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

1. 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

3. Cirque du Soleil Blue Ocean Strategy Creating Uncontested Market Space and Making the Competition Irrelevant

4. Red Ocean Strategy Blue Ocean Strategy

5. 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

6. Ford’s 1908 Model T 1970 The First Mouse CNN 1980 Real-Time News 24/7 2002 Apple’s ipod New Market Space Creating Blue Oceans Is Consistent Across Time Regardless of Industry Continuing Creation of Blue Oceans

7. Impact of Creating Blue Oceans

8. 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

9. Formulating and Executing Blue Oceans

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

11. 3 Things I’ve Learned Blue Oceans aren’t always accepted at first Strategic Framework: The Engelbart Connection 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

12. 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.”

13. Questions?