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picture1_Strategy Slides 79336 | Blue Ocean Strategy En


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File: Strategy Slides 79336 | Blue Ocean Strategy En
blue ocean strategy red ocean strategy blue ocean strategy competes on existing markets create a new uncultivated market beat competition make competition irrelevant exploit the existing demand create and capture ...

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                     Blue Ocean Strategy
            Red Ocean Strategy              Blue Ocean Strategy
          Competes on existing markets      Create a new uncultivated 
                                            market
          Beat competition                  Make competition irrelevant
          Exploit the existing demand       Create and capture new 
                                            demand
          Trade-off between value/price     No trade-off between 
                                            value/price
          Adjust all of the company’s       Adjust all of the company’s 
          activities for the sake of        activities for the sake of both 
          either differentiation or low     differentiation and low costs
          costs
            Six ways towards blue ocean 
                                 strategy
                                    Industry
                                Strategic group
                                Purchase group
            From                                         To creating 
            competing     Extent of offer of product or  across
            with                     service
                           The industry’s functional-
                             emotional orientation
                                      Time
      Example of a strategy canvas
      The blue line shows how a blue strategy can separate itself radically 
             from the traditional red strategies. 
                          Four actions framework
                                                         Reduce 
                                                  Which factors should be 
                                                 limited considerably below 
                                                   the industry standard?
                             Eliminate                                               Create 
                                                           A new 
                          Which factors that               value                Which factors should 
                         the industry take for             curve                be created that the 
                          granted should be                                      industry have not 
                              eliminated?                                        thought of before?
                                                           Raise
                                                  Which factors should be 
                                                     raised considerably 
                                                     above the industry 
                                                          standard?
         Risk minimization and opportunity maximization in 
          the formulation and implementation of blue ocean 
                                                  strategy
       Formulation principles                                   Formulation risks
       Recreate market limitations                              Search risk
       Focus on ”the big picture” not on numbers                Planning risk
       Exceed the existing needs                                Scale risk
       Ensure that the strategic order is right                 Business model risk
       Implementation principles                                Implementation risk
       Overcome central organizational resistance               Organizational risk
       Integrate implementation and strategy                    Management risk
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...Blue ocean strategy red competes on existing markets create a new uncultivated market beat competition make irrelevant exploit the demand and capture trade off between value price no adjust all of company s activities for sake both either differentiation or low costs six ways towards industry strategic group purchase from to creating competing extent offer product across with service functional emotional orientation time example canvas line shows how can separate itself radically traditional strategies four actions framework reduce which factors should be limited considerably below standard eliminate that take curve created granted have not eliminated thought before raise raised above risk minimization opportunity maximization in formulation implementation principles risks recreate limitations search focus big picture numbers planning exceed needs scale ensure order is right business model overcome central organizational resistance integrate management...

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