1.
Contents
 Blue Ocean Vs. Red Ocean Strategy
 Blue Ocean Strategy Tools
 Strategy Canvas and Four Action Framework
 Six Principals of Blue Ocean Strategy
 Formulating Blue Ocean Strategy
 Executing Blue Ocean Strategy

2.
Strategy
Canvas
 A diagnostic tool for building a compelling blue
ocean strategy
 It captures the current state of play in the
known market space
 Allow you to understand :
•where the competition is currently investing
•the factors the industry currently competes
on in product, service and delivery
•what customers receive from existing
competitive offerings on the market

3.
Eliminate
Reduce
Raise
Create

4.
 Star performers
 Animal shows
 Aisle concession sales
 Multiple show arenas
 Theme
 Redefined environment
 Multiple productions
 Artistic music and dance
 Fun and humor
 Thrill and danger
 Unique venue
The Case of Cirque du Soleil
Eliminate Reduce
Create Raise

5.
Formulation Principles Execution Principles
1. Reconstruct market
boundaries
2. Focus on the big picture,
not the numbers
3. Reach beyond existing
demand
4. Get the strategic sequence
right
5. Overcome key
organizational hurdles
6. Build execution into
strategy

6.
Blood Tears and Sweat
 Define their industry similarly and focus on being best
within it.
 Look at their industries through the lens of generally
accepted strategic groups, and strive to stand out in the
strategic group they play in.
 Focus on the same buyer group, be it the purchaser, the
user or the influencer.
 Define he scope of the products and services offered by
their industry similarly.
 Accept the industry’s functional or emotional orientation.
 Focus on same point in time-and often on current
competitive threats-in formulating strategies.

7.
1. Reconstruct Market Boundaries
Head-to-Head Strategy Blue Ocean Strategy
 Focus on rivals with in
industry
 Focuses on competitive
position with in strategic
group
 Focuses on better serving
the buyer group
 Looks across alternative
industries
 Looks across strategic group
within industry
 Redefines the industry
buyer group

8.
……Market Boundaries
Head-to-Head Strategy Blue Ocean Strategy
 Focuses on maximizing the
value of product or service
offerings with in the
bounds of its industry
 Focuses on adapting to
external trends as they
occur
 Looks across to
complementary product
and service offerings
 Participates in shaping
external trends over time

9.
2. Focus on the Big Picture, not the Numbers
Focus on the
Big Picture, not
the Numbers
The Four Steps of
Visualizing Strategy
 Visual Awakening
 Visual Exploration
 Visual Strategy Fair
 Visual
Communication

10.
……not the Numbers
 Visual
Awakening
 Compare your business with your
competitors’ by drawing your “as
is” strategy canvas
 See where your strategy needs to
change

11.
……not the Numbers
 Go to the field to explore the six
paths to creating blue oceans
 Observe the distinctive advantages
of alternative products and services
 See which factors you should
eliminate, create, or change

12.
……not the Numbers
 Draw your “to be” strategy canvas based
on insights from field observations
 Get feedback on alternative strategy
canvases from customers, competitors’
customers, and noncustomers
 Use feedback to build the best “to be”
future strategy

13.
……not the Numbers
 Distribute your before-and-after
strategic profiles on one page for easy
comparison
 Support only those projects and
operational moves that allow your
company to close the gap to actualize
the new strategy

14.
3. Reach Beyond Existing Demand
The Three
Tier of
Non-
customers
 First tier: “Soon to be” non-
customers who are the edge of
your market, waiting to jump
ship
 Second tier: “Refusing” non-
customers who consciously
choose against your market
 Third tier: “Unexplored” non-
customers who are in markets
distant from yours

15.
4. Get The Strategic Sequence Right
Buyer utility
Is there exceptional buyer
utility in your B-idea?
Price
Is your price easily
accessible to the mass of
buyers?
Adoption
What are the adoption
hurdles in actualizing
your business idea?
Cost
Can you attain your cost
target to profit at your
strategic price?
A commercially viable blue
ocean idea

16.
5. Overcome Key Organizational Hurdles
Overcome Key
Organizational
Hurdles
Cognitive
Hurdle
Motivational
Hurdle
Resource
Hurdle
Political
Hurdle

17.
……Hurdles
Cognitive
Hurdle
(status quo)
Ride the “Electric Sewer”
Meet with Disgruntled Customers
Resource
Hurdle
 Redistribute resources to your hotspots
 Redirect resources from your cold spots
 Engage in horse trading

18.
……Hurdles
Motivational
Hurdle
Zoom in on Kingpins (key influencers)
Place kingpins on a fishbowl
Atomize to get the organization to change itself
Political
Hurdle
 Secure a consigliere on your top
management team
 Leverage your angels and silence your
devils

19.
6. Build Execution Into Strategy
Fair Process of Strategy
Attitudes
Trust and Commitment – “I feel my opinion counts”
Strategy Execution
Exceeds Expectation – self initiated
Behaviour
Voluntary Cooperation – “I’ll go beyond the call of duty”
Strategy Formulation Process
Fair Process –Engagement,Explanation, Expectation clarity

20.
W. Chan Kim and Renée Mauborgne, Blue Ocean
Strategy, HBS Publication.