1. Blue Ocean Strategy
What’s it all about?

2. - Blue Oceans – definitions and examples
- Formulating Blue Ocean strategies
- Executing Blue Ocean strategies
- key take aways

3. Blue Oceans – definitions and examples
Red Ocean
Blue Ocean
Compete in existing mtks
Create uncontested mkt space
Beat the competition
Make the comp irrelevant
Exploit existing demand
Create and capture new demand
Make the value cost trade off
Break the value cost trade off
Costs
Value Innovation
Examples of “blue Ocean”
Cirque du Soleil
Apple
Ryan Air (European Low cost airline)
Value Innovation
“instead of focusing on beating the competition focus on making the competition irrelevant by creating a leap in value for the customer
“must align innovation to utility, price and cost and must time entry accordingly”
Of all business launches in 108 companies studied
86% line extensions (red ocean) – 62% total revenue and only 39% profit
14% - “blue ocean” releases – 38% revenue and 61% profit
Buyer Value

4. Formulating Blue Ocean Strategy
Formulation Principles
Reconstruct Market Boundaries
Focus on big picture, not the numbers
Reach beyond existing demand
Get the strategic sequence right
Overcome key org hurdles
Build execution into the strategy
Choosing which “factors” to attack (industry specific – eg airline – price, meals, lounges, seating class choices, hub connectivity, service, speed, frequency point to point flights etc etc) – and using this to create a “strategy canvas”
BA – focus on lounges, meals, seating class, hub connectivity
Ryan air – focus in price, cost, point to point
Red Ocean
Blue Ocean
Industry
Focuses on rivals within industry
Looks across alternative industries
Strategic Group
Focus on strategic position within group
Looks across strategic groups in industry
Buyer power
Focus on better serving buyer group
Redefines the industry buyer group
Scope of product offering
Maximises value of prod within industry
Looks across to complimentary product offerings
Functional / emotional orientation
Focus on improving price performance
Re-thinks the orientation within the industry
Time
Focus on adapting to external trends
Participates in shaping ext trends

5. A “fictional” Strategy Map for Psion Teklogix…
Where would you draw the strategy canvas for Psion Teklogix and our competitors?????

6. Eliminate - reduce - Raise - Create grid:
Trying to have a complete product for every market (IKON Variants)
Raise
Quality
Ease to do business with
Relationship Management
Reduce
Focus on price
Focus on Ruggedness
Create
OSM & Modularity & commercialize this

7. Getting the Strategic sequence right
Exceptional utility
Exceptional utility
Revenue Focused No
Yes
Price No
Yes
Cost
Profit Focused
Yes No
Adaption
Yes
Sustain, re – value innovate (protected by barriers to entry)
Blue Ocean

8. Key Take-away’s
Look outside “the box” and beyond the competition to generate “value innovation”
Strategy maps can be used to show the strategic path
Make decisions on “features” to eliminate, start, enhance or reduce
Blue Oceans are usually “self protecting for a number of years” but will turn red over time – so continually look for fresh blue Oceans…..

9. Where is Psion Teklogix next Blue Ocean?????