Book review by dipender kumar singh

Master school of management ,meerut(2010-12

 AUTHORS

© JOHN ABBOTT © JOHN ABBOTT

Prof Chan Kim Prof Renee

Mauborgne
Publisher-Harvard Business
School Press
Genre(s)-Business Management
Publication date-2005
Pages-256
Country-United States
Language-English
 Accolades
• Over 2 million copies sold

 Translated into over 41 foreign languages –

a world record
 Taught as the major theory of strategy at
leading business schools
 Gives insights to CEOs, Executives, Heads
of State and Prime Ministers
 Value Innovation

Value innovation is created in the

region where a company’s actions
favorably affect both its cost
structure and its value proposition Costs
to buyers. Cost savings are made
by eliminating and reducing the
factors an industry competes on.
Value Innovation
Buyer value is lifted by raising and
creating elements the industry has
never offered. Over time, costs are
reduced further as scale economies
kick in due to the high sales
Buyer Value
volumes that superior value
generates.
 Red Ocean Strategy
Blue Ocean Strategy
Compete in existing market space. Create uncontested market space.

Beat the competition. Make the competition irrelevant.

Exploit existing demand. Create and capture new demand.

Make the value-cost trade-off. Break the value-cost trade-off.

Align the whole system of a firm’s Align the whole system of a firm’s
activities with its strategic choice of activities in pursuit of differentiation
differentiation or low cost. and low cost.
 The Six Principles of Blue Ocean Strategy

Formulation Principles Risk factor each principle

attenuates
Reconstruct market boundaries Search risk
Focus on the big picture, not the Planning risk
numbers Scale risk
Reach beyond existing demand Business model risk
Get the strategic sequence right
Evaluation principles Risk factor each principle
attenuates
Overcome key organizational Organizational risk
hurdles Management risk
Build execution into strategy
Question 1: Just What Exactly Is Blue Ocean Strategy?

Question 2: What Is The Link Between Value Innovation

And Blue Ocean Strategy?

Question 3: Why Are Red Oceans So Abundant?

Question 4: How Can Question 5: What Is The Question 6: Why The
You Turn Red Oceans Fabric Of Your Emphasis On Innovation
Into Blue? Company’s Success? Today?
 Question 8:
Are There
Really No
Permanently
Great
Companies?

Question 9: Question 10:

Question 7: What Was
Must You Be Seeing Is
Best At The ‘Fantastical’
Anything To
Believing, So
Innovation Of Dr.
Create Blue Who Has Done
Seuss?
Oceans? What Using Blue
Ocean Strategy?

Question 11: How Question 12: Are

You Treading Water
Can You Get
In A Red Ocean Or
Customers To Pay Gliding Freely In A
Well Above Industry Blue Ocean?
Standards?
 Thank

y o u