A.d Presentatn

8/2/2019 A.d Presentatn

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PRESENTED BY :

TANUSHREE RAY,

MINAKSHEE

KUMARI,

PRAYAG YADAV,

SANTOSH SAH, &

ROHIT KUMAR

S

T

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T
http://www.blueoceanstrategy.com/downloads/jacket.pdf


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The Book and its Authors

ACCOLADES..

Over 2 million copies sold

Translated into over 41

foreign languagesa worldrecord

Taught as the major theory

of strategy at leading

business schools

Gives insights to CEOs,

Executives, Heads of State

and Prime Ministers

Prof Renee

Mauborgne

Prof Chan Kim


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How to create uncontested market

space and make competition

irrelevant..

The Theme of the Book


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Circue du SoleilCreating Uncontested Market Space and

Making the Competition Irrelevant


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ARED OCEAN?


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Red Ocean Strategy

Blue Ocean Strategy

How is it Different from

a Red Ocean?

Compete in existing market

space.

Beat the competition.

Exploit existing demand.

Make the value-cost tradeoff.

Align the whole system of a

firms activities with its strategic

choice of differentiation or low

cost.

Create uncontested marketspace.

Make the competition irrelevant

Create and capture new

demand

Break the value-cost trade-off

Align the whole system of a

firms activities in pursuit of

differentiation and low cost


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Why opt for Blue Ocean?

Supply exceeds demand.

Globalization .

Increasing price wars.

Shrinking profit margins.

Brands are becoming more similar.

Select based on price.


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BOS Logic: The Core Principles

Reconstruct Market

Boundaries

overcome believes.

Reach beyond

existing Demand

go for uncontested space.

Get the strategic

sequence right

value [innovation] first.

VIVI

COST

VALUE


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BOS Logic: Reconstruct market boundaries

IndustryFocuses on rivals within itsindustry

Strategic GroupFocuses on competitive position

within strategic group

Buyer GroupFocuses on better serving thebuyer group

Scope of Product andService Offerings

Focuses on maximizing the valueof product and service offerings

within the bounds of its industry

Functional-emotionalOrientation of an

Industry

Focuses on improving price-performance with the functional-emotional orientation of thisindustry

Time/Trends Focuses on adapting to externaltrends as they occur

Looks across alternativeindustries

Looks across strategic groupswithin its industry

Redefines the buyer group of theindustry

Looks across to complementaryproduct and service offerings thatgo beyond the bounds of itsindustry

Rethinks the functional-emotionalorientation of its industry

Participation in shaping external

trends over time

Boundaries of

Competition

Head-to-Head

Competition

Creating

New Market Space


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1. KBC Star Plus 2130-2200 5.62. KBC Star Plus 2100-2130 4.93. Kahaani Ghar Ghar Kii Star Plus 2200-2230 4.74. Kyunki Saas Bhi Kabhi Bahu Thi Star Plus 2230-2300 4.55. Kasautii Zindagii Kay Star Plus 2030-2100 3.76. Saat Phere Zee TV 2130-2200 2.97. Kasamh Se Zee TV 2100-2130 2.68. Kahiin To Hoga Star Plus 2300-2330 2.49. Ghar Ki Lakshmi Betiyann Zee TV 2200-2230 2.210. Banoo Mein Teri Dulhann Zee TV 2000-2030 2.111. Maayka Zee TV 2030-2100 1.912. Karam Apnaa Apnaa Star Plus 2000-2030 1.6

13. Kumkum

Pyara Sa Bandhan Star Plus 1300-1330 1.614. Bhabhi Star Plus 1330-1400 1.515. Sinndoor Tere Naam Ka Zee TV 1930-2000 1.516. Woh Rahne Waali Mehlon Ki Sahara One 2100-2130 1.417. Mamta Zee TV 1900-1930 1.218. Kyunki Saas Bhi Kabhi Bahu Thi Star Plus 1500-1530 1.219. Jabb Love Hua Zee TV 2230-2300 1.120. Saarrthi Star Plus 1430-1500 1.1


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Reconstruct Market

Boundaries

overcome believes.

Reach beyond

existing Demand


Get the strategic

sequence right


VIVI

COST

VALUE


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BOS Logic: Reach beyond existing demand

Core Customer Noncostumer

Soon-to-be-NC Refusing Customer


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Fords 1908 Model T

CNN 1980

Real-Time News 24/7 2002 Apples ipod

1970 The First Mouse


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Reconstruct Market

Boundaries

overcome believes.

Reach beyond

existing Demand


Get the strategic

sequence right


VIVI

COST

VALUE


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BOS Logic: Get the Strategic Sequence right

Buyer utility

Is there exceptional buyer

utility in your business idea?

Adoption

What are the adoption hurdles in

actualizing your business idea?

Are you addressing them up front?

Price

Is your price easily accessible to the

mass of buyers?

Cost

Can you attain your cost target to

profit at your strategic price?

A commercially viable Blue Ocean Strategy

YES

YES

YES

YES

No Rethink

No Rethink

No Rethink

No Rethink


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Buyer Utility MapThe buyer utility map helps managers look at this issue from the right perspective. It

outlines all the levers companies can pull to deliver exceptional utility to buyers aswell as the various experiences buyers can have with a product or service.

1.

Purchase

2.

Delivery

3.

Use

4.

Supplements

5.

Maintenance

6.

Disposal

Customer Productivity

Simplicity

Convenience

Risk

Fun and

Image

Environmental friendliness

The Six Stages of the Buyer Experience Cycle

TheSixUtilityLevers


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Buyer Experience CycleA buyers experience can usually be broken into a cycle of six stages, running

more or less sequentially from purchase to disposal. Each stage encompasses awide variety of specific experiences. At each stage, managers can ask a set of

questions to gauge the quality of buyers experience.

Purchase Delivery Use Supplements Maintenance Disposal

How long does it

take to find theproduct you need?

Is the place of

purchase attractive

and accessible?

How secure is the

transaction

environment?

How rapidly can

you make a

purchase?

How long does

it take to get theproduct

delivered?

How difficult is

it to unpack and

install the new

product?

Do buyers have

to arrangedelivery

themselves? If

yes, how costly

and difficult is

this?

Does the product

require training orexpert assistance?

Is the product easy to

store when not in use?

How effective are the

products features and

functions?

Does the product orservice deliver far more

power or options than

required by the average

user? Is in overcharged

with bells and whistles?

Do you need other

products and servicesto make this product

work?

If so, how costly are

they?

How much time do

they take?

How easy are they toobtain?

Does the product

require externalmaintenance?

How easy is it to

maintain and upgrade

the product?

How costly is

maintenance?

Does use of the

product createwaste items?

How easy is it to

dispose of the

product?

Are there legal or

environmental

issues in

disposing of theproduct safely?

How costly is

disposal?


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The Six Principles of

Blue Ocean Strategy Path 1- Look across

alternative industry

Path 2- Looking across

strategic groups within

industry

Path 3- Look Across theChain of Buyers

Path 4- Look Across

Complementary Product

and Service Offerings

Path 5- Look Across

Functional or Emotional

Appeal to Buyers

Path 6- Look Across Time


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What factors should

be eliminated that

the industry has

taken for granted?

Eliminate

What factors should

be reduced well

below the industry

standard?

Reduce

What factors should

be created that the

industry has never

offered?

Create

What factors shouldbe raised wellbeyond

the industry

standard?

Raise

Four Actions to create a BlueOcean


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ThankYou

???

Please..

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