Learning Blue Ocean Strategy through visual exploration of concepts and hands-on activity for three days, with intense participation by management faculty at Raisoni Group of Institutions, Nagpur April 2016
How Software Developers Destroy Business Value.pptx
Fdp on blue ocean strategy raisoni nagpur curtain raiser
1. Essentials of crafting and
implementing
Blue Ocean Strategy
Faculty Development Programme for Management
Teachers
at Raisoni Institutions, Nagpur
28th & 29th April, 2016
Dr. A V Ramana Acharyulu,
XIME, Bangalore
5. Can we relate it to our today’s
program?
Yes?
No?
Why?
….
...
...
Lets come back to the discussions few slides later during
the hands-on activity...
6. Let’s look at current market scenarios
A day in our lives… as seen on the
newspaper
As viewed on TV
As browsed on intenet
8. How do we see the market place
today????
Competitively fought brands…
Offers and offers
New and improved models, enhanced versions, Upgrades
Price cuts; discounts; free gifts; buy 1 get 1 offers
Each tries to do More than its competitor…
Pushing aggressively….
to enhance sales..
Improve market share…and
Tempt all with new brand associations and brand endorsements...
9. Competitive space in industries
Bikes: Honda, Suzuki, Yamaha, Kawasaki, KTM, BMW, HD,
Dukati, BSA, Hero, Bajaj, TVS, Kinetic, Mahindra, SYM,
>>>>>>>
Cars: Maruti Suzuki, Hyundai, Tata, Toyota, Honda,
Volkswagon, Ford, Chevrolet, Mahindra, Renault, Porsche,
Audi, BMW, Jaguar,,,,,,,,,,, ……
And… in below areas, too crowded even to mention the
Brands...
FMCGs: tea, coffee, chocolates, biscuits, tooth-pastes, soaps,
deos, beauty creams, hair oils ,,,,,,,
White goods: fridges, washing machines, TVs, Acs, Heaters,
Tech gadgets: computers, laptops, tablets, mobile phones,
mp3 players, dvd players<<<<<
10. Intense competition leads to bloody wars…
red oceans
Aggressive approach to gain attention of
customers...
More and more promotional budgets to spend on
Less and less profitability – unit level; gross
margins; less and less market share
Marginalised and decreasing returns on increased
spends of each round of competition…
Its a bloody war out...
Which we call Red Oceans....
11. Blue Ocean: the concept
A research pursuit of two professors – W. Chan Kim and Renee
Mauborgne – over last forty years….
Seeking a way forward for challenges of competition
How to move away from price wars
How to resolve the choice between differentiation and cost
leadership
How to break the value-cost trade-off
How to reach to customers who are beyond the reach
The concept and a method…A paradigm shift in thinking,
analysing, acting and leading called Blue Ocean Strategy
OUR AGENDA…. TO ATTEMPT LEARNING THE ABOVE USING FEW
TOOLS...
32. We watched this clip…what is
this?
REDBULL – the energy drink… what competition did it
move away from?
33. Creating Blue Oceans – few examples
From the Barber’s knife to safety razor and freedom for a personal shaving
experience for both the genders – Gillette
Animal cruelty and multiple acrobatics syndrome to riveting entertainment
- Cirque Du Soleil
Highly restrictive access to knowledge via Encyclpedia Britannica… to the
most accessed web based encyclopedia – Wikipedia
A safe journey for a family at the cost of a scooter ride – Tata Magic
Breaking the exclusivity of elite brokers by opening trading to millions of
small traders across the country – NSE
Bringing detergents to the reach of washing needs of urban slums/ rural
hamlets – Nirma washing powder
Breaking away from the clutches of elite radiologists’ diagnostic services to
mobile and affordable medical diagnostics across the country – Medall Labs
34. What is driving the success of any of
these examples?
The philosophy of Blue Ocean
Offering a compelling set of:
Value proposition
The utility buyers obtain from an offering minus the price they pay
for it
People proposition
The motivation that people get to execute and deliver the value
though the organization
Profit proposition
The revenues the organization receives minus the cost to produce
and deliver the value
35. Any questions???
The next session onwards to deal with the core
elements of Blue Ocean Strategy….
37. References
• W. Chan Kim, Renée Mauborgne, Blue Ocean Strategy, 2005, Havard Business School Press
• Katrina Ling, Making a blue ocean strategy that discourages imitation, 2011, INSEAD
• Anandan Pillai, The Tug of war between BSE and NSE, 2009, IBS Case Publishing,
• Katharina Bost C, How to create uncontested market space, 2006, INSEAD
• Mark Johnson, The white space and business model innovation, 2010, HBP
• Mark Johnson, The white space within, 2010, Harvard Business Press
• Latha Ramakrishna, Leadership through innovation, TAPMI
• Chandrasekhar R, Suzlon Energy, 2009, Richard Ivy School of Business, HBP
• Marit Loewer, Blue OceanStrategy at Henkel, 2009, WHO-Otto Beishem School of Management, Dusseldorf,
Germany
• Bong Robert, The Case of Tata Nano, IBOSRC, (forthcoming)
• Ramana AV, Redefining Medical Diagnistics, (forthcoming)
