Beruflich Dokumente
Kultur Dokumente
Rene Mauborgne The INSEAD Distinguished Fellow and Professor of Strategy and International Management
Red Ocean Compete in crowded markets Blue Ocean Create and capture new market space
Two worlds
Red Ocean Strategy
Compete in existing market space. Beat the competition. Exploit existing demand. Make the value-cost trade-off.
Align the whole system of a Align the whole system of a strategic firm's activities with its firm's activities in pursuit of choice of differentiation or low differentiation and low cost. cost. VALUE INNOVATION
The phrase Blue oceans is new, but the concept is not. Think of what industries existed in 1900. Example Ford T-model
Value pioneering Turning unattractive industry into an attractive one Use of existing technology no R&D costs, just strategic thinking
Value innovation is the new strategic logic behind Blue Ocean Strategy. Instead of focussing on beating the competition, you focus on making it irrelevant by creating a leap in value for buyers and creating uncontested market space.
Price
Set a price that attracts a mass of buyers
Cost
Set the structure based on a target
Cirque-Example
Cirque created uncontested new market
space that made the competition irrelevant It created blue ocean from read ocean by creating theater, opera and ballet for adults and corporate clients who were traditionally non customers.
Example: Cirque
competition, Cirque offered people both the fun and thrill of the circus and the intellectual sophistication of the theater Because of this, Cirque du Soleil appealed to both circus customers (Children) and noncustomers (Adults)
Example: Cirque
Example: Cirque
Thank you