article “Blue Ocean Strategy” and Blue Ocean Strategy: From Theory to Practice challenges firms to distance themselves from the fierce competition in the marketplace by utilizing Blue Ocean Strategy versus the dominantly used Red Ocean Strategy. Both Blue and Red Oceans are distinctly different strategies, both logics are important to understand, and they both coexist. By understanding by the underlying logic of both strategies companies will be able to make decisions on what strategy they will
The impact of Blue Ocean Strategy In the earlier work (See Blue Ocean Strategy: how to create uncontested market , 2005) it has been argued two types of strategies: blue ocean strategy and red ocean strategy. Red ocean strategists compete to win market share in traditional mature markets and pursue either a differentiation or cost leader strategy. On the other hand, Blue ocean strategists, create new environments, redefine products or services or the nature of competition, make competition irrelevant
Team : Hetong Xu; Jin Liu; Jieqi Jin. Blue Ocean Strategy 1. What is a blue ocean strategy? What is a red ocean strategy? Explain these from the perspective of company, competition, costs, and markets. 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
Mauborgne whom are professors of strategic management they develop a blue ocean strategy as a new way of thinking to make this competition irrelevant and creating new market space. It is also demonstrates how the companies traditionally work in red ocean conditions where companies are fighting fiercely against each others to gain a share of the market. So what is Blue Ocean? W.Chan Kim and Renee Mauborgne (2004) state that Blue Ocean is the market that does not exist today on other word new and unknown
Summary The Blue Ocean Strategy by W. Chan Kim and Renee Mauborgne is based on the premise of "how to create uncontested market space and make the competition irrelevant." A blue ocean strategy is in contrast to a red ocean strategy. A red ocean represents the known market space which includes all industries in existence today. The rules of business here are well defined and companies within the red ocean play within accepted industry boundaries. The key to performing well in red oceans is to outperform
BLUE OCEAN STRATEGY Blue Ocean Strategy Introduction Blue ocean strategy is a marketing book by W. Chan Kim and Renee Mauborgne in the year 2005. The book mostly borrows from a range of over 140 strategic marketing moves within a period of over a century. The book succeeds in showing how businesses, can outdo their competitors. Not because of battling them, rather, because of what the authors refer to as blue oceans, which consists of uncontested market space. Body The book gives a detailed
world is composed of two types of spaces, these are called red oceans and blue oceans. Red oceans are the representation of all industries that have already been established and are in existence to this day, such as the automobile industry. Within the red ocean space boundaries have been set up and established throughout the industry, companies accept them and understand the competitive nature and rules. Companies within the red ocean industries, try to compete for the existing demand from the consumers
STRATEGIC MANAGEMENT ASSIGNMENT # 5 BLUE OCEAN STRATEGY October 24, 2014 Case Study Question 1 Critically analyze the case. Solution 1 In this case study, the author has discussed different methods and strategies which global firms are adapting to achieve success and to grow exponentially in their relevant industries. This article has focused on two strategies, Red Ocean and Blue Ocean particularly. These strategies are used to define the environment a firm is operating in and to
opportunity is to create blue oceans of uncontested market space. Blue Ocean Strategy by W. Chan Kim and Renée Mauborgne Included with this full-text Harvard Business Review article: 70 Article Summary The Idea in Brief—the core idea The Idea in Practice—putting the idea to work 71 Blue Ocean Strategy 80 Further Reading A list of related materials, with annotations to guide further exploration of the article’s ideas and applications Reprint R0410D Blue Ocean Strategy The Idea in Brief
WHAT IS THE BLUE OCEAN STRATEGY The term blue ocean was coined by two professors W.Chan Kim and Renee Mauborgne in their book titled “Blue Ocean Strategy: How to Create Uncontested Market Space and the Make Competition Irrelevant” (2005). The authors present the idea of a business being able to operate in a league of its own, without intense competition. The company is able to set its own pace to create, sell and profit from unique products and services in high potential new markets. The blue ocean