194x Filetype PPTX File size 0.30 MB Source: lederindsigt.dk
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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