blue ocean strategy By: G.E Zafran ATENEO-MBA REGIS Program Go where profits and growth are-and where the competition isn’t

Red versus blue 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 company’s activities with its strategic choice of differentiation or low cost Align the whole system of a company’s activities in pursuit of differentiation and low cost

Six paths to blue ocean strategy Industry Strategic group Buyer group Scope of Product or service offering Functional-emotional orientation of an industry Time To Creating Across From Competing Within The six conventional boundaries of competition

Strategy canvas of ( yellow tail)

Four actions framework A new Value Curve Reduce: Which factors should be reduced well below the industry’s standard Create: which factors should be created that the industry has never offered Raise: Which factors should be raised well above the industry’s standard Eliminate: Which of factors that the industry takes for granted should be eliminated?

Minimizing risks & maximizing opportunities in formulation & executing blue ocean creation Formation Principles Formulation Risks Search Risk Planning Risk Scale Risk Business model Risk Reconstruct market boundaries Focus on the big picture, not the numbers Reach beyond existing demand Get the strategic sequence right Execution Principles Execution Risks Overcome key organizational hurdles Build execution into strategy Organization Risk Management Risk