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Blue Ocean Strategy

Blue Ocean Strategy. How to create uncontested market space and make the competition irrelevant. Katharina BOST 12/06/2006. About the Founders : Chan & Renee. W. Chan Kim The Boston Consulting Group Bruce D. Henderson Chair Professor of Strategy and

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Blue Ocean Strategy

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  1. Blue Ocean Strategy How to create uncontested market space and make the competition irrelevant Katharina BOST 12/06/2006

  2. About the Founders: Chan & Renee • W. Chan Kim • The Boston Consulting Group • Bruce D. Henderson Chair • Professor of Strategy and • International Management • Renée Mauborgne • The INSEAD Distinguished • Fellow and Professor of Strategy • and International Management

  3. Two worlds …

  4. Two worlds …

  5. The rising Imperative of Creating Blue Oceans • supply exceeds demand • globalization • accelerated commoditization of products and services • increasing price wars • shrinking profit margins • brands are becoming more similar • select based on price • ...

  6. BOS Logic: The Core Principles Reconstruct Market Boundaries … overcome believes. Reach beyond existing Demand … go for uncontested space. VI COST VI Get the strategic sequence right … value [innovation] first. VALUE

  7. BOS Logic: Reconstruct market boundaries Head-to-Head Competition Boundaries of Competition Creating New Market Space

  8. BOS Logic: The Core Principles Reconstruct Market Boundaries … overcome believes. Reach beyond existing Demand … go for uncontested space. VI COST VI Get the strategic sequence right … value [innovation] first. VALUE

  9. BOS Logic: Reach beyond existing demand Noncostumer Core Customer Soon-to-be-NC Refusing Customer

  10. BOS Logic: The Core Principles Reconstruct Market Boundaries … overcome believes. Reach beyond existing Demand … go for uncontested space. VI COST VI Get the strategic sequence right … value [innovation] first. VALUE

  11. BOS Logic: Get the Strategic Sequence right Buyer utility Is there exceptional buyer utility in your business idea? No  Rethink YES Price Is your price easily accessible to the mass of buyers? No  Rethink YES Cost Can you attain your cost target to profit at your strategic price? No  Rethink YES Adoption What are the adoption hurdles in actualizing your business idea? Are you addressing them up front? No  Rethink YES A commercially viable Blue Ocean Strategy

  12. The case of Accor's Formule 1 The value curve of Formule 1 in the French Low Budget Hotel Industry

  13. References • W. Chan Kim, Renée Mauborgne, Blue Ocean Strategy, 2005, • Havard Business School Press. • http://www.blueoceanstrategy.com • HANDELSBLATT, Donnerstag, 06. Oktober 2005, • Mit Nichtkunden neue Märkte finden. • http://www.hotelformule1.com

  14. Thank you for your attention!!!

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