Blue Ocean Strategy

Prepared by Mohamed Fahmy Alia Siyam Mohamed Saleh Dalia Elgabarty

Supervision Dr. Raghda Elebrashi

Content
Introduction

Red and Blue Structure

Blue Oceans Creation Impact of Technological Advancement Blue Ocean Strategy Aspects Profits and growth of blue ocean creations Characteristics of Blue Oceans Differentiation and low cost Blue Oceans versus Red Oceans

Introduction
Business Universe

Blue Ocean

Red Ocean

Red Ocean
Industry Boundaries

Competitors

Market Space
Understood Competition Rules
Products Commodities

Competitors

Growth

Profits

Blue Ocean
Industry Boundaries

Unknown Market Space

Industry Boundaries

Unaffected by Competition

Rapid Growth

Profitable Opportunity

Blue Ocean Creation

1
Rise New Industry

Red Ocean

Blue Ocean

Point of Discussion

Recent example for red ocean and blue ocean

Convert red ocean to blue ocean

Impact of Technological Advancement

Improve Industry Productivity

Introduce New Products and Services

Remove Trade Boundaries

Global Information

Eliminate Monopoly

Disappear Niche Markets

Blue Ocean Strategy Aspects

Find and develop markets where there is little or no competition.

Utilize and protect current blue oceans

Profit and Growth of Blue Ocean Creations

New ventures, line extension and line improvements Creating new markets

Business

86%

14%

Revenues

62%

38%

Profits

39%

61%

0%

20%

40%

60%

80%

100%

Point of Discussion

Characteristics Strategy

of

Blue

Ocean

Benchmarking in Blue Ocean Strategy versus Red Ocean Strategy

Characteristics of Blue Oceans

1. Blue oceans does not play by traditional business rules. 2. Never use competition as a benchmark. 3. Creating a jump in value for customers and company 4. No trade off between value and cost

Differentiation and Low Cost

Cost

Blue Ocean
Customer Value

Blue Ocean Vs Red Ocean

Blue Ocean Strategy

Create unchallenged markets Make the competition irrelevant Create and capture new demand Break the value/cost trade off

Red Ocean Strategy

Compete in exiting market space Beat the competition Exploit existing demand Make the value/cost trade off

Point of Discussion

Is your company Blue or Red ? If its Blue how do you protect it or if its Red how do you convert it?

THANKS