Blue Ocean Strategy (BOS) zaini@utm.my utm.my/vc

1. Blue Ocean Strategy (BOS) zaini@utm.my http://www.utm.my/vc

2. Prof. W. Chan KimRenée Mauborgne • W. Chan Kim is Co-Director of the INSEAD Blue Ocean Strategy Institute and The Boston Consulting Group Bruce D. Henderson Chair Professor of Strategy and International Management at INSEAD. Prior to joining INSEAD, he was a professor at the University of Michigan Business School, USA. He has served as a board member as well as an advisor for a number of multinational corporations in Europe, the U.S. and Pacific Asia. He is an advisory member for the European Union and serves as an Advisor to Malaysian Government. • Kim is a Fellow of the World Economic Forum. His Harvard Business Review articles, co-authored with Renée Mauborgne, are worldwide bestsellers and have sold over half a million reprints. Their Value Innovation and Fair Process articles were selected as among the best classic articles ever published in Harvard Business Review. They have co--authored articles in The Wall Street Journal, The Wall Street Journal Europe, The New York Times, The Financial

3. Blue Ocean Strategy? … • 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. • While innovation has been seen as a random/experimental process where entrepreneurs and spin-offs are the primary drivers – as argued by Schumpeter and his followers – BOS offers systematic and reproducible methodologies and processes in pursuit of blue oceans by both new and existing firms. • BOS frameworks and tools include: strategy canvas, value curve, four actions framework, six paths, buyer experience cycle, buyer utility map, and blue ocean idea index.

4. … Blue Ocean Strategy? • BOS frameworks and tools are designed to be visual in order to not only effectively build the collective wisdom of the company but also allow for effective strategy execution through easy communication. • BOS covers both strategy formulation and strategy execution. • The three key conceptual building blocks of BOS are: value innovation, tipping point leadership, and fair process. • While competitive strategy is a structuralist theory of strategy where structure shapes strategy, BOS is a reconstructionist theory of strategy where strategy shapes structure. • As an integrated approach to strategy at the system level, BOS requires organizations to develop and align the three strategy propositions: value proposition, profit proposition and people proposition.

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6. Value Innovation The cornerstone of Blue Ocean Strategy Instead of focusing on beating competition, you focus on making the competition irrelevant by creating a leap in value for buyers and your company, thereby opening up new and uncontested market space (pp. 12)

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8. Red Ocean vs Blue Ocean Strategy

9. The six principles of BOS

10. Analytical tools and frameworks • The strategy canvas • The four actions framework • The eliminate-reduce-raise-create grid • Value curves

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13. Yellow tail? Page 32

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17. Reconstruct market boundaries • Look across alternative industries • Look across strategic groups within industries • Look across the chain of buyers • Look across complimentary product and services offerings • Look across functional or emotional appeal to buyers • Look across time

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22. From head-to-head competition to Blue Ocean creation

23. FIGURE 4-4 Page 92

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29. To-do-list? • Develop the canvas strategy of global higher education sector? • Develop the canvas strategy of higher education sector in Malaysia? • Develop the canvas strategy in your respective sectors (water, energy, transportation etc)? • Develop the Four Action Framework for UTM