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1. Blue Ocean Strategy
Naveed Khan

2. Blue Ocean Strategy
• How to Create Uncontested Market Space
and Make the Competition Irrelevant
• Don’t Compete with Rivals—Make Them
Irrelevant
• Yet in today’s overcrowded industries,
competing head-on results in nothing but a
bloody “red ocean” of rivals fighting over a
shrinking profit pool.

3. Blue Ocean Strategy
• Kim and Mauborgne argue that tomorrow’s
leading companies will succeed not by battling
competitors, but by creating “blue oceans” of
uncontested market space ripe for growth
• Such strategic moves—termed “value
innovation”—create powerful leaps in value for
both the firm and its buyers, rendering rivals
obsolete and unleashing new demand.

4. RED OCEAN STRATEGY
•Compete in existing market
space
•Beat the competition
•Focus on existing customers
•Exploit existing demand

5. Red Ocean Strategy
• Make the value-cost tradeoff
• (create greater value to customers at
a higher cost or create reasonable
value at a lower cost)
• Align the whole system of a firm’s
activities with its strategic choice of
differentiation or low cost

6. BLUE OCEAN STRATEGY
• Create uncontested market space
• Make the competition irrelevant
• Focus on non-customers
• Create and capture new demand

7. BLUE OCEAN STRATEGY
• Break the value-cost tradeoff (Seek
greater value to customers and low cost
simultaneously)
• Align the whole system of a firm’s
activities in pursuit of differentiation and
low cost

8. Four Actions Framework
• Which of the factors that the industry takes for
granted should be eliminated?
• Which factors should be reduced well below the
industry's standard?
• Which factors should be raised well above the
industry's standard?
• Which factors should be created that the
industry has never offered?

9. Formulating Principles
• Reconstruct market boundaries
• Focus on the big picture, not the numbers
• Reach beyond existing demand
• Get the strategic sequence right