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Karthik Krishnamoorthy BUS 240 - eCommerce

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Karthik Krishnamoorthy BUS 240 - eCommerce. Red Ocean Vs Blue Ocean. Creating Blue Ocean Value Innovation. Company’s cost act favorably for both innovators and buyers Cost savings occur by eliminating and reducing factors an industry competes

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Karthik Krishnamoorthy

BUS 240 - eCommerce

creating blue ocean value innovation
Creating Blue Ocean Value Innovation
  • Company’s cost act favorably for both innovators and buyers
  • Cost savings occur by eliminating and reducing factors an industry competes
  • Buyer value is provided by never before offered products
  • Cost is reduced further as scale of economy kicks in





creating blue ocean tools
Creating Blue OceanTools
  • Strategy Canvas
    • diagnostic and action framework for building a compelling strategy
    • X-Y Axis, where X represents factors and Y represents company position
    • E.g Yellow Tail Wine
creating blue ocean tools6
Creating Blue OceanTools
  • Four Action Framework
    • Eliminate, Reduce,Raise and Create
creating blue ocean tools7
Creating Blue OceanTools
    • E.g Yellow Tail Wine
creating blue ocean three characteristics
Creating Blue OceanThree Characteristics

For a good strategy

  • Focus - on the important areas and not on every single factor
  • Divergence - away from the competitors offerings
  • Tagline - has a simple easy to communicate
creating blue ocean six principles
Creating Blue OceanSix Principles

Formulation Principles

Reconstruct Market Boundaries

… overcome believes.

Reach beyond existing Demand

… go for uncontested space.

Get the strategic sequence right

… value [innovation] first.

creating blue ocean six principles10
Creating Blue OceanSix Principles

Buyer utility

Is there exceptional buyer

utility in your business idea?

No  Rethink



Is your price easily accessible to the mass of buyers?

No  Rethink



Can you attain your cost target to profit at your strategic price?

No  Rethink



What are the adoption hurdles in actualizing your business idea?

Are you addressing them up front?

No  Rethink


creating blue ocean six principles11
Creating Blue OceanSix Principles

Execution Principles

  • Overcome key organizational hurdles
    • Cognitive, resource and political hurdles
  • Build execution into strategy
    • Fair process strategy formulation


  • Yellow Tail
  • Southwest
  • Cirque du Soleil
  • Home Depot
thank you
Thank you

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