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Blue Ocean Strategy

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Lordesito Espinosa

on 6 September 2013

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Transcript of Blue Ocean Strategy

How to create Uncontested Market Space
and Make the Competition Irrelevant

Blue Ocean Strategy
Cirque Du Soleil
Traditional Circus
Php 2,300-5,500
Php 7,000-10,000 VIP
Adults /Corporate clients
Fun and thrill
Intellectual sophistication
Artistic richness of theaters
"We Reinvent the Circus"
Php 150
Php 1,750 VIP
Animals and trainors
create uncontested market space
make competition irrelevant
create and capture new demand
break the value-cost trade-off
Align the whole system of a firm's
activities in pursuit of differentiation
and low cost.
compete in existing market space
beat the competition
exploit existing demand
make the value-cost trade-off
Align the whole system of a firm's activities with it's strategic choice in differatiation or low cost.
A New Value Curve
Which factors should be REDUCED WELL BELOW the industry's standard?
Which of the factors that the industry takes for granted should be ELIMINATED?
Which factors should be CREATED that the industry has never offered?
Which factors should be RAISED WELL ABOVE the industry's standard?
3 Characteristics of
a Good Strategy
Path 1:
Look Across Alternative Industries
Path 2:
Look Across Strategic Groups
Within Industries
Path 3:
Look Across the Chain of Buyers
Path 4:
Look Across Complementary Product and Service Offerings
Path 5:
Look Across Functional or Emotional Appeal to Buyers
Path 6:
Look Across Time
Principles of Blue Ocean Strategy
Reconstruct Market Boundaries
Focus on the big picture, not the numbers
Reach beyond existing demand
Get the strategic sequence
Step 1: Visual Awakening
Step 2: Visual Exploration
Step 3: Visual Strategy Fair
Step 4: Visual Communication
Your Market
First Tier
Second Tier
Third Tier
Buyer Utility
Is there exceptional buyer utility in your business idea?
Is your price easily accessible to the mass of buyers?
Can you attain your cost target to point at your strategic price?
What are the adoption hurdles in actualizing your business idea? Are you addressing them upfront?
Full transcript