Blue Ocean Strategy How to Create Uncontested Market Space and Make the Competition Irrelevant PEDRO COELHOSO By W. Chan Kim & Renee Mauborgne

Blue Ocean Strategy Cirque du Soleil Creating Uncontested Market Space and Making the Competition Irrelevant

Red Ocean Strategy Blue Ocean Strategy

Summary of Blue Ocean Strategy  New Market Space  Continuing Creation of Blue Oceans  Impact of Creating Blue Oceans  Rising Imperative of Creating Blue Oceans  From Company and Industry to Strategic Move  Value Innovation  Formulating and Executing Blue Oceans

Continuing Creation of Blue Oceans Ford’s 1908 Model T CNN 1980 Real-Time News 24/ Apple’s ipod 1970 The First Mouse New Market Space New Market Space Creating Blue Oceans Is Consistent Across Time Regardless of Industry

Impact of Creating Blue Oceans

Rising Imperative of Creating Blue Oceans Driving forces include:  Technological advances & improved industrial productivity  Unprecedented array of products and services available  Supply exceeds demand  Globalization, niche markets and monopolies disappear  20th century strategy and management approach waning

Formulating and Executing Blue Oceans

Value Innovation, Blue Oceans Cornerstone From Company and Industry to Strategic Move From Company and Industry to Strategic Move

3 Things I’ve Learned 1.Blue Oceans aren’t always accepted at first 2.Strategic Framework: The Engelbart Connection 3.Blue Oceans can be profitable What I Disagree With That there exists a strategic framework for Blue Oceans. By nature they do not conform to one framework

How Relate to MSMIT “As red oceans become increasingly bloody, management will need to be more concerned with blue oceans than the current cohort of managers is accustomed to.”  Business environment is changing  20th century strategy & management approach is changing

Questions?