[Music] how about in those ahe had Market creating strategic moves is there a difference between those that succeeded and those that attempted but failed so we had two sets of control groups first it had to be that there was a difference between Market competing and Market creating which we confirmed there is a difference in how companies approach strategy and then the second one in those companies attempting to create new markets is there a difference systematic pattern between those that were able to succeed and unlock Financial results and those that failed and again we found a
pattern and what I want to do today is share with you um a little bit about how what is that pattern look like and what we found so we found two sets of findings the first set of findings was that we called these Market competing strategic moves basically red Ocean strategy because in almost every industry that we could find and virtually every government today will tell you that they're operating in the red increasingly intense competition margins are shrinking harder to get new Investments um more competition and we called markets creating strategic moves the blue ocean
because the opportunities for all of us out there were unlimited and there were sets of companies despite what was happening in the industry were carving out and creating this new space the differences that we found were that conceptually companies that were Market creating Market competing what they did is they took the structure of their industry for granted it's tough and they built their strategy based on it but companies that created new markets created blue oceans they said I am going to have my strategy shape the structure of my environment because indust indry structures are not
given they are not a product of nature they're a product of our minds we have created them and they can be reconstructed in your favor in red Ocean strategy because I accept the structure of my industry I spend my time fighting to divide existing demand winning compet customers from my competition Blue Ocean strategy does that but they say wait a minute the amount of people in the universe is so broad versus what my industry attracts how can I create new demand to grow my industry and under red Ocean strategy they say the only way to
succeed is to be the most differentiated player or the lowest cost player but if I'm differentiated I have a high cost structure of course right high price point meaning fewer people can buy it Blue Ocean strategy says no by reconstructing markets changing the fundamental basis of strategy even in high labor cost countries like Italy or the us or Europe or Japan I can achieve differentiation and low cost so that was the first set of findings our research found when we looked at the difference the second set of findings we found and why we called it
Blue Ocean strategy and not blue ocean marketing was that a strategy to be sustainable we found and to be not imitated many people come to us and they say ah Blue Ocean strategy great idea but you know it should be imitated very fast but look at cir to solay today over 20 years later still people fire a tough time to imitate what they're doing and the question is because Blue Ocean strategy is about the alignment of the value proposition that makes buyers win profit proposition which is how the company wins and earns money and people
motivating the people and the partners I have to work for me now of course under red Ocean strategy they need alignment as well but they try to align those three propositions to be be either differentiated or low cost but Blue Ocean strategy says we're going to align those three but to achieve differentiation and low costs so our exports have value around the world and so we retain our Import in our local domestic markets as well if you look at the video game industry I just mentioned it a bloody red industry very tough competitors you've got
Sony you've got Microsoft and then Nintendo comes with a Wii and it creates a blue ocean has both uh both the uh diff most differentiated profile out their lowest cost structure even though it's being produced in Japan and the United States and at the same time pulled in senior citizens as users kids that used to only like to do Sports they became users of it and it grew demand for the whole industry as well in the outdoor advertising industry these B you know the um when you're on the highway you see these panels that go
up advertising for something or whatever very red ocean very small very unattractive relatively unprofitable advertising um part of the industry and yet JC Deco the French company comes out creates a blue ocean and dominates in turn creating Outdoor Advertising through outdoor furniture in almost all the major cities of the world and it's what you see when you're sitting on bus stations or stops or the metro stops or in airports JC Deco redefine that space made Outdoor Advertising a growth Market where almost every major city in the world sees that company um as a chance to
improve the Aesthetics of its City and it and the uh public services that it offers while giving JC too great new advertising space that it gets contracts on again a red ocean Small industry JC Deco redefines it
