Blue Ocean Strategy

Blue Ocean Strategy has been developed by Chan Kim and Renee Mauborgne’s in 2005 and became the most known strategy in worldwide. This strategy recommends that companies should stop to compete in existing market ( red ocean), should try to create new market (blue ocean) where there are no exist competitors yet.

Once a company’s strategy has been elaborated on, it is necessary to analyze it and to choose the strategy that suits best for the company’s intention. First of all, it is decisive to indicate the business’ competitive advantage in order to understand in which way the company can compete within its competitive set. Additionally, decisions concerning the corporate-level strategy such as the company’s profile, products,

There are many strategies that organizations can incorporate in today’s business environment. An organization can decide to take on a low-cost provider strategy, a focused low-cost strategy, broad differentiation strategy, focused differentiation strategy, and/or a best-cost provider strategy. While all of them have their own unique features and can offer a competitive advantage over its rivals, Competitive Shoes, Inc. decided to incorporate the best-cost strategy into its organization in order to compete against it rivals. By incorporating the best-cost strategy into its organization, Competitive Shoes Inc. felt that they could stay

Each organization has or should have a distinct business strategy to ensure they reach their desired goals and objectives. Uniquely, the business strategy, or competitive strategy, should include their target consumers, the product or service desired by their consumers, and their roadmap to remain competitive in the market (Parnell, 2014). However, strategies may be difficult to determine when the organization is engrossed in one industry, but decides to dip their toe in another industry (Bethel, 2016).

Blue Ocean Strategy Paper Establishments are not eternally remaining on the market in a productive way. It is normal to find industries that make wise decisions, but there is also the possibility that the decisions taken have not been the best. The mission as marketing managers is to discover the wise decision that would mark not only within the industry, but also in the market with the purpose of repeating that decision in a clever and a systematic way. Redbox creates their new brainchild in 2002 McDonald's Ventures, LLC. The original idea was that two important services were combined in the movie rental

Blue ocean strategy, as a business method, is about company creating a new market or industry where there is no competitor. Companies play not by traditional rules, never use the competition as a benchmark. They could ether create greater value for customers at a higher cost or create reasonable value at a lower cost. Thus, the name of the program – find a blue ocean, a new ocean to swim in.

The red ocean represents the existing market space. Companies in red oceans most often pursuecompetitive-based strategies, aiming to get a bigger share of the market from their competitors - thus the bloody competition - red ocean metaphor. This approach is called the structuralist view of strategy, meaning that companies adapt their behavior (strategy) to the existing industry 's conditions.

The kind of competition market described previously is an example of a Red Ocean Strategy. The market is oversaturated with companies

Blue Ocean Education, LLC is an educational service company located in Pleasanton, CA. Our company provides foreign students (mainly from China) with accommodations information and school service assistance. Our company anticipates in August this year, over 400 foreign students will use our service to help assist them in the U.S. If you are reading this try to remember when you step into a foreign place, and everything was unfamiliar. Did you have difficulty adapting to the new environment? Now that you stayed here in the U.S and have gained the experience, do you want to help new foreign students getting started? Blue Ocean is looking for highly motivated individuals to serve as a professional assistant to newly foreign students.

We target a wide variety of foreign companies as major customers and almost all of our students are the people who are working in China. We only provide Chinese teachers

W. Chan Kim (chan.kim@insead.edu) is the Boston Consulting Group Bruce D. Henderson Chair Professor of Strategy and International Management at Insead in Fontainebleau, France. Renée Mauborgne (renee.mauborgne@ insead.edu) is the Insead Distinguished Fellow and a professor of strategy and management at Insead. This article is adapted from their forthcoming book Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant (Harvard Business School Press, 2005).

This is done by creating a leap in value both for the buyers as well as for the organization thereby creating a new and uncontested market space. Companies left out in the red ocean usually follow a conventional approach, running to beat competition by creating a defensible position in the current market space order.

This strategy seem challenging since this strategy focus on capture new market and new demand, which it’s required extra efforts in term of innovation of products and promotion in order to make customers realize about their product. Even there are some discussions about the blue ocean strategies; however, based on my review on customers comment said that the practical guidance on how to create them is limited. Therefore, without usual analytic framework which can be used as guidelines to create blue oceans as well as effective principles to manage risk, creating blue oceans viewed as too risky for managers to pursue as strategy for their company.

There are five generic business strategies that companies choose from when trying to successfully compete within their respective industries. This is the first choice a company must make, even before deciding an overall strategy. These generic business strategies include low-cost provider strategy, broad differentiation strategy, best-cost provider strategy; focused strategy based on low costs, and focused strategy based on differentiation. These strategies have many advantages as well as disadvantages. Choosing which one to use depends on what market position a company wants to pursue. Deciding to be more offensive or defensive also plays a role in choosing a

There are some tool produce to help implement blue ocean strategy. The Eliminate-Reduce-Raise-Create (ERRC) Grid is the matrix that help execute blue ocean strategy with the four action framework: eliminating, reducing, aising and creating. ERRC Grid help company to remain on their competitive factors. Eliminating and reduce the factor that the transitional industry take it for granted can help the new strategy to remain unique from the transitional market. Nevertheless, raising and creating some unique competitive factor the transitional market never or seldom offered that is above the industry standard. With all these “Four Actions Framework” the company can escape the transitional red ocean market by activate a new blue ocean market and create a new value curve. (Kim & Mauborgne, 2005)