Blue Ocean is Economics Failure




Blue Ocean Strategy
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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.
 

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2
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.

 
2
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.

 
2
BNYa
Consultant, India
 

Stagnant BOS

Is the monopolistic stance of BOS detrimental to development and progress and to ultimate benefits t... Sign up

 
2
Mauricio Crippa
Manager, Brazil
 

Stagnant BOS

For sure. The "invisible hand" doens't act on mopolistic/oligopolistic markets. Therefore, if econom... Sign up

 
1
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 some... Sign up

 
3
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... Sign up

   

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