This presentation is a shift of concept from traditional to innovative

1. Strategic Thinking in a
VUCA WORLD – The
BLUE OCEAN
Strategy
Presented by:
ROMAE DE LOS REYES-DE ASIS, Ph.D.
Executive Vice President
Metro-Dagupan Colleges - Philippines

2. METRO-DAGUPAN COLLEGES

4. 14
Different Chaotic 21st C Conditions :
Volatility, Uncertainty, Complexity, Ambiguity
1. VUCA refers to “new management
approaches” that show a different way of
a. how we see the world around us, and
b. how we make decisions.
2. This complements rather than throws away
many of the tools and frameworks learned in
old management school curricula for
analyzing the environment of any business.
a. PE S TE L analysis
b. S WOT analysis

6. The environment of jobs/entrepreneurship &
education is more chaotic than before (VUCA)
V = Volatility. The nature and dynamics of change,
and the nature and speed of change forces and
change catalysts.
U = Uncertainty. The lack of predictability, the
prospects for surprise, and the sense of awareness
and understanding of issues and events.
C = Complexity. The multiplex of forces, the
confounding of issues and the chaos and confusion
that surround an organization.
A = Ambiguity. The haziness of reality, the potential
for misreads, and the mixed meanings of conditions;
cause-and-effect confusion.

7. Succeeding in a VUCA world . . .
• Volatility can be countered with vision. Leaders with
a clear vision of where they want their organizations
to be in three to five years can better weather volatile
environmental changes. Make business decisions to
counter the turbulence while keeping the organization’s
vision in mind.

8. Succeeding in a VUCA world . . .
• Uncertainty can be mitigated with
understanding. Leaders must learn to look
and listen beyond their functional areas of
expertise. Leaders must reach out to all
levels of employees in their organization,
and to develop and demonstrate teamwork
and collaboration skills.

9. Succeeding in a VUCA world . . .
• Complexity can be countered
with clarity. Leaders, who can
quickly tune into what’s
important and tune out the
“noise” can make better, more
informed business decisions.

10. Succeeding in a VUCA world . . .
• The antidote to ambiguity
is agility - the ability to
move quickly to apply
solutions (Kinsinger and
Walch, 2012).

11. Mapping of
VUCA
based on
how much one
knows
(DESCRIPTION)
vs.
how well one can
predict results of
One’s Actions
(PREDICTION on
ACTION) Source: HarvardBusiness Review, January-February2014
WHAT
VUCA Really Means
for You:

16. Blue Ocean Strategy
The “Blue Ocean” approach is a strategic tool
that helps innovation strategists’ assess current
and desired future strategic states whereas..Red
Ocean is a current state.
A business model describes the rationale of how
an organization creates, delivers, and captures
value (economic, social, cultural, or other forms
of value).

17. Blue Ocean Strategy
"Blue ocean strategy generally refers to the creation by
a company of a new, uncontested market space
that makes competitors irrelevant and that creates
new consumer value often while decreasing cost”.
BOS is all about minimizing risks due to competition
threat and maximizing opportunities by exploring
new boundaries.
Formulating and executing Blue Ocean Strategy have
their own principles that define and separate blue
ocean strategy from competition-based
strategic thought.
Blue ocean strategy is about gaps rowing demand.

18. Characteristics of Blue Ocean Strategy

19. Principles of Blue Ocean Strategy:

20. Red Ocean Strategy:
The Red Ocean Strategies suggest that there is no way that a
corporation can achieve both kinds of competitive
advantages. The Red Ocean companies try to outperform
their rivals to grab a greater share of existing demand.
Meaning:
Red Ocean Strategy is a head-to-head battle where the
players of a particular segment compete with each other
remaining in the same market space i.e. within the
boundaries of the same industry on the principle of
competitive advantage.
Definition:
"Red oceans represent all the industries in existence today the
known market space. In the red oceans, industry boundaries
are defined and accepted, and the competitive rules of the
game are known".

21. Characteristics of Red Ocean Strategy:

23. Difference between Red & Blue Ocean Strategies:
Basis Red Ocean Strategy Blue Ocean Strategy
Industries Red Oceans represent the
fiercely competitive arena
where most companies
compete
Blue oceans, denote all the
industries not in existence
today- the unknown market
space, untainted by competition.
Competition This strategy focus on
the competition within the
existing market space.
This strategy focuses on creation
of uncontested market space.
Approach Approach of red ocean strategy
is to beat the competition.
Approach of the red ocean strategy
is to make the competition
irrelevant

24. Difference between Red & Blue Ocean Strategies:
Demand In Red Ocean strategy higher
weightage is given to exploit
existing demand.
In Blue Ocean strategy weightage
is given to develop future demand.
Goal Goal of this strategy plan is to
make value-cost-trade-off
Goal of this strategy plan is to
brake the value-cost-trade-off.
Alignment of
System
Align the whole system of a
firmǯs activities with
its strategic choice of
differentiation or low cost
Align the whole system of a firmǯs
activities in pursuit of
differentiation or low cost

25. Difference between Red & Blue Ocean Strategies:
Profit
Opportunity
Profit opportunity of using Red
Ocean Strategy is low.
Profit opportunity of using Blue
Ocean Strategy is High.
Customer
Focus
Red Ocean strategy focuses on
existing stream of customers.
Blue ocean strategy focuses on
creation of new customers.
System
Approach
In Red Ocean strategy system
approach is towards low cost
and differentiation
In Blue Ocean strategy system
approach is towards creativity and
innovation.

27. Red oceans and blue oceans make up market
universe
Red oceans: all industries in existence
= known market space
Blue oceans: all industries not in existence
= unknown market space
New Market Space

28. CONCLUSION
Red ocean strategy is a market-competing
strategy, while Blue ocean strategy is a
market-creating strategy
As red oceans are becoming bloodier, we
need to create more blue oceans
“The only way to beat the competition is to stop trying to beat the
competition!”