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White Ocean Strategy

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Diogo Machado

on 8 June 2014

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Transcript of White Ocean Strategy

White Ocean Strategy
"A powerful paradigm for sustainable success in
a world where everyone can finally be a winner!"

How companies operate and compete in the market?
Red Ocean Strategy
fierce competition
to increase sales and market share
aggressive selling techniques, price cutting and asset stripping
Blue Ocean Strategy
selling products that are
entirely novel
no market exists until the product is offered
consumers have to be persuaded that they need or want something new, something they have not heard of until the new product appears
Is this sustainable in the long-term?
Blue Ocean Strategy

evolves to
Red Ocean Strategy
with time...
at first, the competition is not very intense, each business stands firmly in its own market place
new products, new markets with plenty resources, where everyone can prosper
But then, with
more customers
higher profits
, there will be
new competitors
jumping into the market
Everyone will push to
compete to be the front-runner
Competitors will try, by whatever means they can, to beat the others
When resources deplete, then instability may occur to any competitor at any time
vicious cycle of action and reaction
Blue Ocean Strategy

evolves to
Red Ocean Strategy
with time...
The problems arising from greater competition are generated by many new players entering the market.
Consequently, due to an increasing number of rivals, the
Blue Ocean
players will be dragged from the emerging markets back to the fierce competition of the
Red Ocean
This innovative technology successfully established a new market
Not very long after the launch, when iPhone created its own market, it was very challenged
There are now newcomers presenting their own developments, called smart phones, with functions not very different, attempting to snatch market-share away from iPhone
Starbucks had been a rising star for more than a decade after lauching a new kinf of coffee shop with an appealing menu
But, as time went by, rivals have adapted to the challenge
Offering its own matching coffee at a lower price
No matter how much effort we expend on finding new ideas outside the conventional frame in order to get away from the same old means of competing, it will not be long before our competitors will catch up with us
Red Ocean Strategy
Blue Ocean Strategy
generate long-term sustainability?
White Ocean Strategy
This perspective sees the future of sustainable business as depending on the adoption of policies and missions that reflect a new moral attitude of responsibility not only to employees but towards humanity and the environment.
Some things count more than numbers...
The key principles of
White Ocean Strategy
is finding a balance between the
, the
, and
, by empowering
as the driving force to the commitment to basic ethics.
Stakeholders. They are regarded not only as its employees and its clients but many also include the whole society and community, irrespective of their involvement in the organization's business.
The concern of White Ocean Strategy is not limited just to the resources within the organization but also includes the broader range of environmental and natural resources in both the physical and mental sense, rough or delicate, tangible or intangible that belong to this world as a whole.
White Ocean Strategy places its focus on making a profit for the benefit of society before the interests of the organization and singular individuals.
No animals are used for testing
Natural ingredients are used in mufacturing
Cultivating loving-kindness and self-respect
Protecting human rights
Acting against all forms of environmental degradation
As a result, the name The Body Shop has never faded from the minds of customers worldwide.
White Ocean Businesses
The company purchase ingredients directly from farmers, without dealing with any brokers or middlemen, so that the money go right into the hands of the producers
They purchase an ice-cream recipe from a charity organization which spend the income on building housing for the poor and occupational training for the disadvantaged.
In addition, the company donates 7,5% of its income before tax to the Ben & Jerry's Foundation, to be used for community activities
Many successful businesses can stand proudly in the world of capitalism
without totally giving in to profit-making
The existence of an organization must be devoted to
making wealth for the whole society
A White Ocean Business must be founded on
The goal of a White Ocean business is to follow a
sustainable path
, where the organization can step over the conventional demand of maximizing shareholder's wealth
The capitalist economy, which places its emphasis on business revenue, has resulted in extravagant habits, material demands and faked numbers.
We should now think about sustainable capitalism
White Ocean Strategy
A New Ocean...
The world of extreme capitalism has come to the point where focusing on only physical targets is no longer sufficient
Business Orientation
Shareholders' annual results
Market share
Greedy Management
Social Sharing
International Recognition of Ethical Business
The world's most ethical companies
Measurement Points:
Corporate citizenship and responsibility
Corporate governance, innovation that leads to public well-being
Industry leadership
Executive leadership and tone from the top
Legal, regulatory and reputation track record
Internal systems and ethics compliance program
Anything received from people must be returned to the people manyfold.
White Ocean Strategy

Danai Chanchaochai
Full transcript