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?