BLUE OCEAN STRATEGY

Ahmad Zawawi Jamal

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Blue Ocean Strategy

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Blue Ocean Strategy: Tools

W. Chan Kim and Renée Mauborgne (2015) Blue Ocean Strategy, Expanded Edition: How to Create Uncontested Market
Space and Make the Competition Irrelevant Hardcover – January 20, 2015, Harvard Business Review Press
Website: https://www.blueoceanstrategy.com/

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Visualizing Strategy

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Reading the Strategy Canvas – MBA Example

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Reading the Strategy Canvas
Company Type Strategy Canvas Implicit Strategy Implications

Caught in the Red Value Curve Trying to out-do Growth due to

Ocean converges with competitors “luck” or “market”
competitors not strategy
Over-delivery High value across Over-supplying Need to value
without Payback all factors incremental value innovate with
adding factors ERRC grid
Strategic Offers high value Poorly visualized Likely to lose
Contradictions and low value in strategy market share –
competing factors need to revise
Internally Driven Factors are jargon “Inside-out” not Operationally-
Company not customer “Outside-in” driven not
focused strategy customer-driven

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Six Paths Framework

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Six Paths Framework

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Three Tiers of Non-Customers

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Three Tiers of Non-Customers

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Pioneer Migrator Settler Map

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Sequence of Blue Ocean Strategy

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Buyer Utility Map

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The Price Corridor of the Mass

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Four Hurdles to Strategy Execution
COGNITIVE
HURDLE -
Cognitive & Resource Hurdles
Put managers face-to-face wedded to the limit re-organization and
with issues and status quo formulation of strategy
stakeholders and find
ways to communicate

POLITICAL 4 Hurdles
RESOURCE
Identify and HURDLE –
Opposition from
to HURDLE – Focus on key topics –
silence internal Limited
opponents –
powerful vested Strategy Resources
bargain and cooperate
interest with stakeholders
isolate external Execution
opponents

Put the strategy front-and

MOTIVATIONAL centre and frame the
Political & Motivational HURDLE – challenges and
Unmotivated opportunities to map with
Hurdles limit or prevent Staff
strategy execution stakeholder needs and
capabilities

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Tipping Point Leadership
• Change can happen quickly in organisations when a
critical mass of people move towards an idea
• But in any organisation some people have a
disproportionate influence on performance
• Tipping point leadership conserves resources and cuts
time by identifying and leveraging the disproportionate
factors:
• What are the disproportionate positive factors on
the status quo?
• Get “bang-for-buck”
• Motivate key players aggressively
• Overcome politics that block even great strategies

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Fair Process
ENGAGEMENT EXPLANATION EXPECTATION
• Involve stakeholders in • Everyone should now the • Clearly states the new
strategic decisions final decisions and rules of the game
• Ask for input why/how they were • Know the standards
• Allow them to challenge made required and the
you • Knowing the rationale consequences of failure
• Show your respect for builds confidence • Reduces politics and
their views • It also creates a powerful focuses on execution
• Builds trust, commitment feedback loop to enhance
and genuine support for the strategy
the strategy

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