MGM 4183 ENTERPRENEURSHIP TITLE OF GROUP 4: BLUE OCEAN STRATEGY

1. MGM 4183 ENTERPRENEURSHIP TITLE OF GROUP 4: BLUE OCEAN STRATEGY BOO CHIA LIAN 138990 TAN LEE CHEAH 138912 LEONG HUI CHING 138620 TAN HUI LING 138619 RANJINI A/P THANGAVEL 137915 TANASEELAN A/L V.MANOGARAN 137802 RUMINAH BINTI SUBAHE 137561

2. OUTLINE • WHAT IS BOS • AWARD • BOS IN THE NEWS • BOS TOOLS • LANGUANGES • BLUE OCEAN vs RED OCEAN • CONCLUSION

3. WHAT IS BOS? • Nine Key Points of Blue Ocean Strategy (BOS) • BOS is the result of a decade-long study of 150 strategic moves spanning more than 30 industries over 100 years (1880-2000). • BOS is the simultaneous pursuit of differentiation and low cost. • The aim of BOS is not to out-perform the competition in the existing industry, but to create new market space or a blue ocean, thereby making the competition irrelevant. • BOS offers a set of methodologies and tools to create new market space.

4. While innovation has been seen as a random/experimental process where entrepreneurs and spin-offs are the primary drivers – as argued by Schumpeter and his followers – BOS offers systematic and reproducible methodologies and processes in pursuit of innovation by both new and existing firms. • BOS frameworks and tools include: strategy canvas, value curve, four actions framework, six paths, buyer experience cycle, buyer utility map, and blue ocean idea index. • These frameworks and tools are designed to be visual in order to not only effectively build the collective wisdom of the company but also to effectively execute through easy communication. • BOS covers both strategy formulation and strategy execution. • The three key conceptual building blocks of BOS are: value innovation, tipping point leadership, and fair process.

5. AWARD

6. BOS IN THE NEWS • Embracing Change Vital for Academic ExcellenceFollowing the recent promotion of UniversitiSain Malaysia (USM) to Apex university status, vice-chancellor Professor Dzulkifli describes how Blue Ocean Strategy has transformed the education system in Malaysia and brought value innovation to the learning process. New Strait Times, Malaysia, September 2008, May 2008 • Blue Ocean Strategy rated #1 Management Practice in ChinaBlue Ocean Strategy has been voted #1 in the annual Top 10 Management Practices survey carried out by Chief Executive China, the largest-circulation management magazine in mainland China. More than 1,200 senior mainland China managers responded to the survey, placing Blue Ocean Strategy first in this years results. Chief Executive China, August 2008.

7. Cont… • Blue Ocean Planning: Creative, Visionary and Fun Frank Dougherty, president and CEO of Health Employees Federal Credit Union, explains how the successful implementation of Blue Ocean Strategy has transformed their strategic planning into an interactive, innovative and forward-thinking process.Credit Union Directors Newsletter, US, Summer 2008 • This article, featured in Canadas largest national newspaper, considers how the successful implementation of Blue Ocean Strategy in reinventing the circus industry could also be applied to Canadian politics. Globe and Mail, Canada, August 2008

8. B0S TOOLSThe Strategy Canvas central diagnostic and action framework for building a compelling blue ocean strategy Purposes captures the current state of play in the known market space begin by reorienting strategic focus from competitors to alternatives, and from customers to noncustomers of the industry

9. The Eliminate-Reduce-Raise-Create Grid  • Which of the factors that the industry takes for granted should be eliminated? • Which factors should be reduced well below the industry’s standard? • Which factors should be raised well above the industry’s standard? • Which factors should be created that the industry has never offered?

10. Benefits Of ERCCG • pushes them to pursue differentiation and low cost to break the value-cost trade-off • flags companies that are focused only on raising and creating and thereby lifting their cost structure and often over engineering products and services • easily understood by managers at any level, creating a high level of engagement in its application • drives companies to robustly scrutinize every factor the industry competes on

11. Six Principles of Blue Ocean Strategy • Six Key Risk CompaniesFormulation Principles • Search risk 1) Reconstruct market boundaries • Planning risk 2) Focus on the big picture, not the • Scope risk numbers • Business model risk 3) Reach beyond existing demand • 4) Get the strategic sequence right • Execution Principles • Organizational risk 5) Overcome key organizational • Management riskhurdles • 6) Build execution into strategy

12. Principle 1: Reconstruct market boundaries Principle 2:Focus on the big picture, not the numbers • Alternative industries • Strategic group • within industry • complementary product • and service offerings • Redefines the industry • buyer group The Four Steps of Visualizing Strategy: • Visual Awakening • Visual Exploration • Visual Strategy Fair • Visual Communication

13. Principle 3: Reach Beyond Existing Demand Principle 4: Get The Strategic Sequence Right 675 3rd tierUnexplored Buyer Utility Price Cost 2nd tier 3 Tiers of Non-customers Refusing A commercially variable Blue Ocean Strategy Adoption 1st tier Your market

14. Execution Principle Principle 5: Overcome key organizational hurdles Cognitive Hurdle Resource Hurdle • Redistribute to hot spots • Redirect resources from your cold spots • Engage in horse trading • Ride the" Electric Sewer” • Meet with Disgruntled Customers Political Hurdle Motivational Hurdle • Secure an adviser on your top management team • Leverage your angels and silence your devils • Atomize to get the organization to change itself • key influencers • •

15. Principle 6: Build Execution Into Strategy Fair Process Of Strategy Strategy Formulation Process Fair Process – Engagement, Explanation, Expectation clarity Attitudes Trust and Commitment – “I feel my opinion counts” Behavior Voluntary Cooperation – “I’ll go beyond the call of duty” Strategy Execution Exceeds Expectation – self initiated

16. 41 LANGUAGES • ARABIC • BULGARIAN • CHINESE • CROATION • CZECH • DANISH • DUTCH • ENGLISH • ESTONIAFARSI • FINNISH • FRENCH • GERMAN • GREEK • HEBREW • HUNGARIAN • INDONESIA • ITALIAN • JAPANESE • KOREAN • LITHUANIAN • NORWEGIAN • POLISH • PORTUGUESE • PORTUGUESE L.A • ROMANIAN • RUSSIAN • SERBIAN • SLOVENE • SPANISH • SPANISH L.A • TAIWAN • THAI • TURKISH • VIETNAMESE • Coming soon….. • ICELANDIC • LATVIAN • MALAY • MONGOLIAN • UKRAINIAN

17. Blue Ocean versus Red Ocean Strategies

19. CONCLUSION • The Blue Ocean Strategy is a new term but it has been there for along time. • The strategy focus in innovative value for the next customer and so on. • It help a company to grow non-stop and create a new market by time. • The tool used in the strategy are not new but its been used before

20. Only overview of automobiles, computers and movie theaters was used. • The BOS was only talking about the winning story and no control group was used