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blueoceanstrategy

Gowhereprofitsandgrowthareandwherethecompetitionisnt

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Data:

150

strategic

moves,

more

than

30

industries,over100years(18002000)

Variablesconsidered:

industrial,

organizationalandstrategic

Researchingthe

history

of

blue ocean creation

www.blueoceanstrategy.com Kim&Mauborgne

8/14/2019 Blueoceanstrategy

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Red versus blue

www.blueoceanstrategy.com Kim&Mauborgne

RedOcean Strategy

Compete

in

existing market

space

Beat thecompetition

Exploit existingdemand

Makethevaluecosttradeoff

Alignthewholesystemofacompanysactivitieswithitsstrategicchoiceofdifferentiationorlowcost

BlueOceanStrategy

Create

uncontested market

space

Make thecompetitionirrelevant

Createand

capture

new

demand

Breakthevaluecost tradeoff

Alignthewhole systemofacompanysactivitiesinpursuitofdifferentiation andlowcost

8/14/2019 Blueoceanstrategy

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Sixpaths

to

blue ocean strategy

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FromCompeting

Within

ToCreatingAcross

Thesixconventionalboundariesofcompetition

Industry

Strategicgroup

Buyer group

Scopeofproduct orserviceoffering

Functionalemotionalorientationofanindustry

Time

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Strategy canvas of[yellow tail]

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High

Low

[yellowtail]

Premiumwines

Budgetwines

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Four actions framework

www.blueoceanstrategy.com Kim&Mauborgne

ANew

ValueCurve

Eliminate

Whichof

factors

that

theindustrytakesfor

grantedshouldbe

eliminated?

ReduceWhichfactorsshould

bereducedwellbelowtheindustrys

standard?

RaiseWhichfactorsshould

beraised wellabovetheindustrys

standard?

Create

Whichfactors

should

becreatedthatthe

industryhasnever

offered?

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Minimizing r isks & maximizing opportunit ies in

formulation & executing blue ocean creation

www.blueoceanstrategy.com Kim&Mauborgne

FormulationPrinciples FormulationRisks

ExecutionPrinciples ExecutionRisks

ReconstructmarketboundariesFocusonthebigpicture,notthenumbersReachbeyondexistingdemandGetthestrategicsequenceright

SearchRiskPlanningRiskScaleRiskBusinessModelRisk

Overcomekey organizationalhurdlesBuildexecutionintostrategy

OrganizationalRiskManagementRisk

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blueoceanstrategy

Howtocreateuncontestedmarketspaceand

make

the

competition

irrelevant.