marketing/business development

1. BLUE OCEAN STRATEGY
“NOVO NORDISK”
DEVELOPED By:
PHARM-NET

3. What is a Blue Ocean?
• Blue Ocean denote all the industries not
in existence today. This is the unknown
market space.
• Red Ocean represent all the industries
in existence today. This is the known
market space.

4. 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(either/or)
Break the value cost trade-off
Align the whole system of a firm’s
activities with its strategic choice of
differentiation or low cost
Align the whole system of a firm’s
activities in pursuit of differentiation
and low cost
Value creation or addition=added
value
Value Innovation=innovation value
Red Ocean versus Blue Ocean

5. Value innovation is the “new” strategic logic behind
Blue Ocean Strategy.
Value innovation only occurs when organizations have
aligned innovation with utility, price and costs.
The market must be ready to accept the product,
meaning that timing is key.
The focus is on both differentiation and low cost to
provide value to both customers and the organization.
Value Innovation

6. Blue Ocean Strategy Tools
Strategy
Canvas
1. A diagnostic tool for building a compelling
blue ocean strategy
2. It captures the current state of play in the
known market space
3. 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.

8. 3 Characteristics of a Good
Blue Ocean Strategy
• It is focused, it is not diffused
across all potential aspects of the
market.
• The shape of the value curve
diverges from any potential
competitors.
• It has compelling tagline

9. Novo Nordisk created a blue ocean in the insulin
industry and transformed from an insulin producer
to a diabetes care company
•Industry focused on key influencers(doctors)
•Nordisk saw that it could break away from the
competition by shifting the company’s thinking to users
(patients) rather than doctors.
-Novopen= the 1st
user-friendly insulin delivery
system
-Novolet=prefilled disposable insulin pen
-Innovo= electronic memory records designed to
manage and reduce risk of missing a dose.

10. Grid of Novo Nordisk
ELIMINATE
Dependency on doctors/family
RAISE
Administration Risk minimization
Administration Convenience
Self Esteem
Reduce Efficacy
Side effects Minimization
Patient out of pocket minimization
CREATE
Compliance and adherence assistance
Self-Tracking Capability

12. Focus
Click an image to discover how our Triple Bottom Line business
principle guides our sustainability efforts.

14. Thank You