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BLUE OCEAN   STRATEGY
Cirque’s productions have been seen by almost  40 mn  people in  90 cities  around the world  In  less than 20 years  Cirque du soleil has achieved a level of revenues that took Ringling Bros. and Barnum & Bailey - the  global champion of the circus industry-  more than  100 years  to attain
Declining industry &  limited potential for growth Strong supplier power  on the part of star  performers and buyer power Steadily decreasing  audiences Increasing sentiments  against the use of animals UNATTRACTIVE INDUSTRY
It created uncontested new market space that made the competition irrelevant   ,[object Object]
MARKET SPACE ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],RED OCEAN BLUE OCEAN
Profit & growth consequences of creating blue oceans 39% 61% 38% 62% 14% 86% PROFIT IMPACT REVENUE IMPACT BUSINESS LAUNCH Launches within red ocean launches for creating blue oceans
BLUE   OCEAN   STRATEGY ,[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object],[object Object]
BLUE OCEAN STRATEGY ,[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object],[object Object],[object Object],Set of managerial actions and decisions involved in making a major market-creating business offering
VALUE   INNOVATION BUYER VALUE COSTS VALUE INNOVATION
STRATEGY   ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],Blue ocean Red ocean
BLUE OCEAN STRATEGY ,[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object],[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object],[object Object],[object Object],[object Object]
BLUE OCEAN STRATEGY ,[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object],[object Object],[object Object]
BLUE OCEAN STRATEGY ,[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object],[object Object],[object Object],[object Object]
Strategy canvas of the U.S. wine industry in the late 1990s price Use of enological terminology and distinction in wine communication Above-the-line marketing Aging quality Vineyard prestige and legacy Wine range Wine complexity High Low Premium wines Budget wines
BLUE   OCEAN   STRATEGY ,[object Object],[object Object],[object Object]
The four actions framework Eliminate   Factors to eliminate that industry  has taken  For granted Raise   Factors to raise  well Above  industry standard Reduce   Factors to reduce  well below  industry standards Create   Factors to create  that Industry has  never offered A new  value  curve
BLUE   OCEAN   STRATEGY ,[object Object],[object Object],[object Object],[object Object]
The Eliminate-Reduce-Raise-Create Grid Eliminate Enological terminology and distinctions Aging qualities Above-the-line-marketing Raise Price versus budget wines Retail store involvement Reduce Wine complexity Wine range Vineyard prestige Create   Easy drinking Ease of selection Fun and adventure
BLUE OCEAN STRATEGY ,[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object],[object Object],[object Object]
BLUE OCEAN STRATEGY ,[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object],[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object],[object Object],[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
BLUE OCEAN STRATEGY ,[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object],[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object],[object Object],[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
BLUE OCEAN STRATEGY ,[object Object],[object Object]
Steps of visualizing strategy 1.  Visual awakening 2.  Visual exploration 3.  Visual strategy fair 4.  Visual communication ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
BLUE OCEAN STRATEGY ,[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object],[object Object]
Growth potential of portfolios of businesses pioneers migrators settlers today tomorrow
BLUE OCEAN STRATEGY ,[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object],[object Object],[object Object]
BLUE OCEAN STRATEGY ,[object Object],[object Object]
Sequence of blue ocean strategy Buyer utility price cost adoption Commercially   Viable BOI   YES YES YES YES NO - RETHINK NO - RETHINK NO - RETHINK NO - RETHINK
Blue ocean idea (BOI) index Philips CD-i Motorola  iridium DoCoMo i-Mode Japan Utility   Price   Cost   Adoption   - - + - - + - - + - +/- +
BLUE OCEAN STRATEGY ,[object Object],[object Object]
Four organizational hurdles COGNITIVE HURDLE RESOURCE HURDLE MOTIVATIONAL HURDLE POLITICAL HURDLE
BLUE   OCEAN   STRATEGY ,[object Object],[object Object],[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object],[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object],[object Object],[object Object],[object Object]
BLUE   OCEAN   STRATEGY ,[object Object],[object Object],[object Object],[object Object]
BLUE OCEAN STRATEGY ,[object Object],[object Object]
The three E principles of fair process ENGAGEMENT EXPLANATION EXPECTATION CLARITY
How fair process affects people’s attitude and behavior FAIR PROCESS TRUST  &  COMMITMENT VOLUNTARY  COOPERATION EXCEEDS  EXPECTATIONS STRATEGY FORMULATION  PROCESS ATTITUDES BEHAVIOR STRATEGY EXECUTION
Thank you For your patience throughout the presentation
Inspired by ,[object Object],Guy Kawasaki Tom Peters
http://kaizenthecontinuous.wordpress.com Prepared by:

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Blue Ocean Strategy

  • 1. BLUE OCEAN STRATEGY
  • 2. Cirque’s productions have been seen by almost 40 mn people in 90 cities around the world In less than 20 years Cirque du soleil has achieved a level of revenues that took Ringling Bros. and Barnum & Bailey - the global champion of the circus industry- more than 100 years to attain
  • 3. Declining industry & limited potential for growth Strong supplier power on the part of star performers and buyer power Steadily decreasing audiences Increasing sentiments against the use of animals UNATTRACTIVE INDUSTRY
  • 4.
  • 5.
  • 6. Profit & growth consequences of creating blue oceans 39% 61% 38% 62% 14% 86% PROFIT IMPACT REVENUE IMPACT BUSINESS LAUNCH Launches within red ocean launches for creating blue oceans
  • 7.
  • 8.
  • 9.
  • 10.
  • 11.
  • 12.
  • 13.
  • 14. VALUE INNOVATION BUYER VALUE COSTS VALUE INNOVATION
  • 15.
  • 16.
  • 17.
  • 18.
  • 19.
  • 20.
  • 21.
  • 22.
  • 23.
  • 24.
  • 25.
  • 26. Strategy canvas of the U.S. wine industry in the late 1990s price Use of enological terminology and distinction in wine communication Above-the-line marketing Aging quality Vineyard prestige and legacy Wine range Wine complexity High Low Premium wines Budget wines
  • 27.
  • 28. The four actions framework Eliminate Factors to eliminate that industry has taken For granted Raise Factors to raise well Above industry standard Reduce Factors to reduce well below industry standards Create Factors to create that Industry has never offered A new value curve
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  • 30. The Eliminate-Reduce-Raise-Create Grid Eliminate Enological terminology and distinctions Aging qualities Above-the-line-marketing Raise Price versus budget wines Retail store involvement Reduce Wine complexity Wine range Vineyard prestige Create Easy drinking Ease of selection Fun and adventure
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  • 54. Growth potential of portfolios of businesses pioneers migrators settlers today tomorrow
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  • 60. Sequence of blue ocean strategy Buyer utility price cost adoption Commercially Viable BOI YES YES YES YES NO - RETHINK NO - RETHINK NO - RETHINK NO - RETHINK
  • 61. Blue ocean idea (BOI) index Philips CD-i Motorola iridium DoCoMo i-Mode Japan Utility Price Cost Adoption - - + - - + - - + - +/- +
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  • 63. Four organizational hurdles COGNITIVE HURDLE RESOURCE HURDLE MOTIVATIONAL HURDLE POLITICAL HURDLE
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  • 69. The three E principles of fair process ENGAGEMENT EXPLANATION EXPECTATION CLARITY
  • 70. How fair process affects people’s attitude and behavior FAIR PROCESS TRUST & COMMITMENT VOLUNTARY COOPERATION EXCEEDS EXPECTATIONS STRATEGY FORMULATION PROCESS ATTITUDES BEHAVIOR STRATEGY EXECUTION
  • 71. Thank you For your patience throughout the presentation
  • 72.