Blue Ocean Strategy

SUBMITTED BY
GROUP 5
ANUJA SHARMA PRATEEK LONARKAR
SHAGUN AGGARWAL SHIVANI RAWAT
TIJEEL KUMAR TARUN VIBHOR JAIN

Overview

Blue ocean

Red ocean

Denotes industries not in existence

Unknown market space

Represents industries in existence

today

Demand is created rather than fought over

Known market space

Ample opportunity for growth.

Industry boundaries are defined

Two ways create blue ocean

1. Give rise to a new industry

Competitive rules of the game are

understood.

2. By altering boundaries of an existing

industry i.e from red ocean

Companies tries to obtain greater

existing demand.

Blue ocean framework

Blue ocean strategy works around the following framework:
1.

Eliminate the factors that do not create an appetite among the customers

2.

Creation of concepts that the industry has never offered

3.

Raising the ideas above the industry standard

The case of Cirque

Eliminat
e

Create

Raise

Star performers
Animal Shows
Aisle concession sales

Theme
Artistic music and dance
Multiple productions with different themes and storyline
An environment of both circus and theatre

Unique venue
High level of audience comfort

PEST Analysis

Political

Economical

Less budget in entertainment by people

Social

Ban on Animals that were used

Circus getting less popular and its share is taken by different

substitutes

Technological

Materials being used are getting cheaper and stronger

Porters 5 force

So, are Red Ocean Strategies

Worthless?
NO!!!
1.A company

must master its traditional markets using conventional strategic planning tools.

.-

It will always be important to swim successfully in the red ocean by out competing rivals. Red oceans will
always matter and will always be a fact of business life.

.-

But to focus on the red ocean is therefore to accept the key constraining factors of war- limited terrain and
the need to beat an enemy to succeed and to deny the distinctive strength of the business world: the capacity
to create new market space that is uncontested.

2. But to sustain high performance, companies must create their own blue oceans, and make the competition
irrelevant! - But blue oceans are largely unconscious.
.a)

no analytic fireworks to guide its creation and implementation,

.
b)

no principles to effectively manage risk,

.
c)

therefore too risky for managers to pursue.

Thank You