Blue Ocean Strategy Theory and Criticism

For example In 2004 Branson was set to enter the music industry once again by diversifying into the online music industry through an online music store service just like Apple. He also released his own mp3 called the ‘Pulse’ that was to rival Apple’s Ipod. Unfortunately he closed both products later that year due to the fact that Apple kept releasing new products that made the ‘Pulse’ outdated with Apple’s high brand awareness, Virgin found it difficult to rival a large market leader therefore caused them to retrench and withdraw their product. This shows that although diversifications seem the best strategy for profitable growth, it does pose many risks especially when entering new unfamiliar markets.

HCAD 790: Practitioner Application 2 Jennifer Chaix J16006447 September 12, 2017 Turning Today’s Bloody Healthcare Market Blue When discussing healthcare, “blue” and “red” are adjectives typically associated with the color of a patient’s veins and blood. However, from the executive’s point of view, these two adjectives mean something completely different. In the healthcare field, there are two market strategies: red ocean strategy and blue ocean strategy. “Red Oceans” represent the pre-identified market place which is comprised of all the types of businesses which are actively participating in the industry day.

95% of the ocean has not been explored. With all the species and environments within the ocean that we have discovered, it is mind blowing to think that we have only seen 5% of what the ocean has to offer. The World is Blue: How Our Fate and the Ocean’s are One explores our long standing relationship with the ocean. This book is penned by oceanographer, explorer, and lecturer, Sylvia Earle. She earned her B.S degree from Florida State University, M.S and PhD from Duke University, and has accumulated 22 honorary degrees. She has worked as a director for multiple corporate and nonprofit organizations and as chief scientist for the National Oceanic and Atmospheric Administration [1]. Earle’s research concerns marine ecosystems with an emphasis on conservation, which is the focal point of her novel. It is woven with stories compiled from decades of work and exploration, and with facts and arguments concerning our changing ocean. Sylvia’s novel is about the relationship between humans and the ocean, whether it be through the extinction of species, climate change, or even exploration and aquaculture, we ultimately affect the ocean and it affects us.

Alfred T. Mahan and the influence of sea power on U.S. expansion in the Pacific

An article called “, Knowing When To Reinvent,” was composed by three company leaders, one being a CEO, to inform other company leaders about potential fault lines that have caused many companies to have downfalls. However, to prevent economic downfalls, the authors compiled a list of the downfalls and how to avoid them. Many companies have taken what seemed to be drastic measures to be successful in a changing marketplace. The thesis outlines the five fault lines within the article which are: customer needs, performance metrics, industry position, business model, and talent and capabilities (Bertolini et al., 2015).

Blue oceans, in contrast, denote all the industries not in existence today—the unknown market space, untainted by competition. In blue oceans, demand is created rather than fought over. There is ample opportunity for growth that is both profitable and rapid. In blue oceans, competition is irrelevant because the rules of the game are waiting to be set. Blue ocean is an analogy to describe the wider, deeper potential of market space that is not yet explored.The corner-stone of Blue Ocean Strategy is 'Value Innovation'. A blue ocean is created when a company achieves value innovation that creates value simultaneously for both the buyer and the company. The innovation (in product, service, or delivery)

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

In this essay I will describe and explain the causes and consequences of disruptive innovation. Firstly I will write about what dualism is, why it is important and how to achieve it. I will continue with describing difficulties, which may occur on a company’s path towards it, namely overshooting and inability to recognize the start of a new industry cycle. Further on, I will go deeper in the reasons, why incumbents fail to recognize the new entrants on the market, specifically “attack from below” and other discontinuous patterns of change. In the end I will describe some of the responses taken by established companies to disruptive technologies.

The sun glares at me, burning me even more as I look out onto the ocean. The water looks like a blanket of diamonds, making me grin easily. Thinking of the treasure out there, my toes curl into the sand, feeling the rough texture prod me even more. My tanned, muscled arm wraps around the smooth surface of my white surfboard, giving me a rush of adrenaline for what is to come.

Kim, W. Chan, and Renée Mauborgne. "Blue Ocean Strategy." Davidhenard.com. Harvard Business Review. Web. 22 Oct 2013. .

The authors of the book 'Blue Ocean Strategy' are two friends who dedicated the book to their friendship, loyalty and belief in one another. They are: W. Chan Kim and Renée Mauborgne. They met twenty years before publishing the book, in a classroom – one as a professor, the other as a student. And since that time they have been working together seeing themselves like two wet rats in a drain.

Tidd and Bessant (2009) argued that “Unless an organization is able to move into further innovation, it risks being left behind as others take the lead in changing their offerings, their operational processes or the underlying models that drive their business”.

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.

The case study of “Disruptive Innovation” is a studying that concentrated and described an innovation as the affordable price products for people in the entire world to use. This research indicated about certain disruptive innovations such as the laptops, the routers, smartphones or desktop photocopier that are the substitutions for other companies’ commodities. Furthermore, Porter five forces strategy is a structure to examine the level of competition in today’s market and to make an improvement for the business strategy. Likewise, these forces are including: the threat of new entrants, when suppliers have power, when customers have power, the threats of substitutes and intensity of competitive rivalry. Therefore, this report was assigned to analyze Porter’s five forces strategy for applying toward the case of disruptive innovations and demonstrating on how it affects or relates to most of the companies worldwide.

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)