1.
Blue Ocean Strategy
By: Erfan MORADIAN
Dec 15, 2015

2.
Introduction
Where did BOS come from?

3.
History & background
Authored by W. Chan Kim and Renée
Mauborgne in 2005.
Based on a study of 150 strategic moves
spanning more than 100 years and 30 industries.
Goal!?
How to create uncontested market space
and make the competition irrelevant

4.
Create… Don’t compete!

5.
The idea
Stop competing in
overcrowded industries.
Invent and capture new
demands.
Simultaneous pursuit of
differentiation and low cost.
Red Ocean
Blue Ocean

6.
CIRQUE DU SOLEIL
Founded in 1984 by Guy Laliberté and Gilles Ste-
Croix (a group of street performers)
Price targeting upper-middle class
Year 1984 2015
Employees 73 5,022
Spectators 270,000 >100 million
Where Canada Every continent

7.
Traditional circus
Star performers
Animals and clowns
Unrelated acts
Generally mid prices
Seasonal
Emphasis on fun and thrill
Target audience: mainly children

8.
Reinventing the circus
A whole new group of customers: adults and corporate clients
Price targeting upper-middle class
No animals and star performers
Each show with a unique theme
Combining circus art, theater and ballet
Audience involvement
Artistic richness and sophistication

9.
Results
Achieved rapid growth in a declining industry with
low profit potential
Annual revenue: ~ $1 billion (2015)
Created uncontested new market space that made
the competition irrelevant

10.
How
Eliminate
Reduce
Raise
Create
Star Performers
Animal shows
Aisle concession sales
Multiple show arenas
Unique venues
Fun and humour
Thrill and danger
Theme
Refined environment
Multiple productions
Artistic music and dance

11.
BOS Canvas

12.
“In blue oceans, demand is created rather than
fought over. There is ample opportunity for
growth that is both profitable and rapid.”
– W. Chan Kim & Renée Mauborgne

13.
Blue Ocean Creation

14.
Strategic elements
Was the blue ocean created by a new entrant or
an incumbent?
Was it driven by technology pioneering or value
pioneering?
At the time of the blue ocean creation, was the
industry attractive or unattractive?

15.
Automobiles

16.
Computers

17.
Movie theaters

18.
Facts
Blue oceans are not about technology
innovation.
Incumbents often create blue oceans and usually
within their core businesses.
Company and industry are the wrong units of
analysis.
Creating blue oceans builds brands.

19.
Tools and Frameworks

20.
Red Ocean vs. Blue Ocean

21.
Value Innovation
Cost savings are made
by eliminating and
reducing the factors
an industry competes
on.
Buyer value is lifted by
raising and creating
factors the industry
has never offered.

22.
Strategy Canvas
Key competing factors
Offeringlevel

23.
Four Actions Framework

24.
ERRC Grid

25.
Six Paths Framework

26.
3 Tiers of Non-customers

27.
Sequence of Blue Ocean Strategy

28.
Barriers to Imitation
Adopting a blue ocean creator’s business model is hard
thing to do.
Imitation requires companies to make changes to their
whole system and it is not an easy feat.
The cognitive barriers can be just as effective.
(Microsoft vs Intuit)
Attempts to imitate a blue ocean creator, conflict with
the imitator’s existing brand image.(Body Shop vs
Estée Lauder and L’Oréal)

29.
Blue Ocean Leaders

30.
“Competing in overcrowded industries is no way
to sustain high performance. The real opportunity
is to create blue oceans of uncontested market
space.”

31.
Let’s create blue oceans together
https://ir.linkedin.com/in/erfanmoradian