Blue Ocean Strategy

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

Blue Ocean Strategy Red Ocean

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

One is to launch completely new industries, as eBay did with online auctions.
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

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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 very ..."

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 t..."

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..."

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..."

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 so..."

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 h..."

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 ..."

Craigslist Meets Toys R Us
"I'm close to launching a new venture that takes the craigslist approach to item exchange and incorporates functions/ideas from ebay and other popular e-com sites. The focus will be for parents wanting..."

Blue Ocean Strategic Sequencing - Apple
"I think Apple computers have demonstrated remarkable success of Blue Ocean strategies time and again by launching new products: first iMac, then iPods, then iPhones and now iPads. I hope they keep thi..."

Blue Ocean Strategic Sequencing - Amtrak
"To get Amtrak to a blue ocean, I propose to make it a more family-friendly product with a kids’ car (similar to Disney’s kids’ activities on their cruise ships), and replacing the snack car wit..."

Blue Ocean Strategic Sequencing in Office Furniture
"I am working on a Blue Ocean strategy for a course I am taking, and am hoping to get a bit of input on what I have developed for its sequencing.
My goal is to take a fictitious office furniture m..."

Organic Foods and Solar Energy - BOS
"Trader Joe's is an organic food store. As a complimentary product I would pair Joe's up with green energy products.
- Buyer utility: with the high costs of electricity bills consumers will purcha..."

Blue Ocean in Medical Clothes?
"If the clothing industry pairs up with the healthcare industry, could they create a blue ocean by creating clothes that read vital signs? Strategic sequence would be buyer utility, price, cost and ado..."

Nestle Blue Ocean Strategy Sequencing
"Nestle's Blue Ocean Strategy Sequence
Greetings to the group. For an assignment I described a Blue Ocean strategy sequence for Nestle. Please read the following and make any comments or su..."

Blue Ocean Strategic Sequencing - Boeing
"Buyer utility: Boeing has a buyer utility that reaches a smaller amount of the populace, aircraft companies. That being said, there are plenty of options for Boeing to be the best option for their cus..."

Strategic Sequencing Education Industry for Adults
"There needs to be significant changes in the way education is delivered to adult learners. A new company could use this strategy.
Buyer utility: with high unemployment, new skills are needed by ..."

Nintendo's Wii BOS Strategic Sequence
"Get the strategic sequence right," is an important part of the Blue Ocean strategy. Buyer utility, price, cost and adoption. Nintendo has been successful in meeting all the strategic requirements by t..."

Verizon Communications Strategic Sequencing
"Verizon communications strategic sequence:
- Buyer utility-mobile devices unlock exceptional buyer utility in terms of convenience and entertainment. They also substantially increase buyer produc..."

Papa Murphy's Strategic Sequence
"Papa Murphy’s strategic sequence:
- Buyer Utility - as a retailer of take n bake pizzas, Papa Murphy’s provides an alternative to industry offerings. One can either order a restaurant style pizza..."

The Importance of Innovating
"This model is useful because it makes managers think about breaking the rules of competition.
Aristoteles said: "You can't change the wind, you can however adjust your sails.“
So let's adjus..."

Blue Ocean Strategic Sequencing - Best Buy
"Buyer utility. For Best Buy, I see the most compelling reason the mass of people flock there is because of the vast products and product experience the customers can get. In the gaming environm..."

Sequencing Barnes and Noble
"The first step in sequencing barnesandnoble.com would be the review buyer utility. Are the customers buying into the strategy? Is the web site user friendly and easy to use? When reviewing pricing, Ba..."

Wal-Mart Strategic Sequence
"Based on the BOS sequence, Wal-Mart (branded as Walmart since 2008) is clearly in a blue ocean:
The buyer utility is obvious, peddling the most popular and essential items from a do..."

Blue Ocean Strategy versus RBV and MBV
"Hi everybody, I need to understand where Blue Ocean Strategy fits in the debate between the major strategy approaches (e.g. Market-based view (Porter) and..."

Not Properly Contested Markets
"Some markets are not properly contested, can such a situation be considered as a blue ocean?"

Blue Ocean Strategic Sequencing for US Airways?
"US Airways is in in a red ocean, they must determine there their 3 tiers of consumers. For them to work toward a Blue Ocean they need to think of non consumers first, commonalities before differences ..."

Six Paths Framework for Property Management Companies
"For the property management industry, one of the major issues that keep companies in the red ocean is simply trying to be better than the competition. Instead of trying to be different than oth..."

Getting the Strategic Sequence Right for Verizon Wireless Droid Pro
"Verizon wireless has come out with a new phone called the droid pro. The sequence of Blue Ocean strategy consists of: the buyer utility, price, cost, and adoption. Is it considered a Blue Ocean strate..."

Blue Ocean Strategy Disadvantages
"While most of the participants in this forum are quick to point out the first mover advantage that a BOS creator gets, we need to be aware of th..."

Blue, Green or Even Violet Ocean Strategies
"I think ROS and BOS are parts of a process that all active companies will pass. In fact they are inevitable events during organizations' perfection. Only a creative company can enter BOS.
A dynam..."

This Isn't Strategy?
"This could be a few things but, strategy, really? It's a process at best either, deliberate (ROS) or emergent (BOS). It could be a question for managers to ponder in forming strategy. Arguably ..."

BOS in Less Developed Countries
"Kim & Mauborgne: create uncontested market space and make the competition irrelevant.
In the market place in less developed countries there are informal small businesses and illegal points of sal..."

Blue Ocean Strategy in Small Companies
"For most small businesses in the current environment, staying alive is a major issue! Simply paying the bills tends to drive one towards the ROS concepts.
The smaller companies have..."

	BOS and ROS are Both Supplier Centric "In both ROS and BOS the focus is on the supplier and on competition with other supplier(s). Both try to outdo the competition by studying competition and fighting or bypassing its
	The Context Determines BOS or ROS "A good strategy is a winning strategy. So in some circumstances we need to use BOS and in some other ROS fits better. The context makes the choice and not the contrary."

Blue Ocean is Economics Failure
"In my opinion, the idea of a Blue Ocean hurts the basic principles of economics which results in all economic profits tending to zero. Whenever an industry presents abnormal earnings, it will a..."

Differences in BOS / ROS Cultures
"I have discovered over the last five years that in Red Ocean Strategies (ROS) people compete to maintain a competitive edge over the rival companies, organizations or individuals through a numb..."

	First Mover Advantage / Price Maker in BOS "As soon as an organisation identified a new sector/industry as a part of BOS, they will get the First Mover Advantage (refer also to
	BOS = Niche Market Strategy "Is BOS not just another phrase for a niche market strategy? They share the common feature of a 'lone player'."

What is Strategic Sequence?
"According to Kim and Mauborgne (2005) the BOS will only work if it’s formulated in the right strategic sequence. Without fulfilling one of these, the plan will fail. The sequence laid out by the autho..."

Best Buy - Blue Ocean Strategy Proposal
"I’ve chosen Best Buy to form a Blue Ocean strategy. The idea is to offer music lessons and basic computer courses to accompany the products they provide for sell.
The first consideration i..."

Can a Blue Ocean Eventually Turn Into a Red Ocean?
"When a company creates a blue ocean by foreseeing an opportunity, there is always a chance of other companies entering the same segment by sensing the opportunity already created. Thus, can we say tha..."

Define the Gap in the Market
"Launching new company (for example in medical equipment) with a me-too kind of product is always having a traction into the ROS (red ocean strategy), but in the end due to lack of branding and product..."

BP Moving From Red Ocean to Blue Ocean
"BP have much to do to move from red ocean to blue ocean. They must figure out a way to redeem themselves to please the millions of unhappy customers, both current and non-customers alike. The m..."

Six Paths to Moving from Red to Blue Ocean
"I am seeking feedback on my class project. I am trying to move a red ocean company to a Blue Ocean company. I am working with the world famous Pike Place Fish Market in the fish and seafood ind..."

Navy Federal Credit Union
"I am seeking to identify ways in which Navy Federal Credit Union (NFCU) can convert and break away from the competition. I would be interested in your opinions.
Thank you in advance.
I have ..."

Blue Ocean Strategy for UPS
"UPS currently operates world wide and is at the forefront with electronic shipping technologies and a massive fleet of transportation to support business. By identifying the three tiers of non-cust..."

Sony Playstation in Medical Field
"Part of my class assignment is to overlook the transition of red ocean company into Blue Ocean one. I choose Sony Playstation. Although Sony Playstation has been highly praised as the most advanced vi..."

Prerequisites for Blue Ocean Strategy
"To be effective with a Blue Ocean strategy, top management must adopt a "mindful" perspective to:
1. Build an awareness of, and become open to, subtlety and nuance. Listen and ask question..."

CSR Part of Blue Ocean Strategy
"Companies may consider Corporate Social Responsibility (CSR) as part of Blue Ocean strategy. Recent research concluded that most of people preferred to buy from a business bringing out a produc..."

Blue Ocean Strategy and Innovation
"Strategy is always related with risk, due to market volatility. Also today´s volatility is increasing very fast. So innovate thinking is a must.
We should turn our thinking away from singu..."

Creating a New Mental Category
"Blue ocean strategies are basically about creating a new mental category or a frame of reference. For example, Red Bull created a new category called "energy drinks" within the existing "beverage" cat..."

Porter Model vs Blue Ocean Strategy
"Does anyone know about the differences between Porter's (5 Forces, Competitive Advantage) Strategy Model and Blue Ocean strategy?"

Blue Ocean Strategic Sequencing on Disney
"For school, I have to devise a blue ocean strategy for a specific business and industry (and post it in a user group such as this one_- I also need your responses to work with, lol:)
I chose to u..."

Blue Ocean Strategy Research
"I am a Phd Student and would like to do a research in Blue Ocean Strategy. Any research model can you suggest."

Visionary Leadership and Blue Ocean Strategy
"I think BOS success merely depends on the leadership of the leaders, how visionary a leader is, and how far business is seen.
The process of achieving vision will generate and execute blue..."

Using Blue Ocean Strategy Inside Companies
"Many people think BOS is only applicable for creating new markets, outside a company. Though, the Blue Ocean concept can also be applied while working inside companies. Discovering new/breakthrough in..."

BOS: more of the same
"Blue Ocean Strategy is just more of the same old stuff. It takes industry analysis from Porter, differentiation from Trout and the ancient concept of strategy from Sun Tzu. There is not anything new w..."

What is the Four Actions Framework?
"The second tool Kim and Mauborgne are describing is the "Four Actions Framework". This Four Actions Framework can be used to challenge the existing strategic logic and create new value curves by askin..."

What is the Strategy Canvas?
"Kim and Mauborgne introduce in their book an interesting tool they call "The Strategy Canvas". The Strategy Canvas is both a diagnostic and an action framework for building a Blue Ocean Strate..."

How to Avoid Imitation of Blue Ocean Strategy?
"After creating new market/industry, how competitors can be restricted to imitate the same. Complete overlook of competition is possible ?"

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