Analysis Of Blue Ocean Strategy By W. Chan Kim And Renee Mauborgne

1231 WordsOct 5, 20165 Pages
Introduction There are abundance of business books trying to explain the success or failure of companies in terms of the characteristics of the companies, their leadership capability, great products ideas etc. But success of a company is never perpetual and follows a cycle of high and low performance. More often than not, these companies perform worse than industry, or fail to sustain the growth for a long time. For example, Hewlett-Packard performed better than market for a long enough time, but did poorly soon afterwards with same the good products and leadership (Page 10). Therefore, the company itself is not a very good unit to measure success or failure; it’s the strategies the companies take, which decide the success or failure of the company. And the “Blue Ocean” Strategy, the term introduced in the book “Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant”, by W. Chan Kim and Renée Mauborgne, is one, which ensures a company to have a long stretch of uncontested success away from the competition. Key Concepts Red Ocean: A market space filled with several players competing with each other for profit and market share is a Red Ocean. Blue Ocean: An unexplored and unknown market space with no competition is a Blue Ocean. Value Innovation: Offering greater value to customers by reducing factors the industry competes on, and raising and offering unoffered factors, those the customer values more. Main Propositions Most of the times,
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