1.
Page 1© UCSI Blue Ocean Strategy Consulting @ UCSI Consulting Group. All Rights Reserved.
Blue Ocean Shift
Beyond Competing, Towards Creating

2.
Page 2© UCSI Blue Ocean Strategy Consulting @ UCSI Consulting Group. All Rights Reserved.
RED OCEAN
Compete in existing
market space
Exploit existing demand
Differentiation OR Low Cost
(Value / Price Improvement)
BLUE OCEAN
Create uncontested
market space
Create and capture new
demand
Differentiation AND Low Cost
(Value Innovation)

3.
Page 3© UCSI Blue Ocean Strategy Consulting @ UCSI Consulting Group. All Rights Reserved.
Was there a pattern?
1920s 1980s 2000s onwards
Wii (Nintendo)Cirque du soleil
Model T (Ford)
Real-time news (CNN)
Southwest Airlines NTT DoCoMo’i-mode
Curves
[Yellow Tail]
Computing Tabulating
Recording Corporation
Palace Theatre (NY 1920)
Square
CitizenM

4.
Page 4© UCSI Blue Ocean Strategy Consulting @ UCSI Consulting Group. All Rights Reserved.
Creating Uncontested Market Space (or Blue Oceans)
Prof. W. Chan Kim &
Renee Mauborgne
There is no such thing as a
permanently great company,
nor a permanently great
industry.
But there are permanently great
strategic moves…
Proven Steps to inspire
confidence and seize
new growth

5.
Page 5© UCSI Blue Ocean Strategy Consulting @ UCSI Consulting Group. All Rights Reserved.
3 Steps to Creating your own Blue Oceans (Blue Ocean Shift)
Create
Create your new strategic move
New Business
Model (ERRC)
Six Path To
Reconstruct
Imagine
Imagine where you could be
Look for
Noncustomers
Understand
Pain Points
Understand
Understand
your industry
Mobilize
Your Team
Understand where
are you now

6.
Page 6© UCSI Blue Ocean Strategy Consulting @ UCSI Consulting Group. All Rights Reserved.
Blue Ocean Move in the Hotel industry
A Case Study Walk Thru

7.
Page 7© UCSI Blue Ocean Strategy Consulting @ UCSI Consulting Group. All Rights Reserved.
3 Steps to Creating your own Blue Oceans (Blue Ocean Shift)
Understand
Understand
your industry
Mobilize
Your Team
Understand where
are you now

8.
Page 8© UCSI Blue Ocean Strategy Consulting @ UCSI Consulting Group. All Rights Reserved.
Founders of citizenM
Rattan Chadha and Michael Levie (2008)

9.
Page 9© UCSI Blue Ocean Strategy Consulting @ UCSI Consulting Group. All Rights Reserved.
Star Rated Hotels…
The Star Hotel classification sets the customer’s expectations.
i.e. Can you have a small swimming pool in a 5-star hotel ?

10.
Page 10© UCSI Blue Ocean Strategy Consulting @ UCSI Consulting Group. All Rights Reserved.
How do you create a Blue Ocean in the Hotel Industry?

11.
Page 11© UCSI Blue Ocean Strategy Consulting @ UCSI Consulting Group. All Rights Reserved.
Luxury 3 Star
LOW
HIGH
“As is” Strategy Canvas of the industry Understand
your industry

12.
Page 12© UCSI Blue Ocean Strategy Consulting @ UCSI Consulting Group. All Rights Reserved.
3 Steps to Creating your own Blue Oceans (Blue Ocean Shift)
Imagine
Imagine where you could be
Look for
Noncustomers
Understand
Pain Points
Understand
Understand
your industry
Mobilize
Your Team
Understand where
are you now

13.
Page 13© UCSI Blue Ocean Strategy Consulting @ UCSI Consulting Group. All Rights Reserved.
Plan /Review Check in Stay Sleep Dine Check Out
Customer
Productivity
Bias
Reviews
Limited
Internet &
Entertainment
Long
Process
Simplicity
Types of
room
Complicated
Convenience
Location of
Hotel
Limited
Choices
Risk Reduction
Price
fluctuation
Poor
Quality
of Bed &
Shower
Price
(Expensive
Room
Service)
Fun & Image
Long &
boring
Poor Service
(Rigid Staff)
Poor
Design
Boring
Environmental
Friendliness
Paper Paper
Addressing the pain points of the Customers & Industry Understand
Pain Points

14.
Page 14© UCSI Blue Ocean Strategy Consulting @ UCSI Consulting Group. All Rights Reserved.
Look for noncustomers
Underserved Travellers
Budget (Smart)
Travellers
Best Bargain &
Looking for
affordable ‘luxury’
Millennials
Looking for Social
Interaction/Tech
and Mobile Savvy
Culture Seekers
Minimum time in
the room &
seeking
experience
Back Packers
Looking for a
longer Stay
Look for
Noncustomers

15.
Page 15© UCSI Blue Ocean Strategy Consulting @ UCSI Consulting Group. All Rights Reserved.
3 Steps to Creating your own Blue Oceans (Blue Ocean Shift)
Create
Create your new strategic move
New Business
Model (ERRC)
Six Path To
Reconstruct
Imagine
Imagine where you could be
Look for
Noncustomers
Understand
Pain Points
Understand
Understand
your industry
Mobilize
Your Team
Understand where
are you now

16.
Page 16© UCSI Blue Ocean Strategy Consulting @ UCSI Consulting Group. All Rights Reserved.
Path 1:
Look Across Alternative Industries
Blue OceanRed
Ocean
Path 2 :
Look Across Strategic Groups within your industry
Path 3 :
Look Across the Chain of the Buyers/Redefine Buyers
Path 4 :
Look Across Complementary
Product/Service Offerings (Provide Total Solution)
Path 5 :
Rethink the Functional - Emotional Orientation
Path 6 :
Participate in shaping external trends over time
The Six Paths Framework : How it works to open up a new
Value Cost Frontier

17.
Page 17© UCSI Blue Ocean Strategy Consulting @ UCSI Consulting Group. All Rights Reserved.
Path 2: Looking across Strategic Groups
SLEEPING EXPERIENCE
CLEANLINESS & SECURITY
PRICE
(AFFORDABLE)
PRICE
(EXPENSIVE)
INCONSISTENCY
(EXPECTATION)
NOISE
LACK STYLE & DESIGN
VALUE FOR MONEY
THEME
BATHROOM
LOCATION
LOCATION
Luxury Hotels
3 Star Hotels
Six Path To
Reconstruct

18.
Page 18© UCSI Blue Ocean Strategy Consulting @ UCSI Consulting Group. All Rights Reserved.
LUXURY BUT LACK STYLE & DESIGN
Path 5: Rethink Functional or Emotional Appeal

19.
Page 19© UCSI Blue Ocean Strategy Consulting @ UCSI Consulting Group. All Rights Reserved.
Path 6: Shaping external trends over time
INCREASE OF SOCIAL CITIZENS
MORE PEOPLE ARE FLYING BECAUSE
OF BUDGET AIRLINES
INSURGENCE OF SMART & VALUE
FOR MONEY TRAVELLERS
TECHNOLOGY SAVVY (MOBILE)

20.
Page 20© UCSI Blue Ocean Strategy Consulting @ UCSI Consulting Group. All Rights Reserved.
3 Steps to Creating your own Blue Oceans (Blue Ocean Shift)
Create
Create Your new strategic move
New Business
Model (ERRC)
Six Path To
Reconstruct
Imagine
Imagine where you could be
Look for
Noncustomers
Understand
Pain Points
Understand
Understand
your industry
Mobilize
Your Team
Understand where
are you now

21.
Page 21© UCSI Blue Ocean Strategy Consulting @ UCSI Consulting Group. All Rights Reserved.
Tune Hotels video

22.
Page 22© UCSI Blue Ocean Strategy Consulting @ UCSI Consulting Group. All Rights Reserved.
Costs
Buyer Value
Value Innovation is the cornerstone of BOS
Eliminate
Reduce
Raise
Create
Value
Innovation

23.
Page 23© UCSI Blue Ocean Strategy Consulting @ UCSI Consulting Group. All Rights Reserved.
ERRC Grid
Eliminate Raise
Front Desk and Concierge service
Bellhops and doormen
Full Service restaurant and room service
Lobby
Sleeping Environment – Extra large bed,
luxurious linens, quietness , shower power
Prime location
Free movies on demand, phone calls at VOIP,
free high speed internet speed
Lots of plugs (for Gadgets)
Reduce Create
Guestroom Types
Room Size
Price vis-a-vis luxury Hotel
Cost of Building (Modular)
Kiosks for one-to- three minute self check-ins
Communal living environment with 24/7 bar
& pantry
Multitasking “ambassadors” –hired for
warmth and can-do attitude -No Scripted staff

24.
Page 24© UCSI Blue Ocean Strategy Consulting @ UCSI Consulting Group. All Rights Reserved.
Luxury Citizen M 3 Star
LOW
HIGH
Eliminate Reduce Raise Create
“To be” Strategy Canvas of citizenM
Tagline: Affordable Luxury for the People
New Business
Model (ERRC)

25.
Page 25© UCSI Blue Ocean Strategy Consulting @ UCSI Consulting Group. All Rights Reserved.
Affordable Luxury for the People

26.
Page 26© UCSI Blue Ocean Strategy Consulting @ UCSI Consulting Group. All Rights Reserved.
Various Lobbies

27.
Page 27© UCSI Blue Ocean Strategy Consulting @ UCSI Consulting Group. All Rights Reserved.
Room Size

28.
Page 28© UCSI Blue Ocean Strategy Consulting @ UCSI Consulting Group. All Rights Reserved.
24/7 Self Service Bar & Canteen

29.
Page 29© UCSI Blue Ocean Strategy Consulting @ UCSI Consulting Group. All Rights Reserved.
citizenM key figures

30.
Page <N>Page 30© UCSI Blue Ocean Strategy Consulting @ UCSI Consulting Group. All Rights Reserved.
Blue Ocean Strategy is…
… seeing what
everybody else
has seen
but thinking what
nobody else
has thought through a
systematic process

31.
Page 31© UCSI Blue Ocean Strategy Consulting @ UCSI Consulting Group. All Rights Reserved.
Let’s Talk!
@ucsiconsulting#bethebos www.ucsiconsulting.com
UCSI CONSULTING GROUP SDN BHD
(774433-W)
Q Sentral, Suite 28-13, Jalan Stesen
Sentral, KL Sentral, 50470 Kuala Lumpur
+603 9212 4044 / +6016 289 4984
raj@ucsiblueoceanstrategy.com
UCSI Blue Ocean Strategy Consulting is a certified member of the global Blue
Ocean Strategy Community of Practice, Focusing in:
Australia | Canada | China| India | Indonesia | Malaysia | Middle East | Singapore

32.
Page 32© UCSI Blue Ocean Strategy Consulting @ UCSI Consulting Group. All Rights Reserved.
In reality, there are three different strategic thinking
approaches that companies can apply
Create new
markets,
target
different
customers &
Buyers
STRATEGIC INNOVATION
(BLUE OCEAN STRATEGY)
Developing breakthrough business opportunities
and create markets that don’t yet exist
Develop new products
and assets
INCREMENTAL INNOVATION
(ADJACENCY EXPANSION )
Expanding from existing business
into “new to the company”
businesses
Add incremental products and
assets
Enter
adjacent
markets,
serve
adjacent
customers
HOW TO WIN
Use existing products and assets
MARGINAL INNOVATION
(RED OCEAN
COMPETITIVE)
Optimizing existing products
for existing customers
Serve existing
markets and
customers
WHERETOPLAY
2. Source: HBR, May 2012, Managing Your Innovation Portfolio