Post on 03-Apr-2018
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Blue Ocean StrategyHow to create
uncontested market spaceand make the competition irrelevant
Katharina BOST 12/06/2006
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About the Founders: Chan & Renee
W. Chan Kim
The Boston Consulting Group
Bruce D. Henderson Chair
Professor of Strategy and
International Management
Rene Mauborgne
The INSEAD Distinguished
Fellow and Professor of Strategy
and International Management
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Two worlds
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Two worlds
Red Ocean Strategy Blue Ocean Strategy
Compete in existing market
space.
Create uncontested market
space.
Beat the competition. Make the competition
irrelevant.
Exploit existing demand. Create and capture new
demand.
Make the value-cost trade-off. Break the value-cost trade-off.
Align the whole system of a
strategic firm's activities with
its choice ofdifferentiation or
low cost.
Align the whole system of a
firm's activities in pursuit of
differentiation andlow cost.
VALUE INNOVATION
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The rising Imperative of Creating Blue Oceans
supply exceeds demand
globalization
accelerated commoditization of products and services increasing price wars
shrinking profit margins
brands are becoming more similarselect based on price
...
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BOS Logic: The Core Principles
Reconstruct Market
Boundaries
overcome believes.
Reach beyond
existing Demand
go for uncontested space.
Get the strategic
sequence right
value [innovation] first.
VI
VI
COST
VALUE
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BOS Logic: Reconstruct market boundaries
IndustryFocuses on rivals within its
industry
Strategic GroupFocuses on competitive position
within strategic group
Buyer GroupFocuses on better serving the
buyer group
Scope of Product and
Service Offerings
Focuses on maximizing the value
of product and service offerings
within the bounds of its industry
Functional-emotional
Orientation of an
Industry
Focuses on improving price-
performance with the functional-
emotional orientation of this
industry
Time/Trends Focuses on adapting to externaltrends as they occur
Looks across alternative
industries
Looks across strategic groups
within its industry
Redefines the buyer group of the
industry
Looks across to complementary
product and service offerings that
go beyond the bounds of its
industry
Rethinks the functional-emotional
orientation of its industry
Participation in shaping external
trends over time
Boundaries of
Competition
Head-to-Head
CompetitionCreating
New Market Space
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BOS Logic: The Core Principles
Reconstruct Market
Boundaries
overcome believes.
Reach beyond
existing Demand
go for uncontested space.Get the strategic
sequence right
value [innovation] first.
VIVI
COST
VALUE
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BOS Logic: Reach beyond existing demand
Core Customer Noncostumer
Soon-to-be-NC Refusing Customer
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BOS Logic: The Core Principles
Reconstruct Market
Boundaries
overcome believes.
Reach beyond
existing Demand
go for uncontested space.
Get the strategic
sequence right
value [innovation] first.
VIVI
COST
VALUE
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BOS Logic: Get the Strategic Sequence right
Buyer utility
Is there exceptional buyer
utility in your business idea?
Adoption
What are the adoption hurdles in
actualizing your business idea?
Are you addressing them up
front?
Price
Is your price easily accessible to
the mass of buyers?
Cost
Can you attain your cost target to
profit at your strategic price?
A commercially viable Blue Ocean Strategy
YES
YES
YES
YES
No Rethink
No Rethink
No Rethink
No Rethink
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The case of Accor's Formule 1
The value curve of Formule 1 in the French Low Budget Hotel Industry
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References
W. Chan Kim, Rene Mauborgne, Blue Ocean Strategy, 2005,
Havard Business School Press.
http://www.blueoceanstrategy.com
HANDELSBLATT, Donnerstag, 06. Oktober 2005,
Mit Nichtkunden neue Mrkte finden.
http://www.hotelformule1.com
http://www.blueoceanstrategy.com/http://www.hotelformule1.com/http://www.hotelformule1.com/http://www.blueoceanstrategy.com/7/29/2019 Katharina Bost c
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Thank you for your
attention!!!