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BOOK REVIEW BY DIPENDER KUMAR SINGH

MASTER SCHOOL OF MANAGEMENT ,MEERUT(2010-12

D1

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Slide 1

D1 Dipender, 11/16/2010

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PROF RENEEMAUBORGNE

JOHN ABBOTT

PROF CHAN KIM

JOHN ABBOTT

AUTHORS

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ACCOLADES Over 2 million copies sold

Translated into over 41 foreign

languages a world record

Taught as the major theory of strategy

at leading business schools

Gives insights to CEOs, Executives,

Heads of State and Prime Ministers

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Value Innovation

BUYER

VALUE

Value innovation is created in the region

where a companys actions favorably affect

both its cost structure and its valueproposition to buyers. Cost savings are

made by eliminating and reducing the

factors an industry competes on. Buyer

value is lifted by raising and creating

elements the industry has never offered.

Over time, costs are reduced further as

scale economies kick in due to the high

sales volumes that superior value

generates.

COSTS

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Red Ocean Strategy

Blue Ocean StrategyCompete in existing market space.

Beat the competition.

Exploit existing demand.

Make the value-cost trade-off.

Align the whole system of a firms activities

with its strategic choice of differentiation or

low cost.

Create uncontested market space.

Make the competition irrelevant.

Create and capture new demand.

Break the value-cost trade-off.

Align the whole system of a firms activities

in pursuit of differentiationand

low cost.

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FORMULATION PRINCIPLES RISK FACTOR EACH

PRINCIPLE ATTENUATES

Reconstruct market boundaries

Focus on the big picture, not the numbers

Reach beyond existing demand

Get the strategic sequence right

Search riskPlanning risk

Scale risk

Business model risk

EVALUATION PRINCIPLES RISK FACTOR EACH

PRINCIPLE ATTENUATESOvercome key organizational hurdles

Build execution into strategy

Organizational risk

Management risk

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QUESTION 3: WHY ARE RED OCEANS SOABUNDANT?

QUESTION 2: WHAT IS THE LINK BETWEEN VALUE

INNOVATION AND BLUE OCEAN STRATEGY?

QUESTION 1: JUST WHAT EXACTLY IS BLUE

OCEAN STRATEGY?

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Question 4: How

Can You Turn RedOceans Into Blue?

Question 5: What Is

The Fabric Of YourCompanys Success?

Question 6: Why

The Emphasis OnInnovation Today?

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Question 8:Question 8:Are ThereAre There

Really NoReally NoPermanentlyPermanently

GreatGreatCompanies?Companies?

Question 9:Question 9:Must You BeMust You Be

Best AtBest At

Anything ToAnything ToCreate BlueCreate Blue

Oceans?Oceans?

Question 7: WhatQuestion 7: What

Was TheWas The

FantasticalFantasticalInnovation OfInnovation Of Dr.Dr.

Seuss?Seuss?

Question 11: HowQuestion 11: How

Can You GetCan You Get

Customers To PayCustomers To Pay

Well Above IndustryWell Above Industry

Standards?Standards?

Question 10:Question 10:

Seeing IsSeeing IsBelieving, SoBelieving, So

Who Has DoneWho Has Done

What Using BlueWhat Using Blue

Ocean Strategy?Ocean Strategy?

Question 12: AreQuestion 12: Are

You Treading WaterYou Treading Water

In A Red Ocean OrIn A Red Ocean Or

Gliding Freely In AGliding Freely In A

Blue Ocean?Blue Ocean?

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Thank

y o u