of 8
8/14/2019 Blueoceanstrategy
1/8
www.blueoceanstrategy.com Kim&Mauborgne
blueoceanstrategy
Gowhereprofitsandgrowthareandwherethecompetitionisnt
8/14/2019 Blueoceanstrategy
2/8
Data:
150
strategic
moves,
more
than
30
industries,over100years(18002000)
Variablesconsidered:
industrial,
organizationalandstrategic
Researchingthe
history
of
blue ocean creation
www.blueoceanstrategy.com Kim&Mauborgne
8/14/2019 Blueoceanstrategy
3/8
Red versus blue
www.blueoceanstrategy.com Kim&Mauborgne
RedOcean Strategy
Compete
in
existing market
space
Beat thecompetition
Exploit existingdemand
Makethevaluecosttradeoff
Alignthewholesystemofacompanysactivitieswithitsstrategicchoiceofdifferentiationorlowcost
BlueOceanStrategy
Create
uncontested market
space
Make thecompetitionirrelevant
Createand
capture
new
demand
Breakthevaluecost tradeoff
Alignthewhole systemofacompanysactivitiesinpursuitofdifferentiation andlowcost
8/14/2019 Blueoceanstrategy
4/8
Sixpaths
to
blue ocean strategy
www.blueoceanstrategy.com Kim&Mauborgne
FromCompeting
Within
ToCreatingAcross
Thesixconventionalboundariesofcompetition
Industry
Strategicgroup
Buyer group
Scopeofproduct orserviceoffering
Functionalemotionalorientationofanindustry
Time
8/14/2019 Blueoceanstrategy
5/8
Strategy canvas of[yellow tail]
www.blueoceanstrategy.com Kim&Mauborgne
High
Low
[yellowtail]
Premiumwines
Budgetwines
8/14/2019 Blueoceanstrategy
6/8
Four actions framework
www.blueoceanstrategy.com Kim&Mauborgne
ANew
ValueCurve
Eliminate
Whichof
factors
that
theindustrytakesfor
grantedshouldbe
eliminated?
ReduceWhichfactorsshould
bereducedwellbelowtheindustrys
standard?
RaiseWhichfactorsshould
beraised wellabovetheindustrys
standard?
Create
Whichfactors
should
becreatedthatthe
industryhasnever
offered?
8/14/2019 Blueoceanstrategy
7/8
Minimizing r isks & maximizing opportunit ies in
formulation & executing blue ocean creation
www.blueoceanstrategy.com Kim&Mauborgne
FormulationPrinciples FormulationRisks
ExecutionPrinciples ExecutionRisks
ReconstructmarketboundariesFocusonthebigpicture,notthenumbersReachbeyondexistingdemandGetthestrategicsequenceright
SearchRiskPlanningRiskScaleRiskBusinessModelRisk
Overcomekey organizationalhurdlesBuildexecutionintostrategy
OrganizationalRiskManagementRisk
8/14/2019 Blueoceanstrategy
8/8www.blueoceanstrategy.com Kim&Mauborgne
blueoceanstrategy
Howtocreateuncontestedmarketspaceand
make
the
competition
irrelevant.