Oceano azul

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blue ocean strategy ®

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

www.blueoceanstrategy.com

© Kim & Mauborgne

Researching 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

www.blueoceanstrategy.com

© Kim & Mauborgne Red 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‐offAlign the whole system of a  company’s activities in pursuit of  differentiation  and low cost

www.blueoceanstrategy.com

© Kim & Mauborgne

Six paths to  blue ocean strategy
IndustryStrategic group

From  Competing  Within

Buyer group Scope of product or service offering Functional‐emotional  orientation of an industry Time

To Creating AcrossThe six conventional boundaries of competition 
www.blueoceanstrategy.com © Kim & Mauborgne

Strategy canvas of [yellow tail]  
High

Premium wines

[yellow tail]

Budget wines

Low

www.blueoceanstrategy.com© Kim & Mauborgne

Four actions framework
Reduce
Which factors should  be reduced well below  the industry’s  standard?

Eliminate
Which of factors that  the industry takes for  granted should be  eliminated?Create
A New  Value  Curve
Which factors should  be created that the  industry has never  offered?

Raise
Which factors should  be raised well above  the industry’s  standard?www.blueoceanstrategy.com © Kim & Mauborgne

Minimizing risks & maximizing opportunities in  formulation & executing blue ocean creation
Formulation Principles
Reconstruct market boundaries...
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