NUR SHAZLEEN YAZMEEN AHMAD HAWARI MOHD FAZLI AZMAN ZULKIFLEE ABD RAHIM Creating Uncontested Market Space and Making the Competition Irrelevant

ABOUT THE BOOK Author: W. Chan Kim & : Renee Mauborgne Publisher: Harvard Business School Press Pages: 256 pp

ABOUT AUTHOR W. Chan Kim Renee Mauborgne W. Chan Kim is a professor of strategy and international management at INSEAD in Fontainebleau, France. Previously, he taught at the University of Michigan Business School. He has written for numerous business journals, the Financial Times, The Wall Street Journal and The New York Times, and is a founder of the Value Innovation Network. He is an advisory member for the European Union and the Country Advisor to Malaysia Renée Mauborgne is a Distinguished Fellow at INSEAD, where she is a professor of strategy and management. She is also a Fellow of the World Economic Forum and published numerous articles on strategy and managing multinational corporations.

CHAPTER STRUCTURE PART ONE: Blue Ocean Strategy Creating Blue Oceans Analytical Tools & Frameworks PART TWO: Formulating Blue Ocean Strategy Reconstruct Market Boundaries Focus on the Big Picture, Not the Numbers Reach Beyond Existing Demand Get the Strategic Sequence Right PART THREE: Executing Blue Ocean Strategy Overcome Key Organizational Hurdles Build Execution into Strategy Conclusion: The Sustainability and Renewal of Blue Ocean Strategy

BLUE OCEAN STRATEGY The high growth and profits an organization can generate by creating new demand in an uncontested market space Authors argue that red ocean strategies while necessary, are not sufficient to sustain high performance. Companies need to go beyond competing. To seize new profit and growth opportunities they also need to create blue oceans

Red Ocean Vs Blue Ocean * Red Ocean Strategy is the way that fights hard in existing market while Blue Ocean Strategy values innovation on getting new market

Creating Blue Ocean Eliminate Reduce Create Raise

Strategy Canvas – Casella Wines High Low PriceUse of enological terminology Above-the-line marketing Aging quality Vineyard prestige and legacy Wine complexity Wine range

Four Action Framework A New Value Curve Reduce Which factor should be reduced well below industry standards? 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 the factors that the industry takes for granted should be eliminated?

Six Principles of Blue Ocean Strategy

Formulating Blue Ocean Strategy 1 st Principle Reconstruct Market Boundaries Look Across Alternative Industries Look Across Strategic Groups within Industries Look Across the Chain of Buyers Look Across Complementary Product & Service Offerings Look Across Functional or Emotional Appeal to Buyers Look Across Time

Draw “to-be” canvas based on insights from field observations. Get feedback on alternative strategy canvases from customers, competitors’ customers, and noncustomers. Use feedback to build the best “to be” future strategy. Distribute your before-and- after strategic profiles on one page for easy comparison. Support only those projects and operational moves that allow your company to close the gaps to actualize the new strategy. Go into the field to explore the 6 paths to create Blue Ocean. Observe distinctive advantages of alternative products & services. See which factors should eliminate, create or change. Compare your business with competitor’s by drawing your strategy canvas. Change your strategy where needed. Visual Awakening Visual Exploration Visual Strategy Fair Visual Communication 2nd Principle Focus on the Big Pictures, Not the Numbers

Your Market First Tier “Soon- to-be” noncus tomer who are on the edge of the market, waiting to jump ship. Second Tier “Refusin g” noncust omer who consciou sly choose against the market. Third Tier “Unexplored” noncustomers who are in the markets distant. 3rd Principle Reach Beyond Existing Demand

Is there exceptional buyer utility in your business? Buyer Utility Is your price easily accessible to the mass of buyers? Price Can you attain your cost target to profit at your strategic price? Cost What are the adoption hurdles in actualizing your business idea? Are you addressing them up front? Adoption YES A Commercia lly Viable Blue Ocean Idea YES NO - Rethink 4th Principle Get the Strategic Sequence Right

Executing Blue Ocean Strategy Let Managers experience it FIRST-HAND Focus on HOT SPOT issues, search out COLD SPOT Zoom on Kingpins Put Kingpins into fishbowls Transparency Inclusion Fair Process Leverage the ANGELs Silence the DEVILs 5th Principle Overcome Key Organizational Hurdles

Fair Process EngagementExplanation Expectation Clarity Create a culture of trust and commitment, the rest shall come naturally. 6th Principle Build Execution into Strategy

CONCLUSION LESSON 1 Be clear of elements that add-value. Keep useless elements that devalue will not bring any good. Reduce or eliminate them and reserve space to create and raise those which are more useful. LESSON 2 Focus on the things that is important. Do not always follow the crowd, stand alone and make hard decision which different from the norm. Walk you talk. LESSON 3 Sad truth! People will only appreciates when your effort adds value to their life. LESSON 4 Options that you have now is not necessarily the best, always look for alternatives and dare to challenge conventional wisdom. LESSON 5 Everything that happens, happens for reason. Look at things from different perspectives.

CONCLUSION LESSON 6 Push yourself to the limit and strive hard to achieve the goals. NO free lunch in this world and you shall get what you deserve based on your effort. LESSON 7 If you can't walk, you can't fly. Proper planning is always the most crucial step. LESSON 8 Big problem often comes from small problems. Work backward by breaking into smaller pieces while solving big problem LESSON 9 Focus on fair process, so the same principle applies in life. Be fair. LESSON 10 Renewal of Blue Ocean Strategy

LESSON LEARNT To sustain in the industry, be CREATIVE and INNOVATIVE. Do things DIFFERENTLY from the market with LOWEST COST possible. In order to be DIFFERENT from competitors, you have to think OUT OF THE BOX! Get your TEAM to SHARE the same vision to achieve missions and objectives. To sustain in the industry, be CREATIVE and INNOVATIVE. Do things DIFFERENTLY from the market with LOWEST COST possible. In order to be DIFFERENT from competitors, you have to think OUT OF THE BOX! Get your TEAM to SHARE the same vision to achieve missions and objectives.