blue ocean strategy (cracow translation days 2013)

Blue Ocean Strategy Can translators make

competition irrelevant? Marta Stelmaszak

Cracow Translation Days 7 September 2013

Agenda

• Introduction • Economics and theories • Red oceans and blue oceans • Creating a blue ocean • Formulating a blue ocean strategy • Strategy canvas • Summary and questions

Introduction

• About me • About this workshop

• Please take notes • Use the notepad in your conference pack • If an example comes to your mind, share it • Try to leave the room with action points

Economics and theories

• Why theories are not just theories? • Why theories and strategies are not just for big

companies? • What I took away?

• LSE: network economics, switching cost, disintermediation

• Oxford: law of demand and supply, Veblen goods, marginal cost, production cost

• Other: the Golden Circle, Why, ICA • LSE: innovation, disruption, project management, SMART

Red oceans and blue oceans (1)

• Book: “Blue ocean strategy. How to created uncontested market space and make competition irrelevant”, W. C. Kim, R. Mauborgne

• Preface: “This book is about friendship” • I’ll be using examples: Cirque du Soleil,

Apple, others…

Red oceans and blue oceans (2)

• Red ocean

Red oceans and blue oceans (3)

• Red ocean of translation - examples • Compete in existing market space • Beat the competition • Exploit existing demand • Make the value-cost trade-off • Differentiation or low cost

Red oceans and blue oceans (4)

• Blue ocean of translation • Create uncontested market space • Create and capture new demand • Break the value-cost trade-off • Value innovation

• Make the competition irrelevant

Red oceans and blue oceans (5)

• Blue ocean

Creating a blue ocean (1)

A new value curve

Eliminate

Reduce Raise

Create

Creating a blue ocean (2)

• Which of the factors that the industry takes for granted should be eliminated?

Creating a blue ocean (3)

• Which factors should be reduced well below the industry standard?

Creating a blue ocean (4)

• Which factors should be raised well above the industry standard?

Creating a blue ocean (5)

• Which factors should be created that the industry has never offered?

Creating a blue ocean (6)

• Eliminate Raise

• Reduce Create

Formulating a blue ocean strategy (1)

• Reconstructing market boundaries • Researching beyond existing demand • Focusing on the big picture

Formulating a blue ocean strategy (2)

• Reconstructing market boundaries • Path 1: Look across alternative industries • Path 2: Look across strategic groups within

industries • Path 3: Look across the chain of buyers: purchasers,

users, influencers • Path 4: Look across complementary product and

service offerings • Path 5: Look across functional or emotional appeal • Path 6: Look across time

Formulating a blue ocean strategy (2)

• Reconstructing market boundaries Head-to-head competition Blue ocean

Industry Focuses on rivals within the industry

Looks across alternative industries

Strategic group Focuses on competitive position within a group

Looks across strategic groups within industry

Buyer group Focuses on better serving the buyer group

Redefines the industry buyer group

Scope of service offering Focuses on maximising the value of service offerings

Looks across to complementary product and service offerings

Functional-emotional orientation

Focuses on improving price performance within the functional-emotional orientation

Rethinks the functional-emotional orientation

Time Focuses on adapting to external trends as they occur

Participates in shaping external trends over time

Formulating a blue ocean strategy (3)

• Researching beyond existing demand

Soon to be Refusing Unexplored

Formulating a blue ocean strategy (3)

• Researching beyond existing demand • Buyer experience cycle

Purchase Delivery Use Supplements Maintenance Disposal

Formulating a blue ocean strategy (3)

• Focus on the big picture, not numbers

Strategy canvas (1)

Strategy canvas (2)

Strategy canvas (3)

• Compare your business with your competitors’ by drawing your “as is” strategy canvas

• See where it can be changed

Summary • Compare your business with your

competitors’ by drawing your “as is” strategy canvas

• See where it can be changed • Go into the field to explore the six paths to

creating blue oceans • See which factors you should eliminate, create

or change • Draw your “to be” strategy canvas

Questions

Marta Stelmaszak www.wantwords.co.uk

marta@wantwords.co.uk @mstelmaszak