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Blue Ocean Strategy

Why do established organisations fail?

The fear cannibalizing their

successful products
They are risk averse
Focus too much on present
What needs to be done?
Identify the gaps
New customer segments emerging /customer
segments that existing competitors neglect
New customer needs emerging, or existing
customer needs that existing customers do not
serve well
New ways of producing, delivering or
distributing existing (or new) products or new
services to existing (or new) products/services.
Selling the idea internally
The company must communicate and
explain its objective so that there comes a
point when everybody says I know what
we are trying to achieve and I understand
The company should make the objective
realistic and achievable so that people say,
Yes, we can achieve this objective.
People must move from rational acceptance
of an objective to emotional commitment.
Rational Acceptance to emotional
Make people feel part of an elite group that is
difficult for others to enter. Reinforce the team
feeling through symbols and rituals.
Create a credible enemy for the team
Create positive and negative incentives to
promote the chosen objective
Allow people to develop the objectives
themselves and empower them to carry it out.
Lead by example.
Keep communicating and reminding people of
the objective.
Blue Ocean vs. Red Ocean
Blue Ocean Strategy
Blue Ocean Strategy
Blue Ocean Strategy Indian Examples
Tata Nano First affordable family
Rewa Electric First Electric/Smart
Royal Enfield First Powerbike
MUSA High powered tractors
Narayana Hrudayalaya - Making
heart surgery affordable
GCMMF (Amul) Procurement,
processing and distribution of
packaged milk products