6. 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 similar
select based on price
7. THE CORE PRINCIPLES
•Reconstruct Market Boundaries….....overcome beliefs.
•Reach Beyond Existing Demand…..go for uncontested space.
•Get the strategic sequence right….value(innovation) first.
8. RECONSTRUCT MARKET BOUNDARIES
BOS Logic: Reconstruct market boundaries
Boundaries of Head-to-Head Creating
Competition Competition New Market Space
Boundaries of Head-to-Head Creating
Competition Competition
Focuses on rivals within its New Market Space
Industry
industry Looks across alternative
Focuses on rivals within its
Industry industries
industry
Focuses on competitive position
Strategic Group
within strategic group Looks across strategic groups
Focuses on competitive position
Strategic Group within its industry
within strategic group
Focuses on better serving the
Buyer Group
buyer group
Focuses on better serving the Redefines the buyer group of the
Buyer Group industry
buyer group
Focuses on maximizing the value
Scope of Product and
of product and service offerings
Service Offerings Focuses on maximizing the value Looks across to complementary
Scope of Product and within the bounds of its industry product and service offerings that
of product and service offerings
Service Offerings go beyond the bounds of its
within the bounds of its industry
Focuses on improving price-
Functional-emotional industry
performance with the functional-
Orientation of an Focuses on improving price- Rethinks the functional-emotional
Functional-emotional emotional orientation of this
Industry performance with the functional-
industry orientation of its industry
Orientation of an
emotional orientation of this
Industry
industry on adapting to external
Focuses
Time/Trends
trends as they occur Participation in shaping external
Focuses on adapting to external
Time/Trends trends over time
trends as they occur
10. GET THE STRATEGIC SEQUENCE RIGHT
Buyer utility
Is there exceptional buyer
utility in your business idea?
No Rethink
YES
Price
Is your price easily accessible to the
mass of buyers?
No Rethink
YES
Cost
Can you attain your cost target to
profit at your strategic price? No Rethink
YES
Adoption
What are the adoption hurdles in
actualizing your business idea?
Are you addressing them up front? No Rethink
YES
A commercially viable Blue Ocean Strategy
11. RED OCEAN STRATEGY
• Building advantage over the competition.
• Limited Growth
• Outperform their rivals
• Prospects for profit and growth may reduce
13. First company.
Mumbai with 45 cabs in April 2007.
Scaled to a fleet of 5,300+ cabs currently.
3rd Largest in the world.
Market share.
14. Facilities by Meru
• Air-conditioned. • Tamper-proof digital cab
meters with a printed receipt.
• GPS enabled vehicles.
• Trained chauffeurs.
• 24/7
• Free Internet Service.
• Uses clean green fuel.
15.
16. • Himalaya is the one of the best Herbal healthcare
products company in the World.
• One of the first company to introduce Herbal Healthcare
Products in Indian market.
• They created new market of consumers who prefer
Medically Proven Herbal Medicine.
• Great Brand Value .
• Top Innovative products –Serpina,LIV.52,etc.
• Have a great Brand Trust.
17.
18. BIBLIOGRAPHY
• http://www.scribd.com/doc/44714032/red-ocean-
strategy
• W. Chan Kim, Renée Mauborgne, Blue Ocean
Strategy, 2005,Havard Business School Press.
• http://blueoceanstrategicplanning.blogspot.com/200
9/04/red-ocean-vs-blue-ocean.html
