Blue Ocean Strategy

Views:
 
Category: Education
     
 

Presentation Description

Blue Ocean Strategies It is always said by management gurus that don’t compare & compete with other companies. It is wiser to benchmark against yourself than to benchmark against your competition. On this very premise W Chan Kim & Renee Mauborgne differentiate Blue Oceans & Red Oceans in the book they call Blue Ocean Strategy. They have observed that there are no permanently excellent industries & companies. Their research made it apparent that there were smart strategic moves. These moves found their genesis in creating Blue Ocean strategies, which led to a strong profitable growth. We look at their study along with examples where such strategies were created

Comments

Presentation Transcript

Blue Ocean Strategy:

Blue Ocean Strategy visit www.kamyabology.com for best business ppts

Unexplored markets:

Unexplored markets It is always said by management gurus that don’t compare & compete with other companies. It is wiser to benchmark against yourself than to benchmark against your competition. On this very premise W Chan Kim & Renee Mauborgne differentiate Blue Oceans & Red Oceans in the book they call Blue Ocean Strategy. They have observed that there are no permanently excellent industries & companies. Their research made it apparent that there were smart strategic moves. These moves found their genesis in creating Blue Ocean strategies, which led to a strong profitable growth. We look at their study along with examples where such strategies were created. visit www.kamyabology.com for best business ppts

Intense competition turns the ocean red:

Intense competition turns the ocean red Red Oceans are the existing industries, where players are already there & it’s a known market. The boundaries of this market are defined & recognized by all. The rule of the game is competing against each other & the rules of the games are known by all. Here market players try to grab the existing demand. Many players enter the market to make it crowded. Obviously, with so many players competing the prospect of profit & growth reduces. There is cut throat competition, while the product becomes generic commodity & there is a blood bath and ocean turn red. visit www.kamyabology.com for best business ppts

Competition is irrelevant:

Competition is irrelevant Blue ocean is about unexplored markets, which don’t exist. It is a market where no one has ventured into, rather no one has noticed & created it. So obviously there is no competition here. Here demand is created & not fought amongst competitors. It is an untapped market & the company that explores it experiences rapid growth with profits. There is no competition in the Blue Ocean as the rules are still to be set. Like the Blue Ocean is wide & deep here the market potential is vast, deep & wide. visit www.kamyabology.com for best business ppts

Mahindra Reva:

Mahindra Reva Mahindra Reva is a pioneer in electric vehicals. The company is active in licensing out its electric vehicle technologies, it churns out integrated zero emission mobility solutions. The cars are environment friendly & the company saw this market, which no one had ventured into. Now it has launched new four seater called E2o. Mahindra is working on manufacturing an electric version of it’s Verito sedan keeping up with its Green policies. The company explored the Blue Ocean for electric cars in India. visit www.kamyabology.com for best business ppts

Shiva trilogy by Amish Tripathy:

Shiva trilogy by Amish Tripathy The central character of the book ‘The Immortals of Meluha’ & the series is Lord Shiva. Amish Tripathy has chosen a mythological background to write a fiction. He knows that there is a market for mythology in India, as our culture is deep rooted in religion & philosophy. He says that mythology is part of our DNA. He realized instead of retelling traditional mythological stories people were wanting a new interpretation. Young Indians want to connect with traditional Indian thought & Amish tapped this social trend among the youth. He explored yet another untapped market. visit www.kamyabology.com for best business ppts

Reduce, eliminate, create & raise:

Reduce, eliminate, create & raise A company creates value innovation in a region where its actions favorably affect its value proposition to buyers & cost structure. Cost savings are made by eliminating & reducing the factors an industry competes on. Buyer value is increased by creating & raising elements that the industry has never offered. Generally companies compete within industry boundaries. They don’t challenge the rules of the game. On each factor of the competition they give a lower offering by eliminating & reducing factors by sticking to bare essentials. This improves the market share in the short run. But, they eventually get trapped in intensified price war leading to commoditization of the industry. visit www.kamyabology.com for best business ppts

Fours step visualization process :

Fours step visualization process visit www.kamyabology.com for best business ppts

Visualization process:

Visualization process The book Blue Ocean Strategy presents four step strategy visualization process, which guides the company to break out from the red ocean. In the first step executives draw the present strategy viz a viz competition in a visual representation. This is called Visual Awakening. It is a wake up call for a company to change it’s present strategy. Next step is Visual Exploration. Managers venture into the field to explore Six Paths to create new market space. Now they analyze the distinct differences of alternative products & services to decide on which factors should be eliminated, created & changed in the products/services of the company. visit www.kamyabology.com for best business ppts

Communicating your strategy:

Communicating your strategy Visual Strategy Fair is the next step. This is a vital step in which the executives draw a ‘to be’ strategy. This is a strategy canvas that is based on insights from market. Further the ideas are tested with the customers, non-customers & lost customers. After refining the ‘to be’ strategy, the last step is to communicate it to the employees in an easy manner. Communicating the ‘to be’ strategy to the employees so that they understand it well is known as Visual Communication. visit www.kamyabology.com for best business ppts

Sustainable growth:

Sustainable growth A company should formulate & implement Blue Ocean Strategy in the right manner. This itself stops others from imitating it’s offerings. The strategy should be aligned to three strategy propositions – value, profit & people. Once this is implemented successfully it is hard to imitate. These are barriers to future entrants in the market. You need to constantly improve these value propositions. Other companies might get one value proposition right but, not all of them. The company must work on its value curve so that it doesn’t have to start competing with others. Because then its value proposition will be unique. visit www.kamyabology.com for best business ppts

Inclined to differentiate:

Inclined to differentiate Vidya Balan didn’t choose traditional roles to make a mark in Bollywood. She challenged her acting skills by accepting unconventional roles. Vidya Balan could see that the Indian audience has changed, especially women. So the movies she does, have women as the central character. The women she portrays on screen are bold, confident, risk takers & strong willed. Clearly a genre no one has ventured into. Abhay Deol & Irfan Khan also play roles that are different from the conventional heroes. They play characters which are real & are not always right in what they do. Their characters are a mixture of good & evil. visit www.kamyabology.com for best business ppts

Nintendo Wii:

Nintendo Wii Nintendo Wii ventured into a market that its competitors had left unexplored. Instead of loading more technology in the games like its competitors did, it made the games simple for it’s customers. It were clear they were not competing with the bigwigs like Sony & Microsoft. They knew they were battling the indifference of the audience who are not interested in videogames, basically the non-consumers. Clearly a new market with no competitors. They made their videogames healthy, interactive, easy at an attractive price. visit www.kamyabology.com for best business ppts

Create Blue Oceans:

Create Blue Oceans Red Oceans are the existing industries, where players are already there, it’s a known & unexplored market, with no competition. Cost savings are made by eliminating & reducing the factors an industry competes on. Buyer value is increased by creating & raising elements that the industry has never offered. Four steps of Blue Ocean Strategy: The first step is called Visual Awakening where executives draw the present strategy viz a viz competition in a visual representation. Managers venture into the field to explore Six Paths to create new market space. This is called Visual Exploration. Visual Strategy Fair is the next step which is a vital step in which the executives draw a ‘to be’ strategy. Communicating the ‘to be’ strategy to the employees so that they understand it well is known as Visual Communication. A company should formulate & implement Blue Ocean Strategy in the right manner. This itself stops others from imitating it’s offerings. The strategy should be aligned to three strategy propositions – value, profit & people to stop any possible competition. visit www.kamyabology.com for best business ppts

View the complete presentations at http://kamyabology.com:

View the complete presentations at http://kamyabology.com Get access to 1000+ existng presentations Also get access to 200 +new ppts uploaded every year Membership for one year –membership plan visit http://kamyabology.com/membershipplan.aspx Best videos module also Read benefits of kamyabology membership at http://kamyabology.com/benefit.aspx visit www.kamyabology.com for best business ppts Download best 1000+ presentations – http://kamyabology.com

authorStream Live Help