Blue Ocean is Economics Failure

Blue Ocean Strategy
Knowledge Center

Best Practices
Mauricio Crippa
Manager, Brazil

Blue Ocean is Economics Failure

In my opinion, the idea of a Blue Ocean conflicts with and hurts the basic principles of economics which results in all economic profits tending to zero. Whenever an industry presents abnormal earnings, it will attract competitors. Even the creation of barriers to these new entrants is costly and soon, if the firm isn't able to create sustainable competitive advantages, the ocean will turn into red.

  Ceferino Dulay, Jr.
Philippines
 

Blue Ocean is Economics Failure

You're right in a way if you stay put after you entered a new playing field. But the idea is that you keep on innovating and if that's the culture you have developed in your organization, your "would-be competitors" will end up simply running catching up and never get to you.

  Mauricio Crippa
Manager, Brazil
 

Old Wine in a New Bottle?

Therefore, what is that new from old Schumpeterian innovative development? Or even from Porter's differentiation? I do believe the search for a market where competition is sustainably irrelevant (as precognized at the blue box above) is the search for the Eldorado (unless you're a state monopoly, of course!).
That doesn't mean I disagree from your point, it's just about the concept of BOS that, for me, is just another Harvard's "consulting seller" book.

  BNYa
Consultant, India
 

Stagnant BOS

Is the monopolistic stance of BOS detrimental to development and progress and to ultimate benefits to end consumers? Fo...

  Mauricio Crippa
Manager, Brazil
 

Stagnant BOS

For sure. The "invisible hand" doens't act on mopolistic/oligopolistic markets. Therefore, if economic profits do not tr...

  Dean Gamache
Student (University), United States
 

Blue Ocean Strategy is Necessary in Business

Isn't the whole purpose of the Blue Ocean strategy to gain a competitive edge by coming up with something new and creati...

  Nedyalko Terziev
Student (MBA), Singapore
 

Blue Ocean Strategy Does Not Really Contradict Economic Theory

Hi Mauricio, standard economic theory teaches that economic profits go down to zero in the long term and implicitly assu...

 

More on Blue Ocean Strategy:
Summary
Forum
Why is it Called 'Blue' Ocean Strategy?
BOS is More of the Same
Execution Hurdles in Blue Ocean Strategy
The Four Actions Framework for Blue Ocean Strategy
Porter Model vs Blue Ocean Strategy
Filtering Blue Ocean Ideas: Strategic Overlays
Blue Ocean Strategy - Three Tiers of Noncustomers
BOS and ROS are Both Supplier Centric
How to Start with Blue Ocean Strategy?
Blue Ocean Strategy - Buyer Experience Cycle
Blue Ocean Strategy: Buyer Utility Levers
BOS / ROS Isn't a Strategy
First Mover Advantage / Price Maker in BOS
Use CSR as Part of your Blue Ocean Strategy
Importance of BOS is Focus on Innovating
BOS in Less Developed Countries
🔥Validated Instrument for Measuring Blue Ocean Strategy
Best Practices
Visionary Leadership and Blue Ocean Strategy
Purple Ocean Strategy
Blue, Green or Even Violet Ocean Strategies
Strategic Sequence: Best Practices and Pitfalls
Blue Ocean Strategy Disadvantages
A BOS is Creating a New Mental Category
What is a Pioneer-Migrator-Settler Map (PMS Map)?
BOS = Niche Market Strategy
Differences in BOS / ROS Cultures
How to Avoid Imitation of Blue Ocean Strategy?
Blue Ocean Strategy in Small Companies
Can a Blue Ocean Eventually Turn Into a Red Ocean?
Six Paths to Moving from Red to Blue Ocean
Blue Ocean Strategy of Google
Blue Ocean Strategy - Apple
Blue Ocean Strategy for UPS
Blue Ocean Strategy Sequence L.L. Bean
👀Blue Ocean is Economics Failure
Blue Ocean Strategy Sequencing for Blockbuster
Blue Ocean Strategy Strategic Sequence - EBay
Strategic Sequencing for Adult Education / Learning
Blue Ocean Strategic Sequencing for US Airways?
Blue Ocean Strategy - Best Buy
Blue Ocean Strategic Sequence for Amazon.com
Blue Ocean Strategic Sequence for Barnes and Noble
Blue Ocean Strategic Sequencing - Dell
Blue Ocean Strategic Sequencing for Delta Airlines
Blue Ocean Strategic Sequencing on Disney
Blue Ocean Strategy Sequencing - Nestle
The Blue Ocean Strategy (BOS) Sequence of Citibank
Blue Ocean Strategic Sequence for Blockbuster
Blue Ocean Strategic Sequencing in Office Furniture
Special Interest Group

Do you have a keen interest in Blue Ocean Strategy? Become our SIG Leader

Blue Ocean Strategy
Knowledge Center



About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
2022 12manage - The Executive Fast Track. V15.8 - Last updated: 5-7-2022. All names of their owners.