By-

Chandankumar Garje Rahul Sanap Ritesh Ruhatiya Ravi Sagar Maneesh Pandita

Blue ocean strategy denote all the industries not

existence in today market Create and capture new demand Opportunity for highly profitable growth The creation of a new market space gives companies a natural monopolistic position Make the competition irrelevant

Formulating Blue Ocean Strategy maximize the opportunities + minimizing the risks Analytical Tools and Frameworks: 1) Strategy Canvas 2) Four Actions Framework 3) Eliminate-Reduce-Raise-Create Grid 4) Three Characteristics of Good Strategy.

The Strategy Canvas The Strategy Canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy.

Value Innovation : The Cornerstone of Blue Ocean Strategy

cost

Value Innovation

Buyer value

SEQUENCE OF BOS:-

The Eliminate-Reduce-Raise-Create Grid Benefits: It pursue differentiation & low costs to break the value-cost trade-off. It immediately flags companies that are focused only on raising and creating. It is easily understood by managers at any level , creating a high level of engagement in its application.
Eliminate Raise

Reduce

Create

Executing BOS
1. Overcome key organizational hurdles.
cognitive hurdle Resource hurdle Motivational hurdle Political hurdle

2. Build execution in to strategy :Create culture of trust and motivates people to execute the agreed strategy.

Three Characteristics of a Good Strategy

FOCUSES :on the important areas and not on every single factor. DIVERGENS: away from the competitors offerings. TAGLINE: A good strategy has a simple easy to communicate , clear-cut compelling TAGLINE.

These three characteristics serve as an initial litmus test of the commercial viability of blue ocean ideas.

Example
TATA NANO
Small and most inexpensive car in the world Created substitute for two wheelers Affordable cost to the manufacturer
First tagline was now you can; derived from Barack Obama's campaign.

Ex.2 Spicejet
Flights to Afghanistan capital Kabul
medical tourism and trade

Flights to Guangzhou and Macau

Red Ocean Strategy

Red Oceans refer to the known market space, i.e. all the industries in existence today. In red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known. Red ocean metaphor to describe an overcrowded market space of competitors all fighting for the same piece of the pie.

Characteristics
Industries focus on competing in a marketplace which already exists They focus on beating the competition They focus on the value/cost trade-off They focus on exploiting existing demand

RYAN AIR
Competing in very large airline industry
Low cost airline Uses secondary airports away from main

airports Only online booking and check-in Customers to pay for all extras

Red Ocean Strategy Blue Ocean Strategy

Existing market focus New market creation

Beat competition

Make competition irrelevant

Capture more of existing demand

Create new demand existing demand

Make a value/cost tradeoff

Disprove the value/cost tradeoff

EXPORTING IS AN ENTRY STRATEGY

Indirect Exporting Direct Exporting

Global Strategy
Global Strategy as to enter the global market with one strategy.

E.g. Apple phone, laptop, I pad etc.

FOREIGN PRODUCT AS AN ENTRY STRATEGY

Licensing A company assigns the right to a copyright a trademark to another company for a fee or royalty. E.g. journal Harvard business Franchising Special form of licensing in which the franchiser makes a total marketing program available including brand name, logo, products and methods of operations. E.g. McDonalds , KFC.

OWNERSHIP STRATEGIES Companies investing in foreign markets face ownership decisions.

Wholly owned subsidiaries

Operation in a host country that are fully owned by a foreign parent firm. They can involve marketing , assembly, or full scale integrated production operations. E.g. Skoda, Ford manufacturing plant.

Joint ventures
Joint ventures means finding a foreign partner E.g. Maruti Suzuki, TATA DOCOMO

Strategic alliances Two partners contribute a fixed amount of recourses and the ventures develops on its own. E.g. Nokia used Microsoft software for handsets.

ENTERING THROUGH MERGERS AND ACQUISITIONS

Mergers means a statutory combination of two or more

corporations by the transfer of the properties to one surviving corporation. Combination of Company in one company. The 2002 merger of Hewlett-Packard and Compaq Computer E.g. Procter & Gamble a consumer goods company, engaged in just such a transaction with its 2005 merger with Gillette.

ACQUISITIONS
Acquisitions means Corporate action in which a

company buys most stakes in order to control the target firm. E.g. Vodafones purchase of 52% stake in Hutch Essar for about $10 billion

TURNKEY PROJECT
Turnkey projects involve a contract for construction of

operating Facilities that are transferred for a fee to the owner when the facilities are ready to commence operations.

E.g. Construction project like C Link in Mumbai.

Production Sharing
Production Sharing as name suggest share the production

facilities. E.g. kpo, bpo etc.

COUNTERFEITS AND PIRACY

Today the biggest problem international marketers face in

trying to protect their brands is counterfeiting. Counterfeiting is the illegal use of a registered trademark. A counterfeiter copies a branded product, cashing in on its brand equity. E.g. Pirating of DVD

Thank you!!!