Blue Ocean Strategy

Knowledge Center

   

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

Contents

Premium

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

  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 Special Interest Group


Special Interest Group (951 members)


Blue Ocean Strategy Forum  

Recent topics

  '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 a...
     
 
  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...
     
 
  How to Start with Blue Ocean Strategy?
I am in the process of starting up a company. I was advised to use Blue Ocean strategy but there is a lot of information...
How do I start develo...
     
 

Best Practices - Blue Ocean Strategy
  Visionary Leadership and Blue Ocean Strategy
I think Blue Ocean Strategy (BOS) success merely depends on the leadership of the leader and how visionary the leader is, and how far ahead the...
     
 
  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. O...
     
 
  What is a Strategic Sequence?
According to Kim and Mauborgne (2005) a BOS will only work if it’s formulated in the right strategic sequence. Without fulfilling one of these, the pl...
     
 
  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...
     
 
  Blue Ocean Strategy Disadvantages
While most of the participants in this forum are quick to point out the first mover advantage tha...
     
 
  What is a Pioneer-Migrator-Settler Map (PMS Map)?
In Blue Ocean Strategy, what is a Pioneer-Migrator-Settler Map? I read it is a key tool in the Blue Ocean Strategy process that involves plotting each...
     
 



All you need to know about management


  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 comp...
     
 
  How to Avoid Imitation of Blue Ocean Strategy?
After creating a new market/industry, how can competitors be restricted to imitate the same. Is a complete overlook by the competition possible ?...
     
 
  BOS = Niche Market Strategy
Is BOS not just another phrase for a niche market strategy? They share the common feature of a 'lone pl...
     
 
  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?...
     
 
  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 ...
     
 
  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...
     
 
  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...
     
 
  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 ...
     
 
  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?...
     
 
  What is the Four Action Framework?
I am looking for more information on the 4 action framework. I found that it's a key tool in the Blue Ocean Strategy process made up of the four strat...
     
 
  What are Execution Hurdles in Blue Ocean Strategy?
Stumbling on the web I found there are 4 execution hurdles in Blue Ocean Strategy:
1. Cognitive
2. Motivation
3. Resource
4. Polit...
     
 
  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...
     
 
  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<...
     
 
  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...
     
 
  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...
     
 
  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 inf...
     
 
  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), ...
     
 
  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 c...
     
 
  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 i...
     
 
  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 busin...
     
 
  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...
     
 
  Not Properly Contested Markets
Some markets are not properly contested, can such a situation be considered as a blue ocean?...
     
 
  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. ...
     
 
  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...
     
 
  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 th...
     
 
  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 vid...
     
 
  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....
     
 
  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, ...
     
 
  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 compe...
     
 
  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 s...
     
 
  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. Ple...
     
 
  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 yo...
     
 
  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 offeri...
     
 
  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:...
     
 
  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 pref...
     
 
  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...
     
 
  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-...
     
 
  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 Playstati...
     
 
  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
     
 
  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....
     
 
  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 customer...
     
 
  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 (
     
 
  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 experi...
     
 
  Verizon Communications Strategic Sequencing
Verizon communications Strategic Sequence:
- Buyer utility-mobile devices unlock exceptio...
     
 
  Nintendo's Wii BOS Strategic Sequence
Get the Strategic Sequence right," is an important part of the Blue Ocean strategy. Buyer util...
     
 
  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.
...
     
 
  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<...
     
 
  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 ...
     
 
  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 p...
     
 
  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 dom...
     
 
  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-cu...
     
 
  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...
     
 
  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 ...
     
 
  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 thei...
     
 
  Blue Ocean Strategic Sequence for Amazon.com
To create a Blue Ocean Strategy company there has to be Strategic Sequencing. The components o...
     
 
  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 d...
     
 
  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, peddl...
     
 
  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 the...
     
 
  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...
     
 
  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 ...
     
 
  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 opti...
     
 

Expert Tips - Blue Ocean Strategy
 

Challenging the Existing Strategic Logic

 
 
 

Diagnostic Framework for Building a Blue Ocean Strategy

 
 
 

How to Find Good Product Ideas? List of 10 Approaches

 
 
 

Blue Ocean Strategy Tools, Frameworks and Methodologies

 
 
 

Innovation Pitfalls

 
 
 

The Value Creation Logic Types

 
 
 

Recent Innovation Trends | New Innovation Types

 
 
 

How to Detect Consumer Needs that are Unmet?

 
 
 

How to Find or Create A Blue Ocean?

 
 
 

Pitfalls and Obstacles in Product Development Strategy

 
 
 

A Closer Look Into Customer Value

 
 
 

How to Determine the Right PRICING?

 
 
 

Value Innovation Strategy Best Practices

 
 
 

How to Think Differently in Blue Ocean Strategy and Innovation?

 
 
 

How Can Incumbents Respond to Disruptors?

 
 
 

Innovating by Reconsidering Value Delivery

 
 
 

Classes of Innovation | Sources of Innovation

 
 
 

In Which Direction Should we Grow our Portfolio?

 
 
 

How to Design Experiments to Support Decision-making on Strategic Innovations

 
 
 

How to Lead an Innovation Team

 
 
 

What Makes a Company Innovative?

 
 
 

Why Large Firms are Having Difficulties to Deal with Disruptive Innovations

 
 
 

Designing Complex Products or Systems Through Iterative Rapid-cycle Prototyping

 
 
 

Entrepreneurial Strategies in Emerging Markets

 
 



Advance yourself in business administration and management



Resources - Blue Ocean Strategy

Introduction to BOS

 

Conversation with Chan Kim and Mauborgne

 

Co-opetition, PARTS and Changing the Strategic Game

 

First Introduction to Blue Ocean Strategy

 

Techniques for Entrepreneurial Thinking

 

Reinventing your Business Model

 

The Importance of Noncustomers

 

Blue Ocean Theory Success Stories

 

Blue and Red Ocean Strategy Diagram

 
 

News about Blue Strategy


     
 

News about Red Strategy


     
 

Videos about Blue Strategy


     
 

Videos about Red Strategy


     
 

Presentations about Blue Strategy


     
 

Presentations about Red Strategy


     
 

Books about Blue Strategy


     
 

Books about Red Strategy


     
 

More about Blue Strategy


     
 

More about Red Strategy


     



Accelerate your management career



Compare with Blue Ocean Strategy:  Business Process Reengineering  |  Product/Market Grid  |  Core Competence  |  BCG Matrix  |  McKinsey Matrix  |  Resource-Based View  |  Disruptive Innovation  |  Forget Borrow Learn  |  Rule of Three  |  Strategic Types


Return to Management Hub: Marketing  |  Strategy


More Management Methods, Models and Theory

Special Interest Group Leader
Andrew Nelson
CEO

 


About 12manage | Advertising | Link to us / Cite us | Privacy | Suggestions | Terms of Service
© 2018 12manage - The Executive Fast Track. V15.0 - Last updated: 10-12-2018. All names ™ of their owners.