Blue Ocean Strategy with some International & Indian case studies

1. about winning without fighting
Blue Ocean Strategy

2. to fight and conquer in all your
battles is not supreme excellence;
supreme excellence consists in
breaking the enemy's resistance
without fighting
Master Sun Tzu in ‘ Art of War’

3. Conventional Strategy
DIFFERENTIATION OR LOW COST
Blue Ocean talks about Value Innovation
DIFFERENTIATION AND LOW COST
BLUE OCEAN STRATEGY

4. Value Innovation
• Region where a company’s
actions favourably affect both
its cost structure and its value
proportion to buyers
– Cost savings by eliminating
and reducing the factors an
industry competes on
– Buyer values is lifted by
raising & creating elements Costs
the industry has never
offered
– Over time, costs are
reduced further as scale Value
economies kick in Innovation
Buyer Value

5. Comparison of Red vs. Blue

6. How to find new Value Curve
Four Actions Framework
• Eliminate
– Which of the factors that the industry takes for granted should be
eliminated?
• Reduce
– Which factors should be reduced well below the industry's
standard?
• Raise
– Which factors should be raised well above the industry's
standard?
• Create
– Which factors should be created that the industry has never
offered?

7. Case Study 1 :
US Wine Industry Pre-Yellow Tail

8. Case Study 1:
US Wine Industry Post Yellow Tail

9. Case Study 1 :
Value Curve for Yellow Tail
• Eliminate
– Enological Terminology
– Above the Line
– Focus on Aging Quality
• Reduce
– Vineyard Prestige & Legacy
– Wine Complexity
– Wine Range
• Raise
– Price as compared to Budget
– Retail Store Environment
• Create
– Easy Drinking
– Ease of Selection
– Fun & Adventure

10. Case Study 2 :
US Women Exercise Pre Curves

11. Case Study 2:
US Women Exercise Post Curves

12. Case Study 2 :
Value Curve for Curves
• Reduce
– When compared to traditional gym
• Price
• Amenities
• Equipment
• Workout time
• Availability of instructors
• Raise
– Environment encouraging discipline & motivation
– Same sex non-threatening
• Create
– Womanly fun atmosphere

13. Case Study 3 :
Cricket Before IPL

14. Case Study 3:
Cricket After IPL

15. Case Study 3 :
Value Curve for IPL
• Reduce
– Spectator Time Invested (Competes with Movie/Football)
– Emphasis on Classic Techniques (Batting/Bowling)
– Emphasis on Patience, Perseverance
• Raise
– Emphasis on Athleticism
– Pace of the Game
– Entertainment with Bollywood, Cheerleaders etc.
– Certainty of Result
• Create
– City Loyalty
– Welcome to Dummies

16. Is Tata Nano Really Creating a Blue
Ocean ?

17. skillful leader subdues the enemy's
troops without any fighting; he
captures their cities without laying
siege to them; he overthrows their
kingdom without lengthy operations
in the field
Master Sun Tzu in ‘ Art of War’

18. Reference : Blue Ocean Strategy By
W. Chan Kim, Renée Mauborgne