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0:00
Hello. I am Dr. Ashok Kurtkoti.
I am going to speak
on Blue Ocean Strategy.
0:07
Coming to the current
market situation,
what has happened is
the world has become a global village
after liberalization in 1990.
All over the world you find
that there's a lot of competition.
Competition is severe
due to globalization,
and it's no longer
a monopoly situation.
Companies are finding
it hard to compete,
and that's the reason for me
to take this particular topic.
0:29
Now I'm coming to the Red Ocean.
We have existing market space,
industrial boundaries
are well-defined,
then we have
cutthroat competition,
and the growth and
profits are restricted.
It is exactly what, as I told you,
is the current market situation.
Today, we're finding it hard
to compete with each other
and that it's
really possible for us
to find out why
Blue Ocean is created.
0:54
Now when you
talk about Blue Ocean,
it creates a new market space.
Companies expand and
grow across the boundaries.
And competition is
irrelevant in this case.
We want to make
competition irrelevant
and make significant
opportunities for growth.
1:08
And this is a term coined
by two Harvard professors,
Kim and Mauborgne,
both from Harvard.
They've studied
about 150 positions
from 1880 to 2000,
in more than 30 industries.
First of all, it was
called value innovation,
then it was turned
into Blue Ocean Strategy.
They first published
research results
in a Harvard Business
Review article titled,
"Value Innovation:
The Strategic Logic of High Growth."
1:38
Let me explain the concept
of Blue Ocean Strategy.
When you talk of
value innovation,
you need to reduce costs,
increase buyer's value,
and you have to see
that cost structure is lowered
through eliminating
and reducing factors
an industry competes on,
but buyers do not value it highly.
Buyers value
is increased by raising
and creating elements that
industry has never thought of,
and the industry has never
offered and thought of.
High value of sales
growth is created
through scarce of economics
and further cost reduction.
Normally,
an effort is done to see
the simultaneous
pursuit of differentiation.
That means you're
differentiating
from your competitor by going in
for superior market value
and lowering the cost.
