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Blue Ocean Strategy Key Concepts - ERRC

Blue Ocean Strategy - Key Concepts ERRC

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Blue Ocean Strategy talked about 4 Key Concepts which are Eliminate, Reduce, Raise, and Create. This slide explain the 4 key concepts and give example what Air Asia implement ERRC.

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Page 1: Blue Ocean Strategy - Key Concepts ERRC

Blue Ocean StrategyKey Concepts - ERRC

Page 2: Blue Ocean Strategy - Key Concepts ERRC

Books DataAuthor : W. Chan Kim and Renée

MauborgnePublished : 2005Page : 256Publisher : Harvard Business School PressISBN :1-59139-619-0

Page 3: Blue Ocean Strategy - Key Concepts ERRC

EliminateEliminate Feature or Services that are not

required by most target customer.Example :

Air Asia Complimentary Meal. Complimentary Baggage. Physical Ticket

Page 4: Blue Ocean Strategy - Key Concepts ERRC

ReduceReduce Feature or ServicesExample :

Air Asia Ground Crew (Steward act as ground crew) On Ground Time (Aircraft Cleaning is done by

passenger before landing)

Page 5: Blue Ocean Strategy - Key Concepts ERRC

RaiseAdd more services that are popular Example :

Air Asia Free Ticket (one way only) Point to point route that other airlines do not take.

Page 6: Blue Ocean Strategy - Key Concepts ERRC

CreateCreating a new service or feature that has

never been done in the industry.Example :

Air Asia Hot Seat : Front Rows and Emergency Exit Seat are

available for a cost. On-line Ticketing and Check-In