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Blue Ocean Strate
Blue Ocean Strate
Go where profits and growth are –
and where the competition isn’t
www.blueoceanstrategy.com © Kim & Mauborgne
Researching the history of
blue ocean creation
•Data: 150 strategic moves, more than 30
industries, over 100 years (1800‐2000)
• Variables considered: industrial,
organizational and strategic
www.blueoceanstrategy.com © Kim & Mauborgne
Red versus blue
www.blueoceanstrategy.com © Kim & Mauborgne
Six paths to
blue ocean strategy
Industry
Strategic group
From
Buyer group To Creating
Competing
Across
Within Scope of product or service offering
Functional‐emotional
orientation of an industry
Time
The six conventional boundaries of competition
www.blueoceanstrategy.com © Kim & Mauborgne
Strategy canvas of [yellow tail]
High
Premium wines
[yellow tail]
Budget wines
Low
www.blueoceanstrategy.com © Kim & Mauborgne
Four actions framework
Reduce
Which factors should
be reduced well below
the industry’s
standard?
Eliminate Create
Which of factors that A New Which factors should
the industry takes for Value be created that the
granted should be industry has never
eliminated? Curve
offered?
Raise
Which factors should
be raised well above
the industry’s
standard?
www.blueoceanstrategy.com © Kim & Mauborgne
Minimizing risks & maximizing opportunities in
formulation & executing blue ocean creation
Formulation Principles Formulation Risks
Reconstruct market boundaries Search Risk
Focus on the big picture, not the numbers Planning Risk
Reach beyond existing demand Scale Risk
Get the strategic sequence right Business Model Risk
Execution Principles Execution Risks
Build execution into strategy Management Risk
www.blueoceanstrategy.com © Kim & Mauborgne
blue ocean strategy ®
How to create uncontested market space and
make the competition irrelevant.
www.blueoceanstrategy.com © Kim & Mauborgne