Implementing Blue Ocean Strategy for Business Success

 
Flynn Gordon wants to start a
business of his own.
He has several years of
experience in the Sales and
Marketing field of electronics
and consumer goods.
Flynn is not sure what kind of business he
should start.
He knows that if he tries to venture into
the field of electronics and consumer
goods, his business would face a lot of
tough competition from the existing
players in the field.
The market space of electronics and
consumer goods is so crowded that in
order for his business to succeed, Flynn
would have to beat the existing
competition and also exploit the existing
demand.
Flynn is in a fix about what to do.
He has several questions going on
in his mind, such as:
Flynn’s ex-boss and a long time friend,
Mark Yardley comes to Flynn’s rescue.
Mark tells Flynn that in order to start a
successful business venture, it is crucial
that Flynn’s business should create a
unique and uncontested market space just
for itself.
In such a market space which is free from
competition, Flynn can be sure that his
business can easily and to a greater extent
surely succeed.
Mark tells Flynn to carefully study and
implement the ‘Blue Ocean Strategy’ for
his business.
Mark tells Flynn that in order to
implement the ‘Blue Ocean Strategy’ he
would have to come up with a business
idea that will create a new uncontested
market space for his business.
The ‘Blue Ocean Strategy’ would help Flynn’s
business to:
Hence, you can understand that in order to
succeed in any business, an organization
and its management should always try to
adopt a strategy such as the ‘Blue Ocean
Strategy’ to rid itself of the tough
competition and create a new
free market space for itself.
Hence, you can understand that in order to
succeed in any business, an organization
and its management should always try to
adopt a strategy such as the ‘Blue Ocean
Strategy’ to rid itself of the tough
competition and create a new
free market space for itself.
 
Explain Who developed the Blue Ocean Strategy
 
Explain What is a Business Universe
 
Differentiate between Blue Ocean and Red Ocean
 
Describe the Importance of Blue Ocean Markets
 
Explain Key Terms Related to Blue Ocean Strategy
 
Describe Ways to Create Blue Oceans
 
Explain Steps to Create a Blue Ocean Strategy
 
List the Blue Ocean Strategy Tools
 
Explain What is Meant by Value Innovation
 
Explain What is Tipping Point Leadership
 
Explain What is the ERRC Grid
 
Explain the Use of the Buyer Utility Map
 
Explain Steps for Strategy Reorientation & Execution
 
List the Core Values to Drive Innovation
 
Describe How to Choose Right Strategic Approach
 
There are two types of distinct space into which the business universe can be
divided:
 
Let us look at each in detail.
 
Red Oceans:
o
‘Red Oceans’ denote all the
organizations and industries that
are already in existence today.
o
Therefore, the ‘Red Oceans’
represent the ‘known market
space’.
 
Let us know look at some of the differences between the blue ocean
strategy versus the red ocean strategy.
 
 
 
It creates a market
space which is
uncontested and
free from any
competition
 
It involves
competing in an
existing market
space
 
It helps make the
competition
irrelevant or have
no effect on his
business’ success
 
It involves beating
the competition
‘Blue Oceans’ are a must and an almost sure
shot way to success because when companies
have to compete in a red ocean market space,
the competition is cut throat and fierce.
Due to such a crowded space, the companies
have to beat the others by reducing their
prices which leads to reduction in profits and
hence a reduction in growth.
Let us look at each in detail.
The following are some of the key terms that you should understand to gain an
understanding of ‘Blue Ocean Strategy’:
 
‘Reconstructionist Strategy’ is
similar to a ‘Blue Ocean
Strategy’.
This strategy involves
increasing demand and
profits by having an
unconventional mindset of
 
creating a new market
  
space which is
  
free from any
 
competition.
 
The following are the four steps that you need to follow to create a ‘Blue
Ocean Strategy:
 
Let us look at each in detail.
 
‘Value Innovation’ is an important tool
of Blue Ocean Strategy that can be used
to create value in the eyes of your
customer for the benefit of your
business.
The primary premise on which this tool
works is that “you can achieve cost
savings by either completely removing
or reducing the factors on which the
industry competes on”.
 
Cognitive Hurdle:
You should overcome the
‘Cognitive Hurdle’ by
placing managers face-to-
face directly with problems
and customers.
You should also find new
and rapid ways of
communicating your
strategies to the interested
parties to avoid any kind of
misunderstandings or
confusion.
The following are the four steps to overcome all the four hurdles leading to
rapid strategy reorientation and execution:
Let us look at each in detail.
 
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Flynn Gordon, an experienced professional in sales and marketing, seeks to start a successful business amidst tough competition in the crowded electronics and consumer goods market. His friend Mark advises him to adopt the Blue Ocean Strategy, creating a unique and uncontested market space. By implementing this strategy, Flynn can differentiate his business and ensure its success by focusing on creating new demand and making competition irrelevant.


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  1. Blue Ocean Strategy Blue Ocean Strategy

  2. Introduction Flynn Gordon wants to start a business of his own. He has several years of experience in the Sales and Marketing field of electronics and consumer goods.

  3. Introduction Flynn is not sure what kind of business he should start. He knows that if he tries to venture into the field of electronics and consumer goods, his business would face a lot of tough competition from the existing players in the field.

  4. Introduction The market space of electronics and consumer goods is so crowded that in order for his business to succeed, Flynn would have to beat the existing competition and also exploit the existing demand.

  5. Introduction Flynn is in a fix about what to do. He has several questions going on in his mind, such as: What business idea/strategy should he use to ensure success? How can he make the competition irrelevant to his business success? How can he create and capture new demand?

  6. Introduction Flynn s ex-boss and a long time friend, Mark Yardley comes to Flynn s rescue. Mark tells Flynn that in order to start a successful business venture, it is crucial that Flynn s business should create a unique and uncontested market space just for itself.

  7. Introduction In such a market space which is free from competition, Flynn can be sure that his business can easily and to a greater extent surely succeed. Mark tells Flynn to carefully study and implement the Blue Ocean Strategy for his business.

  8. Introduction Mark tells Flynn that in order to implement the Blue Ocean Strategy he would have to come up with a business idea that will create a new uncontested market space for his business.

  9. Introduction The Blue Ocean Strategy would help Flynn s business to: Create a market space which is uncontested and free from any competition Help make the competition irrelevant or have no effect on his business success Help target non-customers Create and gain new demand

  10. Introduction Hence, you can understand that in order to succeed in any business, an organization and its management should always try to adopt a strategy such as the Blue Ocean Strategy to rid itself of the tough competition and create a new free market space for itself.

  11. Introduction Hence, you can understand that in order to succeed in any business, an organization and its management should always try to adopt a strategy such as the Blue Ocean Strategy to rid itself of the tough competition and create a new free market space for itself.

  12. Objectives Explain Who developed the Blue Ocean Strategy Explain Who developed the Blue Ocean Strategy Explain What is a Business Universe Explain What is a Business Universe Differentiate between Blue Ocean and Red Ocean Differentiate between Blue Ocean and Red Ocean Describe the Importance of Blue Ocean Markets Describe the Importance of Blue Ocean Markets Explain Key Terms Related to Blue Ocean Strategy Explain Key Terms Related to Blue Ocean Strategy Describe Ways to Create Blue Oceans Describe Ways to Create Blue Oceans Explain Steps to Create a Blue Ocean Strategy Explain Steps to Create a Blue Ocean Strategy List the Blue Ocean Strategy Tools List the Blue Ocean Strategy Tools Explain What is Meant by Value Innovation Explain What is Meant by Value Innovation Explain What is Tipping Point Leadership Explain What is Tipping Point Leadership Explain What is the ERRC Grid Explain What is the ERRC Grid Explain the Use of the Buyer Utility Map Explain the Use of the Buyer Utility Map Explain Steps for Strategy Reorientation & Execution Explain Steps for Strategy Reorientation & Execution Describe How to Choose Right Strategic Approach Describe How to Choose Right Strategic Approach List the Core Values to Drive Innovation List the Core Values to Drive Innovation

  13. Who developed the concept of Blue Ocean Strategy? The concept of Blue Ocean Strategy was developed by W. Chan Kim and Ren e Mauborgne. They first presented the concept of Blue Ocean Strategy in their bestselling book, Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant.

  14. Business Universe There are two types of distinct space into which the business universe can be divided: Red Oceans Blue Oceans Let us look at each in detail.

  15. Red Oceans Red Oceans Red Oceans: o Red Oceans denote all the organizations and industries that are already in existence today. o Therefore, the Red Oceans represent the known market space .

  16. Blue Ocean Strategy versus Red Ocean Strategy Let us know look at some of the differences between the blue ocean strategy versus the red ocean strategy. It involves It creates a market space which is uncontested and free from any competition competing in an existing market space It helps make the competition irrelevant or have no effect on his business success It involves beating the competition

  17. Importance of Blue Ocean Markets Blue Oceans are a must and an almost sure shot way to success because when companies have to compete in a red ocean market space, the competition is cut throat and fierce. Due to such a crowded space, the companies have to beat the others by reducing their prices which leads to reduction in profits and hence a reduction in growth.

  18. Reconstructionist Strategy The following are some of the key terms that you should understand to gain an understanding of Blue Ocean Strategy : Reconstructionist Strategy is similar to a Blue Ocean Strategy . 1 Blue Oceans 2 Red Oceans This strategy involves increasing demand and profits by having an unconventional mindset of creating a new market space which is free from any competition. Structuralist Strategy 3 Reconstructionist Strategy 4 4 Reconstructionist Strategy 5 Value Innovation Let us look at each in detail.

  19. Steps to Create a Blue Ocean Strategy The following are the four steps that you need to follow to create a Blue Ocean Strategy: Step 1: Create Uncontested Market Space Step 2: Focus on the Big Picture Step 3: Reach Beyond Existing Demand Step 4: Focus on Getting the Strategic Sequence Right Let us look at each in detail.

  20. Value Innovation Value Innovation Value Innovation is an important tool of Blue Ocean Strategy that can be used to create value in the eyes of your customer for the benefit of your business. The primary premise on which this tool works is that you can achieve cost savings by either completely removing or reducing the factors on which the industry competes on .

  21. Cognitive Hurdle The following are the four steps to overcome all the four hurdles leading to rapid strategy reorientation and execution: Cognitive Hurdle: You should overcome the Cognitive Hurdle by placing managers face-to- face directly with problems and customers. You should also find new and rapid ways of communicating your strategies to the interested parties to avoid any kind of misunderstandings or confusion. Let us look at each in detail.

  22. What Is the Right Strategic Approach for You? So, what kind of a strategic approach should you use? You should carefully consider the following three factors to find the right strategic approach for your company: The structural conditions in which the company operates The resources and capabilities of the company The company s strategic mind-set

  23. ManagementStudyGuide.com This is a DEMO Course On Blue Ocean Strategy Register Today and Get Access to Unlimited Courses. What Do you Get: 1. Access the Courses Online. 2. Download Powerpoint Presentation for Each Course. 3. Get Certificates.

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