Blue Ocean strategy

2. UNIVERSITY OF KARACHI
KARACHI UNIVERSITY BUSINESS SCHOOL
MBA Banking & Finance 2014
Semester II

3. BLUE OCEAN
STREATEGY

4. BLUE OCEAN
Company create new market

5. RED OCEAN
Companies compete for customers

6. BLUE OCEAN
Blue ocean represent all industries, products,
and product features.
Define untapped market space
Create new customer demand
Provide opportunity for rapid growth and high
profit

7. BLUE OCEAN STRATEGY
Provides frameworks and analysis for the
systematic pursuit and creation of blue
ocean product and market.

8. BLUE OCEAN V.S RED OCEAN
Blue Ocean Strategy
 Create uncontested market
space
 Make the competition
irrelevant
 Differentiation and low cost
 Value innovation
 Attract noncustomers
 Create and capture new
demand
Red Ocean Strategy
 Compete in existing
market space
 Beat the competition
 Differentiation or low
cost
 Competitive advantage
 Segment existing
customer
 Exploit existing demand

9. IMPORTANCE OF BLUE
OCEAN STRATEGY
The importance of the Blue Ocean Strategy
is that it allows a business to sell its
products with little or no competition
from other firms. This strategy is useful
for a new business that does not have a
lot of money available for advertising
and does not want to sell its products in a
market where other companies have
already established strong brands.