Blue Ocean Strategy

How to Create Uncontested Market Space

and Make the Competition Irrelevant
By
W. Chan Kim & Renee Mauborgne

Rebecca Sheranian
California State University Monterey Bay
Dec 11, 2006

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Creating Uncontested Market Space and

Making the Competition Irrelevant

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Blue Ocean Strategy

Red Ocean Strategy

Blue Ocean Strategy

Summary of Blue Ocean Strategy

New Market Space
Continuing Creation of Blue Oceans
Impact of Creating Blue Oceans
Rising Imperative of Creating Blue Oceans
From Company and Industry to Strategic Move
Value Innovation
Formulating and Executing Blue Oceans

New Market Space

Creating Blue Oceans Is Consistent Across Time
Regardless of Industry

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Continuing Creation of Blue Oceans

Impact of Creating Blue Oceans

Rising Imperative of Creating Blue Oceans

Driving forces include:

Technological advances & improved industrial productivity
Unprecedented array of products and services available
Supply exceeds demand
Globalization, niche markets and monopolies disappear
20th century strategy and management approach waning

Formulating and Executing Blue Oceans

From Company and Industry to Strategic Move

Value Innovation, Blue Oceans Cornerstone

3 Things Ive Learned

1. Blue Oceans arent always accepted at first
2. Strategic Framework: The Engelbart Connection
3. Blue Oceans can be profitable

What I Disagree With

That there exists a strategic framework for Blue
Oceans. By nature they do not conform to one framework

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Business environment is changing

20th century strategy & management approach is changing

As red oceans become increasingly bloody,

management will need to be more concerned with
blue oceans than the current cohort of managers is
accustomed to.


Questions?