|
B. Sai sastha
Consultant, India
|
Disadvantages of a Blue Ocean Strategy
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 the cost in case the strategy flops. Given today's global economic conditions and aversion of companies towards cost & risk, can BOS still be a valid business strategy?
X
Join 12manage
It's free
Welcome to the forums of 12manage. In this discussion we exchange ideas about Disadvantages of a Blue Ocean Strategy.
Sign up and discover more than 900 centers about management and business administration.
Log in
X
Join 12manage
It's free
Welcome to the forums of 12manage. In this discussion we exchange ideas about Disadvantages of a Blue Ocean Strategy.
Sign up and discover more than 900 centers about management and business administration.
Log in
| |
|
|
| |
|
Nedyalko Terziev
Student (MBA), Singapore
|
|
Going BO Doesn't Mean You Throw Away your Existing Products
I was present at a recent lecture by Dr. Kim and one of the things he emphasized is that every company needs a portfolio of RO and BO strategies. BO moves are inherently riskier than RO ones, but even with RO you run with the risk of disruptive innovation happening, proving your products obsolete.
Thus, Dr. Kim argued, to minimize the risk for the enterprise you need a mix of both types of strategies- the lower riskiness of RO strategies and the high potential of BO ones.
|
| |
|
Andrew Nelson
CEO, Australia
|
|
BOS is All About Managing First Mover Risk
I think you have a valid point that many BOS writers don't use the language of the risks of first mover advantage, but to be fair this is because every step in the process is about managing the risks associated with strategy formulation, validation and execution in a new market.
Remember that much of what the professors have drawn together in BOS is not "new" but what they have done is give us a robust end to end model for the systematic identification and development of first mover strategy.
|
| |
|
KATHRYN STEINER, MBA
Entrepreneur, United States
|
|
Protection Against BOS Disadvantages
The only way to compete in a global economy is through differentiation and low cost. There are restrictions and rules that need to be regarded, and some say possibly modified, that inhibit differentiation and low cost in a particular country. Intels "portfolio of patents" which they "vigorously protect," is one example of how a company ensures their strength through innovation, within the BOS strategy. See Intel Corporation Innovation Vice President Peter Cleveland on C-Span.
|
| |
|
HARWINDAR SINGH
Business Consultant, Malaysia
|
|
BOS is not for Everyone
What I have observed is that companies which are in industries with growth potential, dynamic technologies and are more impacted by externalities are the ones that would stand to gain most from BOS in (...)
|
| |
|
Dominique VOMSCHEID
Business Consultant, France
|
|
Dealing with Blue Ocean Strategy Disadvantages
To determine a strategy is always risky, but needed if you want to get out the competition; but specially for first movers, I recommend to read 'Inside the Tornado: Strategies for Developing, Leveragi (...)
|
| |
|
Jaap de Jonge
Editor, Netherlands
|
|
Disadvantages of Blue Ocean Strategy and How to Avoid Them
Blue Ocean Strategy does offer immense potential for creating new markets and avoiding intense competition, but it also has several major disadvantages too. Every investor knows there is no such thing (...)
|
| |
|
Ceferino Dulay, Jr., Philippines
|
|
Risk of Being in Business
Risk is always present in any business. The benefits one gets out of being "first mover" will really compensate the cost. Even a company that is not willing to take risk and stay in the red ocean is a (...)
|
| |
|
KATHRYN STEINER, MBA
Entrepreneur, United States
|
|
Red and Blue Ocean Risk Must Be Understood and Minimized
Today I heard that the importance is understanding the trends that are emerging. That will yield successful results and progress. Essentially BOS, versus riding a current wave and developing and intro (...)
|
| |
|
Pasquini
ICT Consultant, Italy
|
|
Discovery Driven Planning
I read 'Discovery-Driven Growth' written by Rita Gunther McGrath and Ian C. Macmillan.
That could be a good way to manage/reduce risk about new initiative. (...)
|
| |
|
Thomas Czekala
Management Consultant, Switzerland
|
|
Blue Ocean Strategy - Chances and Risks
Blue or red ocean strategies are like revolution and evolution: if you survive the revolution and take over the "market" you are a hero, but if you lose the revolution you are dead.
Really successful (...)
|
| |
|
Yves Leduc
Consultant, Belgium
|
|
Blue Ocean Strategy Disadvantages: No Track Record
I confirm risk is always present. In a "new" market, it may take longer time to convince your potential customers about the benefits of your product or service offer, even if it is obvious for all par (...)
|
View all comments
|
Log in
Comments by rating▼