Blue Ocean Strategy

blue ocean strategy ®

Go where profits and growth are – and where the competition isn’t

www.blueoceanstrategy.com © Kim & Mauborgne R esearching the history of blue ocean creation

• Data: 150 strategic moves, more than 30 industries, over 100 years (1800‐2000)

•Variables considered: industrial, organizational and strategic Re d versus blue

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 company’s activities with its strategic choice of differentiation or low cost Blue Ocean Strategy

Create uncontested market space Make the competition irrelevant Create and capture new demand Break the value‐cost trade‐off
Align the whole system of a company’s activities in pursuit of differentiation and low cost Six paths to blue ocean strategy

ng

The six conventional boundaries of competition

High

Premium wines

[yellow tail]

Budget wines

Low

|Reduce |
|Which factors should be reduced well |
|below the industry’s standard? |
| | | | | |