cost.
A Red Ocean Strategy does not guarantee success
Competitive Strategy is the route to nowhere
Firms need to create "Sensational Strategies". Just like Blue Ocean Strategy, a
Sensational Strategy is about "playing a different game“
The aim of companies is to create temporary monopolies
The aim of companies is to create blue oceans, that will eventually turn red.
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9. *
For blue ocean strategy formulation:
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The Strategy Canvas
The initial litmus test for BOS: focus, divergence, compelling tagline
The Four Actions Framework
Eliminate-Reduce-Raise-Create Grid
The Six Paths Framework
Buyer Utility Map
Buyer Experience Cycle
Price Corridor of the Mass model
Four Steps of Visualizing Strategy Process
Pioneer-Migrator-Settler Map
Three Tiers of Noncustomers Framework
The Sequence of Blue Ocean Strategy
For blue ocean strategy execution:
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Tipping Point Leadership
Four Key Organizational Hurdles:
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Riding the "Electric Sewer" to break the Cognitive Hurdle
Redirecting from cold spots to hot spots and horse trading to overcome the Resource Hurdle
Placing Kingpins in a Fishbowl and atomize the change to jump over the Motivational Hurdle
Leverage your angels and consigliere to overcome the Political Hurdle
3 E principles of Fair Process: engagement, explanation, clarity of expectations
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10. 1.
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Red Ocean – (Everything that exists today)
Blue Ocean – (Create the Future)
Green Ocean – (Early exploiting someone else’s
Blue Ocean)
Gold Ocean – (Reinvent or Disrupt a Red Ocean)
Rainbow Ocean – (Integrate/Merge/Simplify
Multiple Industries or Oceans)
Orange Ocean – (Mirror Dimensional Ocean,
alternatives, clones, substitutes & complements)
Europa Ocean – (Innovate for dormant
possibilities of a future Blue Ocean)
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11. * Wonder why nobody bothers about the Legacy – Blue
Ocean Strategy?
* Because Blue Oceans are NOT about Strategy as
much as they are about Innovation
* And Blue Ocean creating Innovation is largely
Bottom Up compared to a Top Down Legacy Blue
Ocean Strategy
* You don’t need a Strategy Framework for creating a
Blue Ocean
* You need Learning, Change, Invention and Delivery
of Innovation…
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12. Aditya!!!
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