Blue Ocean Strategy How to Create Uncontested Market Space and Make the Competition Irrelevant

Blue Ocean StrategyHow to Create Uncontested Market Space

and Make the Competition Irrelevant

Rebecca SheranianCalifornia State University Monterey Bay

Dec 11, 2006

By W. Chan Kim & Renee Mauborgne

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Blue Ocean StrategyCirque du Soleil

Creating Uncontested Market Space and Making the Competition Irrelevant

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

Continuing Creation of Blue Oceans

Ford’s 1908 Model T

CNN 1980 Real-Time News 24/7

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2002 Apple’s ipod

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1970 The First Mouse

New Market Space Creating Blue Oceans Is Consistent Across Time

Regardless of Industry

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

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

3 Things I’ve Learned

1. Blue Oceans aren’t always accepted at first

2. Strategic Framework: The Engelbart Connection3. 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

“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.”

Business environment is changing 20th century strategy & management approach is changing

Questions?