Blue Ocean Strategy

1. Blue Ocean Strategy Chapter 3: Reconstruct Market Boundaries Group 4

2. 6 Paths Framework • Look across: • Alternative Industries • Strategic Groups • Chain of Buyers • Complementary Product Offerings • Functional/Emotional Appeal • Time

3. Path 1: Alternative Industries • Compete with alternative products/services

4. Red Bull Example VS.

5. Path 2: Strategic Groups in Industries • Unlock blue oceans • Strategic groups: companies within industries

6. Red Bull Example • Red Bull Cola

7. Path 3: Chain of Buyers • Industries tend to focus on one group • Retailers • Purchasers • Consumers • Can create blue ocean by switching the norm. • Novo Nordisk

8. Path 4:Complimentary Product Offerings • Products value are affected by other products that are outside the industry focus. • Movie Theaters • Buses • 5 Hour Energy vs. Red Bull Energy Shots

9. Path 5:Look Across Functional or Emotional Appeal to Buyers • Functional and emotional appeals are embedded • Functional- compete on price and function • Emotional- compete on feelings of products/services • Opportunity for Blue Ocean

10. Functional and Emotional Appeal • How separate from a functional red ocean? • Example: Starbucks and Cemex • How to separate from a emotional red ocean? • Example: QB House

11. Red Bull’s Emotional Appeal • Blue Ocean • Brand idea • Lifestyle • Sports • Nightlife • Youth

12. Path 6: Look Across Time • External trends affect companies • Most act passively and adapt incrementally • Trends that have affected companies • Example: internet and protecting the environment.

13. Look Across Time • Opportunity for Blue Oceans • Future Telling? • Systematic Approach • Decisive • Irreversible • Clear Trajectory • Example: Apple and Sex and the City

14. Red Bull’s Look Across Time • Social Media Explosion • Cohesive with brand image and target market • Facebook • 22 million “likes” • Twitter • 729,000 followers