KIRLOSKAR INSTITUTE OF ADVANCED MANAGEMENT

STUDIES
Kirloskar Group Enterprise

Strategic Management

BLUE OCEAN STRATEGY

Presented by:
Shipra Maitra (P2018-P046)
Swati Dubey (P2018-P053)
Sonali Pandey (P2018-H095)
Divyanshu Tripathi(P2018-H101)
 History
• Authored by W. Chan Kim and Renee Mauborgne in
2005.
• Based on a study of 150 strategic moves spanning
more than 100 years and 30 industries.
• BOS is the simultaneous pursuit of differentiation and
low cost.
• The aim of BOS is not to out-perform the competition
in the existing industry, but to create new market
space or a blue ocean, thereby making the
competition irrelevant.
• BOS offers systematic and reproducible
methodologies and processes in pursuit of innovation
by both new and existing firms.
• BOS frameworks and tools are designed to be visual
in order to not only effectively build the collective
wisdom of the company but also to effectively execute
through easy communication.
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Advanced Management
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 Introduction
What is Blue Ocean Strategy?
Blue ocean strategy is the simultaneous pursuit of
differentiation and low cost to open up a new market
space and create new demand. It is about creating
and capturing uncontested market space, thereby
making the competition irrelevant. It is based on the
view that market boundaries and industry structure
are not a given and can be reconstructed by the
actions and beliefs of industry players.

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Advanced Management
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Examples of Blue Ocean Strategy
Making the life of millions of Indians by
enabling food delivery at doorstep in no
time.

Selling cosmetics of countless brands

online. Nykaa now is clearly the market
leader in online beauty space.

Jio aimed to made the life of Indians

easy with penetrating deep with 4G
Internet

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 What is Red Oceans and Blue Oceans?

Red oceans are all the industries in existence today – the known

market space. In red oceans, industry boundaries are defined and
accepted, and the competitive rules of the game are known.

Blue oceans, in contrast, denote all the industries not in existence

today – the unknown market space, untainted by competition. In blue
oceans, demand is created rather than fought over. There is ample
opportunity for growth that is both profitable and rapid.

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 Six Principles of Blue Ocean Strategy

Formulation Principles Execution Principles

•Reach beyond existing • Overcome key

demand organizational hurdles
•Reconstruct market •Build execution into
boundaries strategy
•Focus on the big picture,
not the numbers
•Get the strategic sequence
right

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Advanced Management
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 About Cirque du Soleil

By Group of Managed by:

Founded in
Street Guy Leliberte
Year I984
Performers Daniel Gautier

Started with 73
Touring one employees
show at a time Now 4,000 Revenue $2.5
(3 years employees billion
Canada) worldwide

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Advanced Management
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 Value Innovation: The cornerstone of BOS

• Value innovation places equal emphasis

on value and innovation
• Value innovation is a new way of thinking
about and executing
strategy that results in the creation of a
blue ocean.
• The creation of blue oceans is about
driving cost down while
simultaneously driving value up for buyers.
• Cost savings - eliminate and reduce
competing factors

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 Facts about Cirque du Soleil
 It has created its blue ocean strategic movement by challenging the
convention of circus industry.
 Cirque du Soleil  150 million spectators
 300 cities
In less then 20 years
 Competitors In Red Ocean Market
Ringling Bros.
Barnum & Bailey
 Remarkable Rapid Growth Because It Was Achieved In:-
Declining Industry
 Target Group Added Adults And corporate Clients
 Gives Unprecedented Entertainment Experience
 First Cirque du Soleil Production was titled “We Reinvent The Circus”
 Reinvention of art form
no animal, ring master still hit.
attract human acrobats, jugglers, aerialist
own theme, sound tsrack and costume
human innovation and imagination
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 Blue Ocean Strategy and Cirque du Soleil

• Created new market

• Strong profitable growth
• Didn’t follow competition
• Value innovation
• Differentiating factors
• Fun and thrill
• Intellectual sophistication

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 SWOT Analysis
●
Artistic tradition and promote talent
Strength ●
Gaining customer loyalty and reputation

●
Business model that can be easily copied
Weakness Inability- manage and promote business
●

Target Asian countries and familiar with local audiences

Opportunities
●

Gain competitive advantage

●

●
Expenses and financial resources
Threats ●
Threat from the entertainment industry
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Advanced Management
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 Conclusion

• A company should maintain a healthy position

• Success bring imitators
• Blue ocean can turn into Red ocean, it is only a matter of time.

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Advanced Management
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 THANKYOU

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Advanced Management
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