Blue Ocean Strategy :Blue Ocean Strategy about winning without fighting


Slide 2:to fight and conquer in all your battles is not supreme excellence; supreme excellence consists in breaking the enemy's resistance without fighting Master Sun Tzu in ‘ Art of War’


Blue Ocean strategy :Blue Ocean strategy Conventional Strategy DIFFERENTIATION OR LOW COST Blue Ocean talks about Value Innovation DIFFERENTIATION AND LOW COST


Value Innovation :Value Innovation Region where a company’s actions favourably affect both its cost structure and its value proportion to buyers Cost savings by eliminating and reducing the factors an industry competes on Buyer values is lifted by raising & creating elements the industry has never offered Over time, costs are reduced further as scale economies kick in


Comparison of Red vs. Blue :Comparison of Red vs. Blue


How to find new Value Curve :How to find new Value Curve Four Actions Framework Eliminate Which of the factors that the industry takes for granted should be eliminated? Reduce Which factors should be reduced well below the industry's standard? Raise Which factors should be raised well above the industry's standard? Create Which factors should be created that the industry has never offered?


Case Study 1 : US Wine Industry Pre-Yellow Tail :Case Study 1 : US Wine Industry Pre-Yellow Tail


Case Study 1: US Wine Industry Post Yellow Tail :Case Study 1: US Wine Industry Post Yellow Tail


Case Study 1 :Value Curve for Yellow Tail :Case Study 1 :Value Curve for Yellow Tail Eliminate Enological Terminology Above the Line Focus on Aging Quality Reduce Vineyard Prestige & Legacy Wine Complexity Wine Range Raise Price as compared to Budget Retail Store Environment Create Easy Drinking Ease of Selection Fun & Adventure


Case Study 2 : US Women Exercise Pre Curves :Case Study 2 : US Women Exercise Pre Curves


Case Study 2: US Women Exercise Post Curves :Case Study 2: US Women Exercise Post Curves


Case Study 2 :Value Curve for Curves :Case Study 2 :Value Curve for Curves Reduce When compared to traditional gym Price Amenities Equipment Workout time Availability of instructors Raise Environment encouraging discipline & motivation Same sex non-threatening Create Womanly fun atmosphere


Case Study 3 : Cricket Before IPL :Case Study 3 : Cricket Before IPL


Case Study 3: Cricket After IPL :Case Study 3: Cricket After IPL


Case Study 3 :Value Curve for IPL :Case Study 3 :Value Curve for IPL Reduce Spectator Time Invested (Competes with Movie/Football) Emphasis on Classic Techniques (Batting/Bowling) Emphasis on Patience, Perseverance Raise Emphasis on Athleticism Pace of the Game Entertainment with Bollywood, Cheerleaders etc. Certainty of Result Create City Loyalty Welcome to Dummies


Is Tata Nano Really Creating a Blue Ocean ? :Is Tata Nano Really Creating a Blue Ocean ?


Slide 17:skillful leader subdues the enemy's troops without any fighting; he captures their cities without laying siege to them; he overthrows their kingdom without lengthy operations in the field Master Sun Tzu in ‘ Art of War’


Slide 18:Reference : Blue Ocean Strategy By W. Chan Kim, Renée Mauborgne