Blue Ocean Strategy, Create New Markets and Leave the Competition Behind | Renée Mauborgne | WOBI

how about in those ahead market creating strategic moves is there a difference between those that succeeded and knows that attempted but failed so we had two sets of control groups first it had to be that there was a difference between market competing and market creating which we confirmed there is a difference in how companies approach strategy and then the second one in those companies attempting to create new markets is there a difference systematic pattern between those that were able to succeed and unlock financial results and those that failed and again we found a pattern and what I want to do today is share with you a little bit about how what is that pattern look like and what we found so we found two sets of findings the first set of finding was that we call these market competing strategic moves basically red Ocean Strategy because in almost every industry that we could find in virtually every government today will tell you that they’re operating in the red increasingly intense competition margins are shrinking harder to get new investments more competition and we call markets creating strategic moves the blue ocean because the opportunities for all of us out there were unlimited and there were sets of companies despite what was happening in the industry we’re carving out and creating this new space the differences that we found were that conceptually companies that were market creating market competing what they did is they took the structure of their industry for granted it’s tough and they built their strategy based but companies that created new markets created blue oceans they said I am going to have my strategy shape the structure of my environment because industry structures are not given they are not a product of nature there are a product of our minds we have created them and they can be reconstructed in your favor in red ocean strategy because I accept the structure of my industry I spend my time fighting to divide existing demand winning customers from my competition Blue Ocean Strategy does that but they say wait a minute the amount of people in the universe is so broad versus what my industry attracts how can I create new demand to grow my industry and under red ocean strategy they say the only way to succeed is to be the most differentiated player or the lowest cost player but if I’m different you too have a high cost structure of course right high price point meaning fewer people can buy it Blue Ocean Strategy says no by reconstructing markets changing the fundamental basis of strategy even in high labour cost countries like Italy or the US or Europe or Japan I can achieve differentiation and low cost so that was the first set of findings our research found when we looked at the difference the second set of findings we found and why we called it blue ocean strategy and not blueish and marketing was that a strategy to be sustainable we found and to be not imitated many people come to us and they say ah blue ocean strategy great idea but you know it should be imitated very fast well look at Cirque du Soliel today over 20 years later still people fire trough time to imitate what they’re doing and the question is because blue ocean strategy is about the alignment of the value proposition that makes buyers win profit proposition which is how the company wins and earns money and people motivating the people and the partners I have to work for me now of course under red ocean strategy they need alignment as well but they try to align those three propositions to be either differentiated or low-cost but blue ocean strategy says we’re going to line those three but to achieve differentiation and low costs so our exports have value around the world and so we retain our import and our local domestic markets as well look at the video game industry I just mentioned it a bloody red industry very tough competitors you got Sony you’ve got Microsoft and then Nintendo comes with a Wii and it creates a blue ocean has both both the different most differentiated profile out there lowest cost structure even though it’s being produced in Japan in the United States and at the same time holding senior citizens as users kids that used to only like to do sports they became users of it and a grew demand for the whole industry as well in the outdoor advertising industry these bull you know the when you’re on the highway you see these panels that go up advertising for something or whatever very red ocean very small very unattractive relatively unprofitable advertising part of the industry and yet JCDecaux the French company comes out creates a blue ocean and dominates in turn creating outdoor advertising through outdoor furniture in almost all the major cities of the world and it’s what you see when you’re sitting on bus stations or stops or the metro stops or in airports JCDecaux redefine that space and made outdoor advertising a growth market where almost every major city in the world sees that company as a chance to improve the aesthetics of its city and in the public services that it offers while giving JC to go great new ever tizen space that gets contracts are again a red ocean small industry JCDecaux redefines it

14 thoughts on “Blue Ocean Strategy, Create New Markets and Leave the Competition Behind | Renée Mauborgne | WOBI

  1. "Kids that only use to do sports now have become users of it too?" this might be just a great debate-monger amongst consumers. The way she said it makes it sound as if active athlete kids have been brain washed that playing a fake-reality game is far better than doing actual outdoor exercise. A marketing campaign with that sort of content is a business killer when conveying the message to the respective target audience. People of my same criteria would probably get put-off by such reckless marketing statements about Ninetndo. I hope Nintendo doesn't come over knocking on her door to litigate against her misguided product interpretation.

  2. i understood from this presentation,,it all about extending boundaries,,then what is the difference between glottalization & blue ocean

  3. The only thing keeping the Wii alive is their staple games such as Mario and smash bros. other than that the Wii was a big failure.

  4. It was always the rule – who seats closer to Gov't money/contracts then that company is profitable. All big companies grew up on gov't contracts and nothing to do with blue/red and other color strategies.

  5. With your kind permission, Renée @ WOBI

  6. How Blue Ocen Strategy is different than globlisation and innovation through technology?

  7. Renee, have you case histories of Blue Ocean Strategy being successfully applied in Professional Services Industries?

  8. hey guys , i need a questionare ( or at least some question) that show us that is our company is blue or red , please if you had some idea about making this questionare share it with me , Email : [email protected]@t Whatsapp : +989380756161

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