blue ocean

Slide 1: 

Karthik Krishnamoorthy BUS 240 - eCommerce

Red Ocean Vs Blue Ocean : 

Red Ocean Vs Blue Ocean

Creating Blue Ocean Value Innovation : 

Creating Blue Ocean Value Innovation Company’s cost act favorably for both innovators and buyers Cost savings occur by eliminating and reducing factors an industry competes Buyer value is provided by never before offered products Cost is reduced further as scale of economy kicks in VI VI COST VALUE

Creating Blue OceanTools : 

Creating Blue OceanTools Strategy Canvas diagnostic and action framework for building a compelling strategy X-Y Axis, where X represents factors and Y represents company position E.g Yellow Tail Wine

Creating Blue OceanTools : 

Creating Blue OceanTools Four Action Framework Eliminate, Reduce,Raise and Create

Creating Blue OceanTools : 

Creating Blue OceanTools ELIMINATE-REDUCE-RAISE-CREATE GRID E.g Yellow Tail Wine

Creating Blue OceanThree Characteristics : 

Creating Blue OceanThree Characteristics For a good strategy Focus - on the important areas and not on every single factor Divergence - away from the competitors offerings Tagline - has a simple easy to communicate

Creating Blue OceanSix Principles : 

Creating Blue OceanSix Principles Formulation Principles Reconstruct Market Boundaries … overcome believes. Reach beyond existing Demand … go for uncontested space. Get the strategic sequence right … value [innovation] first.

Creating Blue OceanSix Principles : 

Creating Blue OceanSix Principles Buyer utility Is there exceptional buyer utility in your business idea? Adoption What are the adoption hurdles in actualizing your business idea? Are you addressing them up front? Price Is your price easily accessible to the mass of buyers? Cost Can you attain your cost target to profit at your strategic price? YES YES YES YES No  Rethink No  Rethink No  Rethink No  Rethink

Creating Blue OceanSix Principles : 

Creating Blue OceanSix Principles Execution Principles Overcome key organizational hurdles Cognitive, resource and political hurdles Build execution into strategy Fair process strategy formulation Examples Yellow Tail Southwest Cirque du Soleil Home Depot

Thank you : 

Thank you Recommended !