BLUE OCEAN

Blue Ocean Strategy How to Create Uncontested Market Space and Make the Competition Irrelevant By W. Chan Kim & Renee Mauborgne

Rebecca Sheranian California State University Monterey Bay Dec 11, 2006

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Creating Uncontested Market Space and Making the Competition Irrelevant

Cirque du Soleil Blue Ocean Strategy

Red Ocean Strategy

Blue Ocean Strategy

Summary of Blue Ocean Strategy

 New Market Space  Continuing Creation of Blue Oceans  Impact of Creating Blue Oceans  Rising Imperative of Creating Blue Oceans  From Company and Industry to Strategic Move  Value Innovation  Formulating and Executing Blue Oceans

New Market Space Creating Blue Oceans Is Consistent Across Time Regardless of Industry

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Ford’s 1908 Model T

1970 The First Mouse

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CNN 1980 Real-Time News 24/7

2002 Apple’s ipod

Continuing Creation of Blue Oceans

Impact of Creating Blue Oceans

Rising Imperative of Creating Blue Oceans

Driving forces include:  Technological advances & improved industrial productivity  Unprecedented array of products and services available  Supply exceeds demand  Globalization, niche markets and monopolies disappear  20th century strategy and management approach waning

Formulating and Executing Blue Oceans

From Company and Industry to Strategic Move Value Innovation, Blue Oceans Cornerstone

3 Things I’ve Learned 1. Blue Oceans aren’t always accepted at first 2. Strategic Framework: The Engelbart Connection 3. Blue Oceans can be profitable

What I Disagree With That there exists a strategic framework for Blue Oceans. By nature they do not conform to one framework

How Relate to MSMIT 

Business environment is changing

 20th century strategy & management approach is changing

“As red oceans become increasingly bloody, management will need to be more concerned with blue oceans than the current cohort of managers is accustomed to.”

Questions?