Blue Ocean Strategy

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


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 -


Special Interest Group - Blue Ocean Strategy


Special Interest Group (907 members)


Forum - Blue Ocean Strategy  

Discussions about 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 (...)
 
 
 
 
  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 (...)
 
 
 
 
  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 proce (...)
 
 
 
 
  BOS = Niche Market Strategy
Is BOS not just another phrase for a strategy? They share the common feature of a 'lone player'. (...)
 
 
 
 
  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 (...)
 
 
 
 
  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 (...)
 
 
 
 
  BOS: more of the same
Blue Ocean Strategy is just more of the same old stuff. It takes industry analysis from Porter, differentiation from Tro (...)
 
 
 
 
  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 pro (...)
 
 
 
 
  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. Reso (...)
 
 
 
 
  'Purple' Ocean Strategy
If there are shallow, boiling, highly competitive, bloody RED oceans, and there are deep, calm, clear BLUE oceans of unt (...)
 
 
 
 
  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 fr (...)
 
 
 
 
  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 va (...)
 
 
 
 
  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 (...)
 
 
 
 
  Blue Ocean Strategy: Buyer Utility Levers
In Blue Ocean Strategy, the Buyer Utility Map is a chart that shows the six buy utility levers: 1. Productivity 2. Sim (...)
 
 
 
 
  Blue Ocean Strategic Sequencing - Apple
I think Apple computers have demonstrated remarkable success of Blue Ocean strategies time and again by launching new pr (...)
 
 
 
 
  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 (...)
 
 
 
 
  The Importance of Innovating
This model is useful because it makes managers think about breaking the rules of competition. Aristoteles said: "You ca (...)
 
 
 
 
  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 (...)
 
 
 
 
  Not Properly Contested Markets
Some markets are not properly contested, can such a situation be considered as a blue ocean? (...)
 
 
 
 
  Blue Ocean Strategy for UPS
UPS currently operates world wide and is at the forefront with electronic shipping technologies and a massive fleet of t (...)
 
 
 
 
  BOS in Less Developed Countries
Kim & Mauborgne: create uncontested market space and make the competition irrelevant. In the market place in less devel (...)
 
 
 
 
  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 st (...)
 
 
 
 
  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 (...)
 
 
 
 
  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. (...)
 
 
 
 
  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 (...)
 
 
 
 
  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 (...)
 
 
 
 
  Blue Ocean Strategy Sequencing for Blockbuster
BLOCKBUSTER is an american-based provider of home video and video game rental services. - Buyer utility: Blockbuster al (...)
 
 
 
 
  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. (...)
 
 
 
 
  Blue Ocean Strategy versus RBV and MBV
Hi everybody, how does Blue Ocean Strategy fit in between the major strategy approaches (e.g. Market-based view () and ) (...)
 
 
 
 
  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 (...)
 
 
 
 
  Verizon Communications Strategic Sequencing
Verizon communications : - Buyer utility-mobile devices unlock exceptional buyer utility in terms of convenience and en (...)
 
 
 
 
  Nintendo's Wii BOS Strategic Sequence
Get the right," is an important part of the Blue Ocean strategy. Buyer utility, price, cost and adoption. Nintendo has (...)
 
 
 
 
  Nestle Blue Ocean Strategy Sequencing
Nestle's Blue Ocean Strategy Sequence Greetings to the group. For an assignment I described a Blue Ocean strategy seque (...)
 
 
 
 
  Blue Ocean Strategic Sequence for Amazon.com
To create a Blue Ocean Strategy company there has to be . The components of BOS strategic sequencing are: buyer utility, (...)
 
 
 
 
  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 suc (...)
 
 
 
 
  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 (...)
 
 
 
 
  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 specifi (...)
 
 
 
 
  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 (...)
 
 
 
 
  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 acc (...)
 
 
 
 
  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 alte (...)
 
 
 
 
  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 (...)
 
 
 
 
  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 co (...)
 
 
 
 
Hot 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 (...)
 
 
 
 
  Blue Ocean Strategy Success Example in India
Another example of huge success of blue ocean strategy is 2 wheeler market in India in mid eighties. Upto mid eighties (...)
 
 
 
 
  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 (...)
 
 
 
 
  Blue Ocean Strategic Sequence for Blockbuster
The BOS sequencing for Blockbuster is as follows: - Buyer utility. They created buyer utility by offering convenience a (...)
 
 
 
 
  eBay's Blue Ocean Strategy Strategic Sequence
eBay operates in a Blue Ocean today due to their ability to capitalize on their and immense popularity. The BOS sequenc (...)
 
 
 
 
  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. Bu (...)
 
 
 
 
  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 (...)
 
 
 
 
  CSR Part of Blue Ocean Strategy
Companies may consider Corporate Social Responsibility (CSR) as part of Blue Ocean strategy. Recent research concluded t (...)
 
 
 
 
  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 (...)
 
 
 
 
  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 (...)
 
 
 
 
  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 (...)
 
 
 
 
  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, (...)
 
 
 
 
  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 (...)
 
 
 
 
  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 (...)
 
 
 
 
  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 (...)
 
 
 
 
  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 (...)
 
 
 
 
  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 ob (...)
 
 
 
 

Best Practices - Blue Ocean Strategy

Here you find the most valuable discussions from the past.


  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 (...)
 
 
 
 
  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 (...)
 
 
 
 
  Blue Ocean Strategy Disadvantages
While most of the participants in this forum are quick to point out the that a BOS creator gets, we need to be aware of (...)
 
 
 
 
  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 t (...)
 
 
 
 
  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 (...)
 
 
 
 
  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 d (...)
 
 
 
 
  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 (...)
 
 
 
 
  Porter Model vs Blue Ocean Strategy
Does anyone know about the differences between Porter's (5 Forces, Competitive Advantage) Strategy Model and Blue Ocean (...)
 
 
 
 
  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 (...)
 
 
 
 
  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 c (...)
 
 
 
 

Expert Tips - Blue Ocean Strategy

Here you will find advices by experts.


 

Diagnostic Framework for Building a Blue Ocean Strategy

Blue Ocean Strategy Formation (...)
 
 
 

Challenging the Existing Strategic Logic

Blue Ocean Strategy Tools (...)
 
 
 

How to Find Good Product Ideas? List of 10 Approaches

Discovering New-Product Ideas, Creative Approaches (...)
 
 
 

Blue Ocean Strategy Tools, Frameworks and Methodologies

Summaries of all BOS Tools (...)
 
 
 

Innovation Pitfalls

Avoiding Innovation Traps (...)
 
 
 

The Value Creation Logic Types

Discovering Blue Oceans (...)
 
 
 

How to Find or Create A Blue Ocean?

Approaches to Reconstruct Market Boundaries (...)
 
 
 

Recent Innovation Trends | New Innovation Types

Open innovation, User Innovation, Value Innovation, Bottom-up Innovation (...)
 
 
 

How to Detect Consumer Needs that are Unmet?

Product Innovation, New Product Development, Innovation Strategy (...)
 
 
 

Pitfalls and Obstacles in Product Development Strategy

Product Development, Product Portfolio Management (...)
 
 
 

Value Innovation Strategy Best Practices

Understanding the Fundamentals of Blue Ocean Strategy (...)
 
 
 

A Closer Look Into Customer Value

Customer Value Analysis, Strategic Marketing, Innovation Strategy (...)
 
 
 

How to Think Differently in Blue Ocean Strategy and Innovation?

How to Be Innovative (...)
 
 
 

How to Determine the Right PRICING?

Steps to Strategic Pricing (...)
 
 
 

How Can Incumbents Respond to Disruptors?

5 Strategic Options in Reaction to Disruptors (...)
 
 
 

How to Lead an Innovation Team

Best Practices, Innovation Team Management (...)
 
 
 

In Which Direction Should we Grow our Portfolio?

Portfolio Strategy, Innovation Strategy (...)
 
 
 

Innovating by Reconsidering Value Delivery

Fundamental Innovation (...)
 
 
 

Classes of Innovation | Sources of Innovation

Innovation, Creativity, Organizational Innovativeness, Lateral Thinking, Out of the Box Thinking, Blue Ocean Strategy (...)
 
 
 

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

Strategic Innovation, Strategic Decision-making, Strategic Experimenting, Experiments, Strategic Testing, Innovation Tes (...)
 
 
 

Why Large Firms are Having Difficulties to Deal with Disruptive Innovations

Innovation Management (...)
 
 
 

What Makes a Company Innovative?

Innovation Best Practices, R&D Best Practices, Corporate Innovation (...)
 
 
 

Designing Complex Products or Systems Through Iterative Rapid-cycle Prototyping

Design Thinking, Disruptive Innovation, Blue Ocean Strategy, Introducing Complex Systems, Co-Creation (...)
 
 
 

Entrepreneurial Strategies in Emerging Markets

Emergent Strategy, Entrepreneurship, Strategic Innovation (...)
 
 

Resources - Blue Ocean Strategy

Here you find powerpoint presentations, micro-learning videos and further information sources.


Introduction to BOS

Comprehensive Presentation Introducing BOS (...)
 

Conversation with Chan Kim and Mauborgne

Interview (...)
 

Co-opetition, PARTS and Changing the Strategic Game

Business Strategy, Innovation Strategy (...)
 

First Introduction to Blue Ocean Strategy

Understanding the Definitions of Blue and Red Ocean Strategy (...)
 

Techniques for Entrepreneurial Thinking

Entrepreneurship, Critical Thinking, Creative Thinking, Lateral Thinking, Entrepreneurial Thinking (...)
 

Reinventing your Business Model

Business Model Change, Strategic Innovation (...)
 

Blue Ocean Theory Success Stories

Short Introduction and Success Stories of BOS (...)
 

Blue and Red Ocean Strategy Diagram

Strategic Innovation (...)
 

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


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