SSE Kim Blue ocean Group 7

1. Blue Ocean by W. Chan Kim and Renée Mauborgne Harvard Business Review 2004 Carolina Appelqvist - 40090 Helena Brodbeck - 40093 Mikael Meijer - 40079 Riikka Murto - 40097

2. AGENDA Executive summary Red ocean strategy Blue ocean strategy Nintendo WII

3. EXECUTIVE SUMMARY Red Oceans represent the industries existing today, which are characterized by competition about existing demand. A blue ocean strategy creates new demand and market space, which makes competition irrelevant. It also lacks the trade-off between cost and value, making it possible to pursue differentiation and low cost simultaneously. This will be demonstrated by the example of Nintendo Wii.

4. Strategic analysis Environment Organization Industry Internal analysis RBV Model Inside->Out External analysis I/O Model Outside->In

8. RED OCEAN VERSUS BLUE OCEAN Compete in existing market space Create uncontested market space Beat the competition Make the competition irrelevant Exploit existing demand Create and capture new demand Make the value/cost trade-off Break the value/cost trade-off Align the whole system of a company's activities with its strategy choice of differentiation or low cost Align the whole system of a company's activities in pursuit of differentiation and low cost.

9. NINTENDO WII Industry situation before Wii: different gaming consoles were fighting for market share Wii stretched the boundaries of the industry by combining video gaming with doing sports. It created a blue ocean by both value and technology pioneering.

10. NINTENDO WII Source: http://www.valueinnovation.net/2008/04/nintendo-wii-blue-ocean-strategy.html

11. 'Red and blue have always coexisted and always will' (Kim & Mauborgne 2004)

12. CIRQUE