The On The Blue Ocean Strategy Essay

1969 Words8 Pages
Kim and Mauborgne espouses that the key to beat the competition is to stop beating the competition, but rather to follow the logic of value innovation. Those who want to create a blue ocean strategy for their company must focus on value innovation that makes the competition irrelevant by the simultaneous pursuit of differentiation and low cost, thus creating a leap in value for the customers and an uncontested market space for the company. According to Chan there are three analytical tools that may be used into the formulation and execution of the blue ocean strategy, tools that must possess the following characteristics and pass it. It must have a target or focus, which is the value curve of the company, must be diverse or unique compared to the industry’s average profile, and finally, it must have a well-defined and interest-evoking tagline that delivers and communicates candidly a very clear message. The first analytical tool is Strategy Canvas, an analytical framework in a graphical form, that is intended to capture the current state of the market to better understand the competitors’ current investments, factors that the industry is currently competing on, as well as the benefits derived by the customers from the existing market offering. This gives insight on how to reevaluate the problem of the industry. The Four Action Framework, another analytical tool that creates new value curve, defines the factors that should be: 1) eliminated either because the industry

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