Blue Ocean Strategy

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Summary

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


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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 BOS pro (...)
14
 
What are Execution Hurdles in BOS?
Stumbling on the web I found there are 4 execution hurdles in BOS:
1. Cognitive
2. Motivation< (...)
12
 
BOS - Three Tiers of Noncustomers
There are three tiers of non-customers that can be transformed into customers. They differ in their relative distance fr (...)
9
 
BOS - Buyer Experience Cycle
In BOS there is a tool called Buyer Experience Cycle. It deals with the experience a buyer has in the va (...)
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1 comments
Blue Ocean Strategic Sequencing - Apple
I think Apple computers have demonstrated remarkable success of Blue Ocean strategies time and again by launching new pr (...)
8
 
2 comments
BOS: Buyer Utility Levers
In BOS, the Buyer Utility Map is a chart that shows the six buy utility levers:
1. Productivity
(...)
8
 
1 comments
The Importance of Innovating
This model is useful because it makes managers think about breaking the rules of competition.
Aristoteles said: "Yo (...)
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1 comments
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 (...)
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2 comments
Not Properly Contested Markets
Some markets are not properly contested, can such a situation be considered as a blue ocean? (...)
6
 
BOS in Less Developed Countries
Kim & Mauborgne: create uncontested market space and make the competition irrelevant.
In the market place in less d (...)
6
 
1 comments
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. (...)
6
 
1 comments
BOS for UPS
UPS currently operates world wide and is at the forefront with electronic shipping technologies and a massive fleet of t (...)
6
 
1 comments
BOS Sequence L.L. Bean
The four steps of strategic sequencing for L.L. Bean's BOS (BOS) begin with buyer utility and the six st (...)
6
 
1 comments
Filtering Blue Ocean Ideas: Strategic Overlays
When developing Blue Ocean Strategies with organisations we find that some of the Blue Ocean ideas generated, while grea (...)
6
 
14 comments
BOS Sequencing for Blockbuster
BLOCKBUSTER is an american-based provider of home video and video game rental services.
- Buyer utility: Blockbuste (...)
5
 
2 comments
BOS versus RBV and MBV
Hi everybody, how does BOS fit in between the major strategy approaches (e.g. Market-based view (Porter) (...)
5
 
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 (...)
5
 
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 Oc (...)
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1 comments
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 (...)
4
 
Verizon Communications Strategic Sequencing
Verizon communications Strategic Sequence:
- Buyer utility-mobile devices unlock exceptional buyer utility in terms (...)
4
 
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 adopt (...)
4
 
1 comments
BOS Research
I am a Phd Student and would like to do a research in BOS. Any research model can you suggest. (...)
4
 
2 comments
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 compet (...)
3
 
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 p (...)
3
 
The BOS (BOS) Sequence of Citibank
This week in a college class I am attending, we are looking at the sequence of the BOS. And more specifi (...)
3
 
Blue Ocean Strategic Sequence for Amazon.com
To create a BOS company there has to be Strategic Sequencing. The components of BOS strategic sequencing (...)
3
 
1 comments
Nestle BOS Sequencing
Nestle's BOS Sequence
Greetings to the group. For an assignment I described a Blue Ocean strategy s (...)
3
 
2 comments
Best Buy - BOS Proposal
I’ve chosen Best Buy to form a Blue Ocean strategy. The idea is to offer music lessons and basic computer courses to acc (...)
3
 
1 comments
Blue Ocean Strategic Sequencing for Delta Airlines
The fourth principle of the Blue Ocean Marketing Strategy is to get the Strategic Sequence of the BOS co (...)
3
 
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: th (...)
3
 
1 comments
How to Start with BOS?
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 (...)
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4 comments
🔥 NEW Validated Instrument for Measuring BOS
I am examining the relationship between the BOS and firm performance in the construction industry using (...)
3
 
5 comments
Blue Ocean Strategic Sequencing on Disney
For school, I have to devise a BOS for a specific business and industry (and post it in a user group suc (...)
3
 
7 comments
eBay's BOS Strategic Sequence
eBay operates in a Blue Ocean today due to their ability to capitalize on their first mover advantage and immense popula (...)
2
 
8 comments
Blue Ocean Strategic Sequence for Blockbuster
The BOS sequencing for Blockbuster is as follows:
- Buyer utility. They created buyer utility by offering convenien (...)
2
 
CSR Part of BOS
Companies may consider Corporate Social Responsibility (CSR) as part of Blue Ocean strategy. Recent research concluded t (...)
2
 
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 Playst (...)
2
 
2 comments
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.
(...)
2
 
1 comments
BOS Success Example in India
Another example of huge success of BOS is 2 wheeler market in India in mid eighties.
Upto mid eight (...)
2
 
First Mover Advantage / Price Maker in BOS
As soon as an organisation identified a new sector/industry as a part of BOS and enter it successfully, they will get a (...)
2
 
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 (...)
2
 
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 b (...)
2
 
Blue Ocean Strategic Sequence for Oreck Direct
Oreck direct has been providing home cleaning products, such as vacuum cleaners and other household cleaning supplies si (...)
1
 
1 comments
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, (...)
1
 
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 m (...)
1
 
3 comments
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 devel (...)
1
 
1 comments
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 prod (...)
1
 
2 comments
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 i (...)
0
 
2 comments
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 Oc (...)
0
 
3 comments

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The top-rated topics about Blue Ocean Strategy. Here you will find the most valuable ideas and practical suggestions.


Visionary Leadership and BOS
I think BOS (BOS) success merely depends on the leadership of the leader and how visionary the leader is (...)
76
 
43 comments

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 durin (...)
71
 
7 comments

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 f (...)
39
 
4 comments

Using BOS Inside Companies
Many people think BOS is only applicable for creating new markets, outside a company. Though, the Blue Ocean concept can (...)
36
 
1 comments

BOS Disadvantages
While most of the participants in this forum are quick to point out the first mover advantage that a BOS creator gets, w (...)
32
 
10 comments

What is a Pioneer-Migrator-Settler Map (PMS Map)?
In BOS, what is a Pioneer-Migrator-Settler Map? I read it is a key tool in the BOS proce (...)
22
 
1 comments

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 e (...)
20
 
15 comments

BOS = Niche Market Strategy
Is BOS not just another phrase for a niche market strategy? They share the common feature of a 'lone player'. (...)
20
 
4 comments

How to Avoid Imitation of BOS?
After creating a new market/industry, how can competitors be restricted to imitate the same. Is a complete overlook by t (...)
20
 
5 comments

BOS in Small Companies
For most small businesses in the current environment, staying alive is a major issue! Simply paying the bills tends to d (...)
19
 
11 comments

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 (...)
19
 
25 comments

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 n (...)
19
 
9 comments

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 (...)
17
 
3 comments

Porter Model vs BOS
Does anyone know about the differences between Porter's (5 Forces, Competitive Advantage) Strategy Model and Blue Ocean (...)
15
 
8 comments

BOS: more of the same
BOS is just more of the same old stuff. It takes industry analysis from Porter, differentiation from Tro (...)
15
 
17 comments

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 t (...)
11
 
8 comments

'Purple' Ocean Strategy
If there are shallow, boiling, highly competitive, bloody RED oceans, and there are deep, calm, clear BLUE oceans of unt (...)
10
 
32 comments

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. Th (...)
8
 
3 comments

BOS of Google
First it was IBM, then Microsoft and now Google. How Google made it to the top ? Adopting BOS ?
Google is a wonderf (...)
7
 
3 comments

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 (...)
7
 
3 comments

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 te (...)
5
 
6 comments

Expert Tips

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Advanced insights about Blue Ocean Strategy. Here you will find professional advices by experts.


Diagnostic Framework for Building a BOS

BOS Formation
Kim and Mauborgne introduce in their book an interesting tool they call "The Strategy Canvas". The Strategy Canvas is b (...)

Challenging the Existing Strategic Logic

BOS Tools
A great BOS-tool Kim and Mauborgne described is the "Four Actions Framework". This Four Actions Framework can be used to (...)

How to Find Good Product Ideas? List of 10 Approaches

Discovering New-Product Ideas, Creative Approaches
In his book “Product Leadership: Creating and Launching Superior New Products”, Robert Cooper suggests following ten way (...)

BOS Tools, Frameworks and Methodologies

Summaries of all BOS Tools
Summaries of 12 BOS tools by Kim & Mauborgne: 1. PMS Map – Pioneer-Migrator-Settler Map. A key tool in (...)

Innovation Pitfalls

Avoiding Innovation Traps
Harvard Professor R. Moss Kanter describes 4 common innovation mistakes and corresponding remedies (HBR Nov 2006): 1. S (...)

The Value Creation Logic Types

Discovering Blue Oceans
Based on Stabell and Fjeldstad’s value creation logics, Norman T. Sheehan and Ganesh Vaidyanathan are introducing a uniq (...)

How to Find or Create A Blue Ocean?

Approaches to Reconstruct Market Boundaries
In their book: BOS: How to Create Uncontested Market Space and Make the Competition Irrelevant, Kim and (...)

Recent Innovation Trends | New Innovation Types

Open innovation, User Innovation, Value Innovation, Bottom-up Innovation
Roland Bel (2012) outlines and explains four types of innovations that have become more and more important since the las (...)

How to Detect Consumer Needs that are Unmet?

Product Innovation, New Product Development, Innovation Strategy
In their article New Business Models in Emerging Markets" (Harvard Business Review, January-February 2011), Matthew J. E (...)

Pitfalls and Obstacles in Product Development Strategy

Product Development, Product Portfolio Management
Although product development can be an important growth strategy, it is necessary to keep in mind that several factors t (...)

Value Innovation Strategy Best Practices

Understanding the Fundamentals of BOS
The fundamentals of the "Blue Ocean" concept can be found in an earlier HBR artice by W. C. Kim and R. Mauborgne (1997) (...)

A Closer Look Into Customer Value

Customer Value Analysis, Strategic Marketing, Innovation Strategy
It is often argued that customer value is required for staying competitive and successful as organization. But in what w (...)

How to Think Differently in BOS and Innovation?

How to Be Innovative
Strategy is always related with risk, due to market volatility. Also today´s volatility is increasing very fast. So inno (...)

How to Determine the Right PRICING?

Steps to Strategic Pricing
One major part of the BOS is the Strategic Pricing. To help managers find the right price for a product/ (...)

How Can Incumbents Respond to Disruptors?

5 Strategic Options in Reaction to Disruptors
In recent years, the challenges to incumbent majors across industries have come mainly from low-cost competitors and fr (...)

How to Lead an Innovation Team

Best Practices, Innovation Team Management
In order to become a great innovation team leader, Ram Charan suggests in the article "P&G's Innovation Culture" (strate (...)

In Which Direction Should we Grow our Portfolio?

Portfolio Strategy, Innovation Strategy
According to Professor Aneel G. Karnani in 'Mastering Strategy', there's no standard way to gain market value for all bu (...)

Innovating by Reconsidering Value Delivery

Fundamental Innovation
When innovating their business model, companies need to reconsider their value proposition from all perspectives. One of (...)

Classes of Innovation | Sources of Innovation

Innovation, Creativity, Organizational Innovativeness, Lateral Thinking, Out of the Box Thinking, BOS
TWO CLASSES OF INNOVATION Innovation can be triggered or enabled by two broad classes: KNOWLEDGE PUSH: Innovation trig (...)

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

Strategic Innovation, Strategic Decision-making, Strategic Experimenting, Experiments, Strategic Testing, Innovation Tes
The probability of success of a major innovation is difficult to assess. Statistics and other datasets only provide info (...)

Why Large Firms are Having Difficulties to Deal with Disruptive Innovations

Innovation Management
Christensen explains why many firms, especially large firms, have trouble with adapting and thus with surviving when dea (...)

What Makes a Company Innovative?

Innovation Best Practices, R&D Best Practices, Corporate Innovation
A futurethink 2006 Innovation Tracker Survey mentions: - Ability to create a climate that continuously fosters innovat (...)

Designing Complex Products or Systems Through Iterative Rapid-cycle Prototyping

Design Thinking, Disruptive Innovation, BOS, Introducing Complex Systems, Co-Creation
Today, organizations are increasingly developing and designing new and complex products or systems. In other words, the (...)

Entrepreneurial Strategies in Emerging Markets

Emergent Strategy, Entrepreneurship, Strategic Innovation
Chanvatipsakul and Wongsurawat (2013) examined the reasons why SMEs are successful in entering emerging markets while bi (...)
Information Sources

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Various sources of information regarding Blue Ocean Strategy. Here you will find powerpoints, videos, news, etc. to use in your own lectures and workshops.


Introduction to BOS

Comprehensive Presentation Introducing BOS
Comprehensive presentation introducing BOS. Topics: - Blue Ocean Vs. Red Ocean Strategy - BOS Tools - (...)

Conversation with Chan Kim and Mauborgne

Interview
Interview with W. Chan Kim and Renee Mauborgne. 10 questions and answers about BOS and ROS. (...)

Co-opetition, PARTS and Changing the Strategic Game

Business Strategy, Innovation Strategy
Comprehensive presentation about the concept of co-opetition based on Brandenburger and Nalebuff (1998), including the f (...)

First Introduction to BOS

Understanding the Definitions of Blue and Red Ocean Strategy
Short visual introduction of the 2 types of strategy as conceived by Kim and Mauborgne. BOS is a way to (...)

Techniques for Entrepreneurial Thinking

Entrepreneurship, Critical Thinking, Creative Thinking, Lateral Thinking, Entrepreneurial Thinking
This presentation elaborates on the different types of thinking for successful entrepreneurship. The presentation includ (...)

Reinventing your Business Model

Business Model Change, Strategic Innovation
A presentation that clearly explains the concept of changing business models according to Kagermann, Johnson and Christe (...)

Blue Ocean Theory Success Stories

Short Introduction and Success Stories of BOS
In world’s business today many companies are swimming in the red ocean of bloody competition. To obtain profitable grow (...)

Blue and Red Ocean Strategy Diagram

Strategic Innovation
Download and edit this 12manage PowerPoint graphic for limited personal, educational and business use. Republishing in (...)

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