Blue Ocean Strategy

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Creating uncontested market space. Explanation of Blue Ocean Strategy of W. Chan Kim and Renée Mauborgne. ('04)

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What is Blue Ocean Strategy? Description

Rather than competing within the confines of the existing industry or trying to steal customers from rivals (Bloody or Red Ocean Strategy) W. Chan Kim and Renée Mauborgne are suggesting Blue Ocean Strategy: developing uncontested market space that makes the competition irrelevant.


According to Kim and Mauborgne in the HBR of October 2004, competing in overcrowded industries is no way to sustain high performance. The real opportunity is: to create blue oceans of uncontested market space.


Competitive Advantage critique

Of course competition is important. But by focusing on competition and competitive advantage, according to Kim and Mauborgne, scholars, companies, and consultants have ignored two very important - and far more lucrative - aspects of strategy:

  • To find and develop blue oceans, and
  • To exploit and protect blue oceans. These challenges are very different from those to which strategists have devoted most of their attention.

In blue oceans demand is created, rather than fought over. There is ample opportunity for growth that is both profitable and rapid.


Two ways to create blue oceans

  1. One is to launch completely new industries, as eBay did with online auctions.
  2. It is more common for a blue ocean to be created from within a red ocean when a company expands the boundaries of an existing industry.

Certainly Kim and Mauborgne deserve credits for having made the point of the over-focus on competitive advantage and also for their beautiful metaphor of the two types of oceans.


Book: W. Chan Kim, Renée Mauborgne - Blue Ocean Strategy -




Blue Ocean Strategy Forum (69 topics) Help
  Filtering Blue Ocean Ideas: Strategic Overlays  - When developing Blue Ocean Strategies with organisations we find that some of the Blue Ocean ideas generated, while great ideas, do not fit with where the organisation is prepared to go.
For example, due to its exploration of non-customer insigh...
     
  'Purple' Ocean Strategy  - If there are shallow, boiling, highly competitive, bloody RED oceans, and there are deep, calm, clear BLUE oceans of untapped opportunity, are there also "PURPLE" - less competitive - oceans in between?
And do you always have to make your way th...
     
  Blue Ocean Strategy - Three Tiers of Noncustomers  - There are three tiers of non-customers that can be transformed into customers. They differ in their relative distance from your market:
1. Non-customers that are closest to your market. They sit on the edge of the market. They are buyers who min...
     
  Blue Ocean Strategy: Buyer Utility Map  - In Blue Ocean Strategy, the Buyer Utility Map is a chart that shows the six buy utility levers:
1. Productivity
2. Simplicity
3. Risk
4. Fun/image
5. Convenience
6. Environmental friendliness
These 6 can be pulled i...
     
  Blue Ocean Strategy - Buyer Experience Cycle  - In Blue Ocean Strategy there is a tool called Buyer Experience Cycle. It deals with the experience a buyer has in the various stages of buying-owning-disposing of a product or service. There are six stages of buyer experience:
1. Purchase
2...
     
  Blue Ocean Strategic Sequencing for Delta Airlines  - The fourth principle of the Blue Ocean Marketing Strategy is to get the Strategic Sequence of the Blue Ocean Strategy correct. The sequence has four steps which are utility, price, cost, and adoption. The company that I have been studying is Delta Ai...      
  eBay's Blue Ocean Strategy Strategic Sequence  - eBay operates in a Blue Ocean today due to their ability to capitalize on their first mover advantage and immense popularity. The BOS sequencing for eBay is:
- Buyer utility: eBay innovated a ...
     
  Blue Ocean Strategy Sequence L.L. Bean  - The four steps of strategic sequencing for L.L. Bean's Blue Ocean Strategy (BOS) begin with buyer utility and the six stages of the buyer experience. (Kim & Mauborgne, 2005, P. 121).
When I analyzed the bu...
     
  The Blue Ocean Strategy (BOS) Sequence of Citibank  - This week in a college class I am attending, we are looking at the sequence of the Blue Ocean Strategy. And more specifically, I have been researching Citibank.
Today, I would like to examine Citibank and evaluate the sequence in accordance wit...
     
  Blue Ocean Strategic Sequence for Barnes and Noble  - Barnes and Noble while it is not presently in a Blue Ocean environment it is certainly a company that has a history of pursuing such environments and appears to be following the same procedures to achieve Blue Ocean strategy success yet again. In the...      
  Blue Ocean Strategic Sequence for Blockbuster  - The BOS sequencing for Blockbuster is as follows:
- Buyer utility. They created buyer utility by offering convenience and affordability with their new online renting business model. They took away the hassle of having to drive to the store and c...
     
  Blue Ocean Strategic Sequence for Oreck Direct  - Oreck direct has been providing home cleaning products, such as vacuum cleaners and other household cleaning supplies since the 1970s to consumers. They sell these products through storefronts, retailers, infomercials, and websites.
A sm...
     
  Blue Ocean Strategic Sequence for Amazon.com  - To create a Blue Ocean Strategy company there has to be Strategic Sequencing. The components of BOS strategic sequencing are: buyer utility, price, cost, and adoption, in this order.
It is...
     
  Blue Ocean Sequencing - Bank of America  - As described by Kim and Mauborgne (2005) there are four principles that make up the Blue Ocean strategy: buyer utility, price, cost and adoption. To push Bank of America into a Blue Ocean, I propose they create an application for their customers that...      
  Blue Ocean Strategy of Google  - First it was IBM, then Microsoft and now Google. How Google made it to the top ? Adopting BOS ?
Google is a wonderful company revolutionizing information technology. The success of the networking company relies on Google's adoption of Blue Oc...
     
  Why is it called 'Blue' Ocean Strategy?  - I would like to know meaning of 'blue' and its meaning when we refer to Blue Ocean startegy. Why it is called blue and not yellow, purple or white?...      
  Blue Ocean Strategy Sequencing for Blockbuster  - BLOCKBUSTER is an american-based provider of home video and video game rental services.
- Buyer utility: Blockbuster already offers different videos, but it could unlock exceptional utility if it also offered a wider range of subscription online...
     
  Blue Ocean Strategic Sequencing - Exxon Mobil  - I’m completing a college assignment and request feedback on my thoughts about Exxon Mobil and Blue Ocean sequencing.
Buyer utility: being an oil and natural gas producer, an alternative energy source is the path most apparent. Focus needs to be ...
     
  Blue Ocean Strategic Sequencing - Dell  - I have been researching dell for the past several weeks in my business class and we are currently looking at the Blue Ocean strategy. I was asked to describe my sequencing of Dell and this is what I have come up with. I would appreciate any feedback,...      
  2 Wheeler Market in India in Mid 80s  - Another example of huge success of blue ocean strategy is 2 wheeler market in India in mid eighties.
Upto mid eighties two wheeler market was dominated by Bajaj Auto which had almost 100% market share with waiting period of 3-5 years for their 2...
     

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