Strategy And Execution Of The Blue Ocean

1827 Words8 Pages
To shift from Red Ocean to blue ocean, emphasis must be made to the six principles/steps that leads to the formulation and execution of the blue ocean strategy. Chan and Maubourgne identified that the first step to create the blue ocean strategy is to reestablish the market limit to breach competition so that the blue ocean becomes apparent using the six-path framework. The challenge a company faces in order to succeed is spotting the opportunities. The six steps are:
1. Look for possible alternatives with exceptional value to choose from rather than a mere substitute;
2. Examine the industry where the company is in to determine which factors dictates customers to move from one group to another to stand out in the strategic group the company is in;
3. Question the current market and focus on the previously neglected segment of the market, be it the purchaser, the user or the buyer;
4. Conceive complementary products and services to create a value curve;
5. Shift buyer’s appeal from emotional to functional or functional to emotional; and
6. Identify decisive, irreversible trends that have clear trajectory and implement change to unlock new opportunities.
The second step to creating the blue ocean is strategizing, by focusing on the big picture - the performance of the organization, instead of getting caught up in the operational detail. This is what differentiates those in the Red Ocean from those in the blue ocean. According to the authors, the four steps to visualize
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