What is Blue Ocean Strategy? :
What is Blue Ocean Strategy? *BOS is the result of a decade-long study of 150 strategic moves spanning more than 30 industries over 100 years (1880-2000). *BOS is the simultaneous pursuit of differentiation and low cost. *The aim of BOS is not to out-perform the competition in the existing industry, but to create new market space or a blue ocean, thereby making the competition irrelevant. *BOS frameworks and tools include: strategy canvas, four actions framework, six paths, buyer experience cycle, and blue ocean idea index. *These frameworks and tools are designed to be visual in order to not only effectively build the collective wisdom of the company but also allow for effective strategy execution through easy communication. *BOS covers both strategy formulation and strategy execution. *The three key conceptual building blocks of BOS are: value innovation, tipping point leadership, and fair process. *While competitive strategy is a structura list theory of strategy where structure shapes strategy, BOS is a re constructionist theory of strategy where strategy shapes structure.
Blue Ocean Strategy Tools, Frameworks and Methodologies :
Blue Ocean Strategy Tools, Frameworks and Methodologies Value Innovation | Strategy Canvas | 4 Actions Framework | Eliminate-Reduce-Raise-Create Grid | Buyer Experience Cycle / Buyer Utitity Map | 3 Tiers of Noncustomers | Sequence of BOS | Fair Process | Tipping Point leadership | 4 Hurdles to Execution |
Slide 4:
Red Ocean Versus Blue Ocean Strategy Red Ocean Strategy Blue Ocean Strategy Compete in existing market space. Create uncontested market space. Beat the competition. Make the competition irrelevant. Exploit existing demand. Create and capture new demand. Make the value-cost trade-off. Break the value-cost trade-off. Align the whole system of a firm’s activities with its strategic choice of differentiation or low cost. Align the whole system of a firm’s activities in pursuit of differentiation and low cost.
How Blue is your Ocean? :
How Blue is your Ocean? # Is your company facing heightened competition from domestic and international rivals? # Do your sales representatives increasingly argue they need to offer deeper and deeper price discounts to make sales? # Are you finding you need to advertise more to get noticed in the marketplace, yet the impact of each advertising dollar spent is falling? # Is your company focused more on cost cutting, quality control, and brand management at the expense of growth, innovation, and brand creation? # Do you blame your slow growth on your market? # Do you see outsourcing to low cost companies or countries as a principal prerequisite to regain competitiveness? # Are mergers and acquisitions the principal means your company sees to grow? # Is it easier to get funding to match a strategic move made by your competitor than it is to get internal funding to support a strategic move that allows you to break away from the competition? # Is commoditization of offerings a frequent worry of your company? # List your key competitive factors; now list your competition’s. Are they largely the same? If you answered yes to a majority of these questions, then your company is stuck in the red ocean. Blue Ocean Strategy offers you a way to swim out of the red ocean filled with sharks. It presents a theory, tools, and frameworks to allow your company to break away from the competition and create a blue ocean of new market space.
Risk involving in Blue ocean strategy:
Risk involving in Blue ocean strategy blue oceans there are six key risks companies face: 1.search risk 2.planning risk 3.scope risk 4.business model risk 5.organizational risk 6.management risk. The first four risks revolve around strategy formulation, and the latter two around strategy execution.
Blue Ocean Strategic Moves:
Blue Ocean Strategic Moves