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d여기에서 The Explainer: Blue Ocean Strategy – blue ocean strategy 주제에 대한 세부정보를 참조하세요
When you break the bounds of existing industries, competition becomes irrelevant.
The business universe consists of two distinct kinds of space, which we think of as red and blue oceans. Red oceans represent all the industries in existence today—the known market space. In red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are well understood. Here, companies try to outperform their rivals in order to grab a greater share of existing demand. As the space gets more and more crowded, prospects for profits and growth are reduced. Products turn into commodities, and increasing competition turns the water bloody.
Blue oceans 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. There are two ways to create blue oceans. In a few cases, companies can give rise to completely new industries, as eBay did with the online auction industry. But in most cases, a blue ocean is created from within a red ocean when a company alters the boundaries of an existing industry. This is what Cirque du Soleil did. In breaking through the boundary traditionally separating circus and theater, it made a new and profitable blue ocean from within the red ocean of the circus industry.
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blue ocean strategy 주제에 대한 자세한 내용은 여기를 참조하세요.
What is Blue Ocean Strategy
BLUE OCEAN STRATEGY is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. It is about creating …
Source: www.blueoceanstrategy.com
Date Published: 1/25/2022
View: 9679
Blue Ocean Strategy & Shift: Create New Market Space and …
Blue Ocean Strategy & Blue Ocean Shift is about creating new market space and making the competition irrelevant. It is a roadmap to move you, your team, …
Source: www.blueoceanstrategy.com
Date Published: 9/2/2021
View: 1311
Blue Ocean Strategy – Wikipedia
The book presents analytical frameworks and tools to foster an organization’s ability to systematically create and capture “blue oceans”—unexplored new market …
Source: en.wikipedia.org
Date Published: 2/9/2022
View: 4306
Chiến lược đại dương xanh (Blue Ocean Strategy) là gì …
Chiến lược đại dương xanh (tiếng Anh: Blue Ocean Strategy) là chiến lược phát triển và mở rộng thị trường trong đó không có cạnh tranh hoặc …
Source: vietnambiz.vn
Date Published: 9/24/2021
View: 1263
What Is Blue Ocean Strategy? – businessnewsdaily.com
The blue ocean strategy is about helping your company gain uncontested market space separate from other, similar businesses. These new spaces are described as “ …
Source: www.businessnewsdaily.com
Date Published: 5/25/2021
View: 3821
Blue Ocean Strategy: How to Create Uncontested Market …
A “Blue Ocean Strategy” sees market boundaries and industry structures as flexible. This book was written to help people find new markets, analyze if the new …
Source: www.amazon.com
Date Published: 10/4/2021
View: 9524
Blue Ocean Strategy, Expanded Edition: How to Create …
A “Blue Ocean Strategy” sees market boundaries and industry structures as flexible. This book was written to help people find new markets, analyze if the new …
Source: www.amazon.com
Date Published: 12/4/2022
View: 6084
The Blue Ocean Strategy Summary (With 4 Examples)
The Blue Ocean Strategy argues that consumers don’t have to choose between value and affordability. If a company can entify what consumers currently value and …
Source: www.clearpointstrategy.com
Date Published: 10/13/2022
View: 1070
Blue Ocean Strategy – Harvard Business Review
Blue Ocean Strategy · It’s not about technology innovation. Blue oceans seldom result from technological innovation. · You don’t have to venture into distant …
Source: hbr.org
Date Published: 12/27/2021
View: 5236
Blue Ocean Strategy – Definition – The Economic Times
Definition: ‘Blue Ocean Strategy is referred to a market for a product where there is no competition or very less competition. This strategy revolves around …
Source: economictimes.indiatimes.com
Date Published: 12/1/2022
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주제와 관련된 이미지 blue ocean strategy
주제와 관련된 더 많은 사진을 참조하십시오 The Explainer: Blue Ocean Strategy. 댓글에서 더 많은 관련 이미지를 보거나 필요한 경우 더 많은 관련 기사를 볼 수 있습니다.
주제에 대한 기사 평가 blue ocean strategy
- Author: Harvard Business Review
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- Date Published: 2019. 7. 16.
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WHAT IS BLUE OCEAN STRATEGY?
RED OCEANS are all the industries in existence today – the known market space. In red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known.
Here, companies try to outperform their rivals to grab a greater share of existing demand. As the market space gets crowded, profits and growth are reduced. Products become commodities, leading to cutthroat or ‘bloody’ competition. Hence the term red oceans.
What Is Blue Ocean Strategy?
The blue ocean strategy encourages tweaking your products to push them into their own market with low prices and no competition.
Many household-name businesses have reached their current stature through blue ocean strategies, but the approach can be risky.
To implement a blue ocean strategy, grow your current team and identify pain points that only your business addresses.
This article is for business owners interested in creating their own market rather than competing.
Let’s say the products and services you offer aren’t enabling you to meet your revenue goals. What if you could figure out how to tweak your products and services to make them an industry of their own?
This is precisely what the blue ocean strategy suggests, though household-name brands used this approach long before a 2004 book gave it a name. We’ll explore how creating your own market has helped many businesses grow and share how your business can also benefit.
What is the blue ocean strategy?
The blue ocean strategy is about helping your company gain uncontested market space separate from other, similar businesses. These new spaces are described as “blue oceans” – a term meant to contrast with the struggle for survival in bloody “red oceans” swarming with vicious competition.
The blue ocean strategy represents the simultaneous pursuit of high product differentiation and low cost, making the competition irrelevant.
The name “blue ocean strategy” comes from the book Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant. Professor W. Chan Kim, who co-authored the book with Renee Mauborgne, explained the concept in a Forbes article: “Our study shows that blue ocean strategy is particularly needed when supply exceeds demand in a market. This situation is applying to more and more industries today and will be even more prevalent in the future.”
Key takeaway: The blue ocean strategy encourages you to innovate and develop new, affordable products that make competition irrelevant.
Pros and cons of the blue ocean strategy
The blue ocean strategy might be a boon for your business, or it might unintentionally hamper your operations. Look over the blue ocean pros and cons to decide if the strategy is right for you.
Pros of the blue ocean strategy
These are some of the benefits of the blue ocean strategy:
You avoid saturated markets. Your small business must compete with mega-corporations and other major players in your field. But if you adopt the blue ocean strategy, your product won’t be quite like anything else while still addressing customer needs at affordable prices. You’ll end up with no competition from the powerful big names in your field.
Your small business must compete with mega-corporations and other major players in your field. But if you adopt the blue ocean strategy, your product won’t be quite like anything else while still addressing customer needs at affordable prices. You’ll end up with no competition from the powerful big names in your field. It introduces growth potential. Going the blue ocean route means balancing product or service innovation with cost and utility, creating new value for your customers. As more customers buy what you sell, word-of-mouth advertising can increase demand.
Going the blue ocean route means balancing product or service innovation with cost and utility, creating new value for your customers. As more customers buy what you sell, word-of-mouth advertising can increase demand. You’ll meet customers on their level. Value and affordability are equally important in blue ocean thinking. You’ll always introduce your innovations at price points your target customer can accommodate. This approach lowers your audience’s barriers to buying what you sell.
Cons of the blue ocean strategy
These are some downsides of the blue ocean strategy:
It may be too ambitious. The logic behind the blue ocean strategy implies that any business can come up with an affordable, competition-free product or service. In reality, it’s not always easy to be this innovative. Even if you do have a great idea, real-world constraints could get in the way of making it a reality.
The logic behind the blue ocean strategy implies that any business can come up with an affordable, competition-free product or service. In reality, it’s not always easy to be this innovative. Even if you do have a great idea, real-world constraints could get in the way of making it a reality. It may be too risky. Perhaps you have found a way to make a completely unique product without setting an absurd price. Maybe you’ve come to this crossroads because people in your small business niche would buy from your business. But what if these people are the only ones interested in your offerings? If that’s the case, the blue ocean approach could needlessly constrain you.
Perhaps you have found a way to make a completely unique product without setting an absurd price. Maybe you’ve come to this crossroads because people in your small business niche would buy from your business. But what if these people are the only ones interested in your offerings? If that’s the case, the blue ocean approach could needlessly constrain you. It may be impermanent. Innovations yield imitators, which means a blue ocean could easily become a red ocean with time. Even if a blue ocean strategy feels ideal for your business right now, it could cease to be possible in the long term.
How to implement a blue ocean strategy
Kim and Mauborgne’s book suggests taking the following steps to implement a blue ocean strategy:
Figure out a starting point for introducing your new offerings, and hire employees who will help you build the strongest team and brand identity. Assess your current team’s strengths and weaknesses, and determine how to improve them. Identify pain points that your current and new customers might have. Develop products and services that address these pain points in ways unlike any other business. Write a formal plan for your shift and test your new products and services (and the processes you’ll take to get there).
Tip: Conduct a SWOT analysis to help your team members grow their strengths and boost their personal development, becoming the best versions of themselves.
Examples of blue ocean strategy
The blue ocean strategy might sound new, but businesses have been successfully using it for quite some time – even before Kim and Mauborgne named the approach. Here are three examples.
Ford
When household-name automotive company Ford launched its now-legendary Model T series, most manufacturers were customizing cars to each buyer’s needs. This approach led to high prices and inconsistent quality.
By contrast, the Model T came in just one color and model for every customer. The lack of customization led to lower prices and more consistent quality. Ford’s approach became the basis of the modern auto industry.
Nintendo
When Nintendo introduced the Wii in 2006, the company avoided competing with the Xbox and Playstation on graphics. Instead, Nintendo prioritized wireless motion-control gameplay that was unavailable on other systems. That’s how Nintendo was able to introduce more interactive, physical games like the Wii Sports series. The games’ popularity – as well as that of the console – grew rapidly.
Netflix
Netflix has successfully employed the blue ocean model twice. Reed Hastings and Marc Randolph founded the company as the first-ever mail-order DVD rental business in 1997. Of course, Netflix eventually introduced the streaming TV model that permeates virtually every aspect of modern life. In both cases, the strategy paid off and made Netflix a household name on the level of Walmart or Amazon.
Did you know? Other companies that have used blue ocean strategies include Apple, Yellow Tail, Amazon and Home Depot.
Finding blue oceans
While they avoided mentioning Harvard Business School’s Michael E. Porter by name, Kim and Mauborgne attacked his famous five forces market analysis head-on. Porter’s model looks at specific factors that help determine whether a business can be profitable based on other businesses in the industry.
Advocates of Kim and Mauborgne’s strategy would say this tactic promotes merciless competition, remaining in the red ocean.
The key to exceptional business success, Kim and Mauborgne say, is to redefine the terms of competition and move into the blue ocean, where you have the water to yourself. The goal of these strategies is not to beat the competition, but to make the competition irrelevant.
To discover an elusive blue ocean, Kim and Mauborgne recommend considering what they call the “four actions framework” to reconstruct buyer value elements in crafting a new value curve. The framework poses four key questions.
Raise: What factors should be raised well above the industry’s standard? Reduce: What factors resulted from competing against other industries and can be reduced? Eliminate: Which factors that the industry has long competed on should be eliminated? Create: Which factors should be created that the industry has never offered?
This exercise forces companies to examine every factor of competition, guiding leaders to discover the assumptions they unconsciously make while competing. They can then search for blue oceans within their industries and make the shift.
Tip: When conducting a competitive analysis to improve your business and better serve your customers, be honest about your competitors’ strengths and success.
Blue ocean strategy in practice
Kim pointed out how Amazon has shifted from an online retailer to a digital platform that sells practically anything.
“Just think of its initial blue ocean shift in book retailing that separated it from the pack with its offering of the largest selection of books in the world, good prices, automatic confirmation of buyers’ orders, its useful selection on ‘people who bought this book also bought,’ and firsthand reviews on what readers found useful or not in a book,” he said.
Amazon isn’t always successful in creating blue oceans, however. According to Mauborgne, it failed in a few instances – against Zappos, eBay and Apple.
“In each of these cases, the companies Amazon went up against had all created blue oceans of their own, and whenever Amazon tried to imitate them, they failed,” Mauborgne said. “The lesson here is that the best defense is offense, and the best offense … is to make a blue ocean shift and create your own blue ocean. Imitation is not the path to success, especially in the overcrowded industries most companies today confront.”
Another company that created a blue ocean shift is Home Depot, which made an original value-cost frontier that led to the multibillion-dollar DIY market, according to Kim.
“When they saw Amazon encroaching upon their space, instead of competing head-on … they doubled down on offering what Amazon could not – knowledge and advice to complete complex do-it-yourself projects such as renovating your bathroom on your own,” he said.
Making the shift to a blue ocean strategy
When there is limited room to grow, businesses should try to look for verticals to find new sectors where they can enjoy uncontested market share. The aim is to capture new demand with a superior product that makes competition irrelevant. Unfortunately, this isn’t always successful.
As stores continue to expand and American shopping habits change, retailers are struggling financially. Stores such as Nine West, Claire’s and the Bon-Ton stores are a few among the multitude of companies that have filed for bankruptcy in the last several years.
For struggling businesses, Mauborgne recommended the strategy canvas, which is featured in her newer book with Kim, Blue Ocean Shift: Beyond Competing. A strategy canvas is a one-page analytic that helps businesses focus on an industry and its key competing factors.
“It drives you to take a hard look at yourself as the market sees you,” Mauborgne said. “If retailers applied it, they’d quickly discover that they all compete in the same space they have for 30 years, and all are near mirror images of one another. That creates a real wake-up call, gets everyone aligned, and creates a strong impetus for change.”
Her ultimate advice for businesses is to stop competing and start creating.
Carlyann Edwards and Kayla Harrison contributed to the writing and reporting in this article. Source interviews were conducted for a previous version of this article.
3 examples of blue ocean strategy
We’ve explored the fundamentals of blue ocean strategy before. Now, to bring it to life, we’re looking at 3 examples of companies that have used the blue ocean strategy framework to drive growth and innovation including the Nintendo Wii, Yellow Tail and Cirque de Soleil.
Nintendo Wii
The first example of blue ocean strategy comes from computer games giant, Nintendo, in the form of the Nintendo Wii.
The Nintendo Wii launched in 2006 and at its heart is the concept of value innovation. This is a key principle of blue ocean strategy which sees low cost and differentiation being pursued simultaneously.
To reduce costs, Nintendo did away with the hard disk and DVD functionality found in most game consoles and reduced the processing quality and graphics. At the same time, Nintendo introduced a wireless motion control stick to differentiate itself against the market offering. This allowed the company to offer a range of new features and benefits that hadn’t been seen in the world of gaming previously such as the ability to use a games console to get fit or to play in a larger social group.
By pursuing value innovation, Nintendo could go beyond competing against the likes of PlayStation and X-Box in a crowded and fiercely competitive red ocean. Instead, it was able to open up a new market entirely. The Nintendo Wii, with its innovative, new features and affordable price point, appealed to an entirely new and expansive market – a blue ocean – spanning non-gamers, the elderly and parents with young children.
Yellow Tail
The development of Yellow Tail, a new wine brand from Casella Wines, is another great example of blue ocean strategy in action. And it’s a case study which clearly demonstrates the rewards blue ocean strategy can bring: within three years of entering the market, Yellow Tail had become the fastest growing wine brand in US history.
How did the brand achieve this level of success so rapidly? Yellow Tail recognised that most wine brands operate in a red ocean where competition for market share is fierce. They realised that by reducing or eliminating the elements that the industry competed on and differentiating themselves, they could create a blue ocean and tap into a new set of customers.
Yellow Tail abandoned the traditional focus on prestigious vineyards and aging. And they ditched the complex terminology normally found on wine bottles which can be prove intimidating for potential customers. Instead Yellow Tail created a drink which was sweet enough to appeal to the masses and therefore capture demand from beer and spirit drinkers rather than just wine buffs. And they made it easy to buy by only introducing two varieties: one red and one white. The rest, as they say, is history.
Cirque de Soleil
This list would not be complete without mentioning Cirque de Soleil, arguably one of the most famous examples of blue ocean strategy in action. Formed in Canada in the early 1980s, the company has since gone on to entertain 155 million people in over 300 cities. How? Cirque du Soleil reinvented the circus industry by pursuing both low cost and differentiation.
Doing away with live animal acts enabled the company to reduce its cost base, whilst the introduction of live music and a storyline, inspired by the world of theatre, and an emphasis on human physical skill helped Cirque du Soleil to create new elements that had never before been seen in the world of the circus.
The result? Cirque du Soleil created a new market space. Their new audience of adults and corporate clients (rather than the traditional audience of families) is also willing to pay higher prices to watch this extraordinary spectacle.
The Six Paths Framework in Formulating Blue Ocean Strategy
The Six Paths Framework in Formulating Blue Ocean Strategy
To break from competition, a organization has to reconstruct the market boundary which is the first and foremost principle in creating blue ocean strategy. There are six basic approaches to reconstruct market boundaries, also known as Six Paths Framework. These paths challenge the conventional approach of the organization in strategy formulation to work within its boundaries, but instead break out of the known boundaries. This helps them to move out of red oceans and create blue oceans.
The six paths framework in formulating blue ocean strategy are (1) Look across alternative industries, (2) Look across strategic groups within industry, (3)Look across buyer groups, (4) Look across complementary product and service offerings, (5)Look across the functional-emotional orientation of an industry and (5)Look across time to shape trends.
6 paths framework blue ocean strategy 6 paths framework blue ocean strategy
Following are the six paths framework involved in formulating the blue ocean strategy.
Path 1: Look across alternative industries
Organizations compete not only within the industries but also with organizations in other industries which produce alternative product and services to their industry.
One of the biggest limitations we put on our organization is to assume that our products/services compete in a defined and unchanging industry with a very narrow view of the environment.
The first path in formulating the blue ocean strategy is to find the alternative industries to your industry’
In order to understand this path let us first understand difference between substitute and alternative:
Substitutes are products or services that have different forms but offer the same functionality or core utility.
are products or services that have different forms but offer the same functionality or core utility. Alternatives are products or services that have different functions and forms but the same purpose.
Let us consider an example from entertainment industry. The function of this industry is to provide entertainment and the purpose of this industry is relax, rewind, de-stress, experience and fun. The substitutes to this industry are CDs, TV, stage shows, etc. But the alternatives to this industry include visiting a mall, library, hobby centre, etc., all of which serves the same purpose.
Thus by focusing on the key factors that lead buyers to trade across alternative industries and by eliminating or reducing everything else, you can create a blue ocean of new market space.
Let us take the case of pro-biotic drink Yakult. It competes with health drinks, juice brands, at the same time it competes with pharma industry. However, both health drinks producers & pharma brands don’t consider Yakult as their competition. Thus Yakult has created a blue ocean for itself across industries.
Path 2: Look across strategic groups
Strategic groups within Industries are group of organizations within an industry that pursue a similar strategy. Strategic groups include a hierarchical order built on two dimensions, price and performance. Thus by looking across strategic groups, an organization has to find why do buyers trade up for the higher group, and why do they trade down for the lower one?
TATA chose not to compete with entry level strategic group of cars in India such as Maruti Omni, Maruti 800, Alto & Hyundai Santro. Instead it questioned the un-questioned notion that cars can’t be less than a lakh of Indian Rupees. It looked for factors which, Maruti 800 buyers would trade down or 2 wheeler buyers would trade up!
Path 3: Look across Buyer Groups
In most industries, competitors converge around a common definition of target buyer. However there are chain of buyers who are directly or indirectly involved in buying decisions, such as:
Purchasers who pay for the product or service
Actual users who use the products
Influencers who have a role to play in decisions
Intermediate buyers who are traders
Regulators who influence the buying decisions
Thus blue ocean strategy is formulated by finding out who are the chain of buyers in your industry and which buyer group does your industry typically focus on? And if you shift the focus from one buyer group to another, how can you unlock new value?
Novodisk, a leading producer of insulin created blue ocean by focusing on diabetes patients instead of doctors & nurses who are traditionally targeted. Thus they created travel friendly, easy to use, hassle free, easy to set, fancy looking, pen like shots instead of syringes and insulin bottles.
Path 4: Look across complementary product and service offerings
An organization has to think about what happens before, during, and after your product/service is used by the consumers. In most industries, competitors converge within the boundary of their industry’s product and service offerings. By understanding the context in which your product or service is used and what happens before, during, and after, you can identify pain points (constraints) of the consumers, eliminate these pain points through a complementary product or service offering.
Philips saw that the biggest issue in brewing tea was not in the kettle itself but in the complementary product of water, which had to be boiled in the kettle. The issue was the lime scale found in tap water. Philips saw this as an opportunity and solved the major pain point of customer that related to water rather than their kettle by adding a mouth filter in the kettle that effectively captured the lime scale as the water was poured.
Path 5: Look across the functional-emotional orientation of an industry
Emotional Appeal to buyers refers to the emotional utility a buyer receives in the consumption or use of a product or service. Competition tends to converge on one of two possible basis of appeal. ‘What are the extras we offer that add to the cost of our product without enhancing functionality? By eliminating or reducing these factors, can we create a simpler, functional, lower-priced, lower-cost offering that would dramatically raise buyers’ value’. These are to be questioned in blue ocean strategic formulation.
Functional Appeal to buyers refers to the functional utility buyers receive from a business or product/service based on basic calculations of utility and price. Competition in an industry tends to converge on one of two possible basis of appeal. What emotional elements can we raise or create to infuse our commodity products with new life by adding a dose of emotion?
By understanding your industry focus on functionality or emotional appeal, you can either compete on emotional appeal by stripping functional elements or compete on functionality by adding emotional elements.
Fast Food producer, Subway uses emotional appeal to trade up its range of products which usually have more functional appeal rather than emotional. Fast food industry is driven by price and waiting time which are functional. This industry rarely competes on emotional appeal.
Path 6: Look across time
Many of us respond to trends in our industry at the point they are making an impact. In other words we create reactive strategies, which allow us to adapt to a changing environment. All industries are subject to external trends that affect their business over time. Instead of adapting incrementally and somewhat passively, one can gain insights into how the trend(s) will change value to customers and impact their organization’s business model.
To assess trends across time, three criteria are critical: the trend must be decisive to the business, irreversible and have a clear trajectory. By knowing what trends have a high probability of impacting your industry, are irreversible, and evolving in a clear trajectory, you can open up unprecedented customer utility.
When we look across these six paths at the commencement of our strategy formulation we find that this process helps us create new perspectives. Our thinking becomes more creative.
It seems simple, because it is. However, it’s when we actually start the process of looking across these six paths we find our assumptions start to break down and simultaneously we awaken to new perspectives about our organization and its industry. And it’s from this place that innovations and new opportunities are created.
Blue Ocean Leadership Tools and Frameworks
Step 1: See your leadership reality
Step 2: Develop alternative Leadership Profiles
Step 3: Select to-be Leadership Profiles
Step 4: Institutionalize new leadership practices
Blue ocean leadership uses analytic tools like the Leadership Canvas and the Blue Ocean Leadership Grid to make this happen. These highly visual tools allow leaders and organizations to see, measure and track leadership changes in a real way which is much more practical and easier than trying to track changes in a leader’s values and behavioral traits.
Blue Ocean Strategy & Shift: Create New Market Space and Make the Competition Irrelevant
BLUE OCEAN STUDENT ENTREPRENEUR COMPETITION
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The 2022-2023 Blue Ocean Competition is open for registration!
Blue Ocean Strategy
Marketing theory book
Blue Ocean Strategy is a book published in 2004 written by W. Chan Kim and Renée Mauborgne, professors at INSEAD,[1] and the name of the marketing theory detailed on the book.
They assert that these strategic moves create a leap in value for the company, its buyers, and its employees while unlocking new demand and making the competition irrelevant. The book presents analytical frameworks and tools to foster an organization’s ability to systematically create and capture “blue oceans”—unexplored new market areas.[2] An expanded edition of the book was published in 2015, while a sequel entitled Blue Ocean Shift was published in 2017.
Book layout and concepts [ edit ]
The book is divided into three parts:[3]
1. The first part presents key concepts of blue ocean strategy, including Value Innovation – the simultaneous pursuit of differentiation and low cost – and key analytical tools and frameworks such as the strategy canvas and the four actions framework. The four actions framework aids in eliminating the trade-off between differentiation and low cost within a company. The four actions framework consists of the following:
Raise: This questions which factors must be raised within an industry in terms of product, pricing or service standards.
Eliminate: This questions which areas of a company or industry could be completely eliminated to reduce costs and to create an entirely new market.
Reduce: This questions which areas of a company’s product or service are not entirely necessary but play a significant role in your industry, for example, the cost of manufacturing a certain material for a product could be reduced. Therefore, it can be reduced without completely eliminating it.
Create: This prompts companies to be innovative with their products. By creating an entirely new product or service, a company can create their own market through differentiation from the competition.[4]
2. The second part describes the four principles of blue ocean strategy formulation. These four formulation principles address how an organization can create blue oceans by looking across the six conventional boundaries of competition (Six Paths Framework), reduce their planning risk by following the four steps of visualizing strategy, create new demand by unlocking the three tiers of noncustomers and launch a commercially viable blue ocean idea by aligning unprecedented utility of an offering with strategic pricing and target costing and by overcoming adoption hurdles. The book uses many examples across industries to demonstrate how to break out of traditional competitive (structuralist) strategic thinking and to grow demand and profits for the company and the industry by using blue ocean (reconstructionist) strategic thinking. The four principles are:
how to create uncontested market space by reconstructing market boundaries, focusing on the big picture, reaching beyond existing demand and supply in new market spaces getting the strategic sequence right.
3. The third and final part describes the two key implementation principles of blue ocean strategy including tipping point leadership and fair process. These implementation principles are essential for leaders to overcome the four key organizational hurdles that can prevent even the best strategies from being executed. The four key hurdles comprise the cognitive, resource, motivational and political hurdles that prevent people involved in strategy execution from understanding the need to break from status quo, finding the resources to implement the new strategic shift, keeping your people committed to implementing the new strategy, and from overcoming the powerful vested interests that may block the change.[5][6]
Proposition [ edit ]
In the book the authors draw the attention of their readers towards the correlation of success stories across industries and the formulation of strategies that provide a solid base to create unconventional success – a strategy termed as “blue ocean strategy”. Unlike the “red ocean strategy”, the conventional approach to business of beating competition derived from the military organization, the “blue ocean strategy” tries to align innovation with utility, price and cost positions. The book mocks the phenomena of conventional choice between product/service differentiation and lower cost, but rather suggests that both differentiation and lower costs are achievable simultaneously.
The authors ask readers “What is the best unit of analysis of profitable growth? Company? Industry?” – a fundamental question without which any strategy for profitable growth is not worthwhile. The authors justify with original and practical ideas that neither the company nor the industry is the best unit of analysis of profitable growth; rather it is the strategic move that creates “blue ocean” and sustained high performance. The book examines the experience of companies in areas as diverse as watches, wine, cement, computers, automobiles, textiles, coffee makers, airlines, retailers, and even the circus, to answer this fundamental question and builds upon the argument about “value innovation” being the cornerstone of a blue ocean strategy. Value innovation is necessarily the alignment of innovation with utility, price and cost positions. This creates uncontested market space and makes competition irrelevant. The new chapters in the expanded edition of the book deal with the issues of how to develop and align the three strategy propositions of value, profit and people, how to sustain and renew blue ocean strategy at both the business level and the corporate level, and how to avoid red ocean traps that keep organizations anchored in existing market space even as they attempt to create new market space.[7] The following section discusses the concept behind the book in detail.
Concept [ edit ]
Cirque du Soleil – an example of creating a new market space, by blending opera and ballet with the circus format while eliminating star performers and animals.
The metaphor of red and blue oceans describes the market universe.
Red oceans represent all the industries in existence today – the known market space. In the red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known. Here companies try to outperform their rivals to grab a greater share of product or service demand. As the market space gets crowded, prospects for profits and growth are reduced. Products become commodities or niche, and cutthroat competition turns the ocean bloody; hence, the term “red oceans”.[8]
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.[8]
The cornerstone of blue ocean strategy is “value innovation”, a concept originally outlined in Kim & Mauborgne’s 1997 article “Value Innovation – The Strategic Logic of High Growth”.[9] Value innovation is the simultaneous pursuit of differentiation and low cost, creating value for both the buyer, the company, and its employees, thereby opening up new and uncontested market space. The aim of value innovation, as articulated in the article, is not to compete, but to make the competition irrelevant by changing the playing field of strategy. The strategic move must raise and create value for the market, while simultaneously reducing or eliminating features or services that are less valued by the current or future market. The Four Actions Framework is used to help create value innovation and break the value-cost trade-off. Value innovation challenges Michael Porter’s idea that successful businesses are either low-cost providers or niche-players. Instead, blue ocean strategy proposes finding value that crosses conventional market segmentation and offering value and lower cost. Educator Charles W. L. Hill proposed a similar idea in 1988 and claimed that Porter’s model was flawed because differentiation can be a means for firms to achieve low cost. He proposed that a combination of differentiation and low cost might be necessary for firms to achieve a sustainable competitive advantage.
Many others have proposed similar strategies. For example, Swedish educators Jonas Ridderstråle and Kjell Nordström in their 1999 book Funky Business follow a similar line of reasoning. For example, “competing factors” in blue ocean strategy are similar to the definition of “finite and infinite dimensions” in Funky Business. Just as blue ocean strategy claims that a red ocean strategy does not guarantee success, Funky Business explained that “Competitive Strategy is the route to nowhere”. Funky Business argues that firms need to create “sensational strategies”. Just like blue ocean strategy, a sensational strategy is about “playing a different game” according to Ridderstråle and Nordström. Ridderstråle and Nordström also claim that the aim of companies is to create temporary monopolies. Kim and Mauborgne explain that the aim of companies is to create blue oceans, that will eventually turn red. This is the same idea expressed in the form of an analogy. Ridderstråle and Nordström also claimed in 1999 that “in the slow-growth 1990s overcapacity is the norm in most businesses”. Kim and Mauborgne claim that blue ocean strategy makes sense in a world where supply exceeds demand.
Blue ocean vs. red ocean [ edit ]
Kim and Mauborgne argue that while traditional competition-based strategies (red ocean strategies) are necessary, they are not sufficient to sustain high performance. Companies need to go beyond competing. To seize new profit and growth opportunities they also need to create blue oceans. The authors argue that competition based strategies assume that an industry’s structural conditions are given and that firms are forced to compete within them, an assumption based on what academics call the structuralist view, or environmental determinism. To sustain themselves in the marketplace, practitioners of red ocean strategy focus on building advantages over the competition, usually by assessing what competitors do and striving to do it better. Here, grabbing a bigger share of the market is seen as a zero-sum game in which one company’s gain is achieved at another company’s loss. Hence, competition, the supply side of the equation, becomes the defining variable of strategy. Here, cost and value are seen as trade-offs and a firm chooses a distinctive cost or differentiation position. Because the total profit level of the industry is also determined by structural factors, firms principally seek to capture and redistribute wealth instead of creating wealth. They focus on dividing up the red ocean, where growth is increasingly limited.
Blue ocean strategy, on the other hand, is based on the view that market boundaries and industry structure are not given and can be reconstructed by the actions and beliefs of industry players. This is what the authors call the reconstructionist view. Assuming that structure and market boundaries exist only in managers’ minds, practitioners who hold this view do not let existing market structures limit their thinking. To them, extra demand is out there, largely untapped. The crux of the problem is how to create it. This, in turn, requires a shift of attention from supply to demand, from a focus on competing to a focus on value innovation – that is, the creation of innovative value to unlock new demand. This is achieved via the simultaneous pursuit of differentiation and low-cost. As market structure is changed by breaking the value/cost tradeoff, so are the rules of the game. Competition in the old game is therefore rendered irrelevant. By expanding the demand side of the economy, new wealth is created. Such a strategy therefore allows firms to largely play a non–zero-sum game, with high payoff possibilities.
History of the concept [ edit ]
The concept was initially developed in the 1990s when W. Chan Kim was taking part in a consulting project for Philips, headed by the management scholar C.K. Prahalad. Working with consultants from the Mac Group (a consulting company that was later bought by Capgemini), he developed strategy tools leading to the publication of a series of articles in the Harvard Business Review, and then in 2005 of the Blue Ocean Strategy book.[10]
Nintendo’s Wii video game console, first released in 2006, has been often considered an example of the blue ocean concept. Instead of trying to compete with the high performance and computational power of the consoles from Sony and Microsoft, Nintendo designed the Wii’s hardware to focus on innovative gameplay, incorporating the use of motion controls atypical of video games. These changes brought new gameplay ideas to the system as well as reduced the cost of the console compared to its competitors. As a result, the Wii sold more than 100 million units over its lifetime, far outselling the competitors.[11][12]
Reception [ edit ]
Since Blue Ocean Strategy was published in 2005 it has been translated into 43 languages and has sold over 3.5 million copies. The book was named a bestseller by the Wall Street Journal, BusinessWeek, and Amazon.com.[13][14][15][16] It was selected as one of the “Best Books of 2005” by Fast Company magazine, won “The Best Business Book of 2005” Prize at the Frankfurt Book Fair, and achieved bestselling book of the decade status by 800-CEO-READ (2000-2010).[17][18][19] Strategy+Business magazine selected it as #1 strategy book of 2005.[20]
In 2009, Blue Ocean Strategy was selected by the China Daily and the China Research Institute as one of the 40 most influential books in the History of the People’s Republic of China (1949-2009) along with Adam Smith’s ″The Wealth of Nations″ under the category of ″Economics and Finance.″[21][22] In 2010, Polish group ThinkTank selected Blue Ocean Strategy as one of the Top 20 books that have shaped Polish Leaders.[23] Blue Ocean Strategy won the Thinkers50 2011 Strategy Award for Best Business Book of the decade and in the same year, it was introduced to the Fast Company Leadership Hall of Fame.[24][25][26] In 2013, the book received the GoodBooks Award in the Management category by the Vietnamese Institute for Research on Education Development (IRED), was selected as one of the 15 Best Business Books of the last decade in Russia by the Kommersant.ru magazine, and selected as one of the top three best management books in Japan by the Diamond Harvard Business Review.[27][28][29]
The Wall Street Journal recommends Blue Ocean Strategy for the top manager.[30] Forbes calls it one of the ten business trends for 2013 and argues that “blue ocean strategies are more influential than ever.”[31][32] BusinessWeek says that “Blue Ocean Strategy will have you wondering why companies need so much persuasion to stay out of shark-infested waters.”[33] The Business Strategy Review said the book “challenges everything you knew about strategy”, and the Business Times called on firms to “adopt blue ocean strategy to stay ahead.”[34][35] Marketplace magazine recommends Blue Ocean Strategy as a book “you need to read.”[36] In addition, the book has received many positive reviews from various publications that include Chicago Tribune, Daily Herald, Credit Union Journal, Vancouver Sun, Association Meetings, Strategy & Leadership, and Business First, among many others.[37][38][39][40][41][42][43]
Criticisms [ edit ]
While Kim and Mauborgne propose approaches to finding uncontested market space, at the present there are few success stories of companies that have actively applied their theories. One success story that does exist is Nintendo, who applied the blue ocean strategy to the Nintendo DS, Wii, and Nintendo Switch.[44][45][46]
With just one case study, however, this hole in their data persists despite the publication of value innovation concepts dating back to 1997. Hence, a critical question is whether this book and its related ideas are descriptive rather than prescriptive.[47] The authors present many examples of successful innovations, and then explain from their Blue Ocean perspective – essentially interpreting success through their lenses.[48]
The research process followed by the authors has been criticized on several grounds.[48] Criticisms include claims that no control group was used, that there is no way to know how many companies using a blue ocean strategy failed and the theory is thus unfalsifiable, that a deductive process was not followed, and that the examples in the book were selected to “tell a winning story”.[citation needed] Meanwhile, several attempts at empirical validations and conceptual extensions of the blue ocean strategy have been published.[49][50][51]
Additionally, blue ocean strategy cannot be identified as true causation for success. The authors cite the strategies used by NYPD Commissioner Bratton as a key example of Blue Ocean applied in the public sector. They defined this success as a significant drop in crime in the City of New York after Bratton took office in 1994. Many social scientists would disagree that it was Bratton’s policies that led to crime reduction: rather, the city was simply part of a nationwide trend in decreasing crime.[citation needed]
Brand and communication are taken for granted and do not represent a key for success. Kim and Maubourgne take the marketing of a value innovation as a given, assuming the marketing success will come as a matter of course.[47]
It is argued that rather than a theory, blue ocean strategy is an extremely successful attempt to brand a set of already existing concepts and frameworks with a highly “sticky” idea.[52] The blue ocean/red ocean analogy is a powerful and memorable metaphor, which is responsible for its popularity. This metaphor can be powerful enough to stimulate people to action. The concepts behind the Blue Ocean Strategy (such as the competing factors, the consumer cycle, non-customers, etc.) are not new, however. Many of these tools are also used by Six Sigma practitioners and proposed by other management theorists.[citation needed]
Many of the book’s key concepts were previously covered in Competing For The Future by Gary Hamel and C.K. Prahalad, which was published in 1996.[53] The authors encouraged managers to stake out new marketing space, which they termed white space, in order to “create and dominate emerging opportunities”.[53][54]
See also [ edit ]
Chiến lược đại dương xanh (Blue Ocean Strategy) là gì? Nguyên tắc hình thành và thực hiện
Chiến lược đại dương xanh (tiếng Anh: Blue Ocean Strategy) là chiến lược phát triển và mở rộng thị trường trong đó không có cạnh tranh hoặc sự cạnh tranh là không cần thiết.
Hình minh họa. Nguồn: JobStreet.com
Chiến lược đại dương xanh (Blue Ocean Strategy)
Định nghĩa
Chiến lược đại dương xanh trong tiếng Anh là Blue Ocean Strategy. Chiến lược đại dương xanh là chiến lược phát triển và mở rộng thị trường trong đó không có cạnh tranh hoặc sự cạnh tranh là không cần thiết.
Các nghiên cứu định nghĩa đại dương xanh là những khoảng trống thị trường chưa được khai phá, gắn liền với lợi nhuận tiềm năng cao.
Sự hình thành và phát triển của chiến lược đại dương xanh
– “Đại dương xanh” là một thuật ngữ tiếng lóng được tạo ra vào năm 2005.
– Đại dương xanh bao gồm tất cả các ngành hiện chưa tồn tại, đó là do khoảng trống thị trường chưa được biết đến, bởi những nhu cầu mới được tạo ra và triển vọng mang lại lợi nhuận cao.
– Ý tưởng đằng sau thuật ngữ này là thách thức và mong muốn các công ty phá vỡ đại dương đỏ của cuộc cạnh tranh thương trường khốc liệt bằng cách tạo ra các khoảng trống thị trường không có cạnh tranh.
– Với quan điểm không có công ty nào thành công mãi mãi, không có ngành công nghiệp nào hoàn hảo mãi mãi, W. Chan Kim và Renee Mauborgne cho rằng các tập đoàn lớn hay bất cứ doanh nghiệp nào, trên con đường hình thành và phát triển cũng không thể tránh khỏi những thất bại.
Điều quan trọng là phải biết rút kinh nghiệm, phải hiểu rõ các điểm mạnh, điểm yếu của bản thân doanh nghiệp và biết lựa chọn các cơ hội kinh doanh phù hợp.
– Từ đó, W. Chan Kim và Renee Mauborgne đã cho ra đời cuốn sách “Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant (2005)”
Ý nghĩa
– Đại dương xanh là cơ hội lớn và công bằng đối với tất cả các doanh nghiệp. Cơ hội cho đại dương xanh có mặt ở tất cả mọi nơi, khi nào cơ hội đó được phát triển thì thị trường sẽ càng được mở rộng.
– Nhiều quan điểm cho rằng việc mở rộng và vượt ra khỏi biên giới ngành kinh doanh hiện có là hết sức rủi ro đối với doanh nghiệp, tuy nhiên cũng cần phải biết rằng ngay cả trong đại dương đỏ sẵn có thì phạm trù chiến lược vẫn luôn luôn gắn với yếu tố rủi ro.
Như vậy trong đại dương xanh hay đại dương đỏ thì vẫn luôn tồn tại yếu tố cơ hội và rủi ro.
Nguyên tắc hình thành và thực hiện chiến lược đại dương xanh
W. Chan Kim và Renee Mauborgne đã đưa ra 6 nguyên tắc cơ bản để hình thành và thực hiện thành công chiến lược đại dương xanh.
– Bốn nguyên tắc đầu tiên được dùng để xác định và hình thành chiến lược đại dương xanh bao gồm:
+ Nguyên tác xác định các hướng đi để hình thành khoảng thị trường không có cạnh tranh và giảm bớt các rủi ro trong việc tìm kiếm.
+ Nguyên tắc thiết kế qui trình hoạch định chiến lược nhằm giúp doanh nghiệp tạo ra những đột phá.
+ Nguyên tắc tối đa hóa qui mô của đại dương xanh nhằm tạo ra thị trường lớn nhất cho một nhu cầu mới.
+ Nguyên tắc xác định mô hình chiến lược cho phép doanh nghiệp xây dựng được mô hình kinh doanh vững chắc nhằm đạt được sự tăng trưởng cao và bền vững.
– Hai nguyên tắc cuối cùng giúp cho doanh nghiệp thực hiện thành công chiến lược đã xác định một cách hiệu quả:
+ Nguyên tắc giúp nhà quản lí vượt qua được những rào cản về nhận thức, động cơ, chính trị để vận động cả tập thể vượt qua những rào cản về mặt tổ chức nhằm thực hiện thành công chiến lược đại dương xanh dù bị giới hạn về thời gian và nguồn lực.
+ Xây dựng qui trình hợp lí tạo điều kiện cho việc hình thành và thực hiện chiến lược đại dương xanh.
(Tài liệu tham khảo: Giáo trình Quản trị chiến lược, NXB Đại học Kinh tế Quốc dân; Blue Ocean, Investopedia)
What Is Blue Ocean Strategy?
The blue ocean strategy encourages tweaking your products to push them into their own market with low prices and no competition.
Many household-name businesses have reached their current stature through blue ocean strategies, but the approach can be risky.
To implement a blue ocean strategy, grow your current team and identify pain points that only your business addresses.
This article is for business owners interested in creating their own market rather than competing.
Let’s say the products and services you offer aren’t enabling you to meet your revenue goals. What if you could figure out how to tweak your products and services to make them an industry of their own?
This is precisely what the blue ocean strategy suggests, though household-name brands used this approach long before a 2004 book gave it a name. We’ll explore how creating your own market has helped many businesses grow and share how your business can also benefit.
What is the blue ocean strategy?
The blue ocean strategy is about helping your company gain uncontested market space separate from other, similar businesses. These new spaces are described as “blue oceans” – a term meant to contrast with the struggle for survival in bloody “red oceans” swarming with vicious competition.
The blue ocean strategy represents the simultaneous pursuit of high product differentiation and low cost, making the competition irrelevant.
The name “blue ocean strategy” comes from the book Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant. Professor W. Chan Kim, who co-authored the book with Renee Mauborgne, explained the concept in a Forbes article: “Our study shows that blue ocean strategy is particularly needed when supply exceeds demand in a market. This situation is applying to more and more industries today and will be even more prevalent in the future.”
Key takeaway: The blue ocean strategy encourages you to innovate and develop new, affordable products that make competition irrelevant.
Pros and cons of the blue ocean strategy
The blue ocean strategy might be a boon for your business, or it might unintentionally hamper your operations. Look over the blue ocean pros and cons to decide if the strategy is right for you.
Pros of the blue ocean strategy
These are some of the benefits of the blue ocean strategy:
You avoid saturated markets. Your small business must compete with mega-corporations and other major players in your field. But if you adopt the blue ocean strategy, your product won’t be quite like anything else while still addressing customer needs at affordable prices. You’ll end up with no competition from the powerful big names in your field.
Your small business must compete with mega-corporations and other major players in your field. But if you adopt the blue ocean strategy, your product won’t be quite like anything else while still addressing customer needs at affordable prices. You’ll end up with no competition from the powerful big names in your field. It introduces growth potential. Going the blue ocean route means balancing product or service innovation with cost and utility, creating new value for your customers. As more customers buy what you sell, word-of-mouth advertising can increase demand.
Going the blue ocean route means balancing product or service innovation with cost and utility, creating new value for your customers. As more customers buy what you sell, word-of-mouth advertising can increase demand. You’ll meet customers on their level. Value and affordability are equally important in blue ocean thinking. You’ll always introduce your innovations at price points your target customer can accommodate. This approach lowers your audience’s barriers to buying what you sell.
Cons of the blue ocean strategy
These are some downsides of the blue ocean strategy:
It may be too ambitious. The logic behind the blue ocean strategy implies that any business can come up with an affordable, competition-free product or service. In reality, it’s not always easy to be this innovative. Even if you do have a great idea, real-world constraints could get in the way of making it a reality.
The logic behind the blue ocean strategy implies that any business can come up with an affordable, competition-free product or service. In reality, it’s not always easy to be this innovative. Even if you do have a great idea, real-world constraints could get in the way of making it a reality. It may be too risky. Perhaps you have found a way to make a completely unique product without setting an absurd price. Maybe you’ve come to this crossroads because people in your small business niche would buy from your business. But what if these people are the only ones interested in your offerings? If that’s the case, the blue ocean approach could needlessly constrain you.
Perhaps you have found a way to make a completely unique product without setting an absurd price. Maybe you’ve come to this crossroads because people in your small business niche would buy from your business. But what if these people are the only ones interested in your offerings? If that’s the case, the blue ocean approach could needlessly constrain you. It may be impermanent. Innovations yield imitators, which means a blue ocean could easily become a red ocean with time. Even if a blue ocean strategy feels ideal for your business right now, it could cease to be possible in the long term.
How to implement a blue ocean strategy
Kim and Mauborgne’s book suggests taking the following steps to implement a blue ocean strategy:
Figure out a starting point for introducing your new offerings, and hire employees who will help you build the strongest team and brand identity. Assess your current team’s strengths and weaknesses, and determine how to improve them. Identify pain points that your current and new customers might have. Develop products and services that address these pain points in ways unlike any other business. Write a formal plan for your shift and test your new products and services (and the processes you’ll take to get there).
Tip: Conduct a SWOT analysis to help your team members grow their strengths and boost their personal development, becoming the best versions of themselves.
Examples of blue ocean strategy
The blue ocean strategy might sound new, but businesses have been successfully using it for quite some time – even before Kim and Mauborgne named the approach. Here are three examples.
Ford
When household-name automotive company Ford launched its now-legendary Model T series, most manufacturers were customizing cars to each buyer’s needs. This approach led to high prices and inconsistent quality.
By contrast, the Model T came in just one color and model for every customer. The lack of customization led to lower prices and more consistent quality. Ford’s approach became the basis of the modern auto industry.
Nintendo
When Nintendo introduced the Wii in 2006, the company avoided competing with the Xbox and Playstation on graphics. Instead, Nintendo prioritized wireless motion-control gameplay that was unavailable on other systems. That’s how Nintendo was able to introduce more interactive, physical games like the Wii Sports series. The games’ popularity – as well as that of the console – grew rapidly.
Netflix
Netflix has successfully employed the blue ocean model twice. Reed Hastings and Marc Randolph founded the company as the first-ever mail-order DVD rental business in 1997. Of course, Netflix eventually introduced the streaming TV model that permeates virtually every aspect of modern life. In both cases, the strategy paid off and made Netflix a household name on the level of Walmart or Amazon.
Did you know? Other companies that have used blue ocean strategies include Apple, Yellow Tail, Amazon and Home Depot.
Finding blue oceans
While they avoided mentioning Harvard Business School’s Michael E. Porter by name, Kim and Mauborgne attacked his famous five forces market analysis head-on. Porter’s model looks at specific factors that help determine whether a business can be profitable based on other businesses in the industry.
Advocates of Kim and Mauborgne’s strategy would say this tactic promotes merciless competition, remaining in the red ocean.
The key to exceptional business success, Kim and Mauborgne say, is to redefine the terms of competition and move into the blue ocean, where you have the water to yourself. The goal of these strategies is not to beat the competition, but to make the competition irrelevant.
To discover an elusive blue ocean, Kim and Mauborgne recommend considering what they call the “four actions framework” to reconstruct buyer value elements in crafting a new value curve. The framework poses four key questions.
Raise: What factors should be raised well above the industry’s standard? Reduce: What factors resulted from competing against other industries and can be reduced? Eliminate: Which factors that the industry has long competed on should be eliminated? Create: Which factors should be created that the industry has never offered?
This exercise forces companies to examine every factor of competition, guiding leaders to discover the assumptions they unconsciously make while competing. They can then search for blue oceans within their industries and make the shift.
Tip: When conducting a competitive analysis to improve your business and better serve your customers, be honest about your competitors’ strengths and success.
Blue ocean strategy in practice
Kim pointed out how Amazon has shifted from an online retailer to a digital platform that sells practically anything.
“Just think of its initial blue ocean shift in book retailing that separated it from the pack with its offering of the largest selection of books in the world, good prices, automatic confirmation of buyers’ orders, its useful selection on ‘people who bought this book also bought,’ and firsthand reviews on what readers found useful or not in a book,” he said.
Amazon isn’t always successful in creating blue oceans, however. According to Mauborgne, it failed in a few instances – against Zappos, eBay and Apple.
“In each of these cases, the companies Amazon went up against had all created blue oceans of their own, and whenever Amazon tried to imitate them, they failed,” Mauborgne said. “The lesson here is that the best defense is offense, and the best offense … is to make a blue ocean shift and create your own blue ocean. Imitation is not the path to success, especially in the overcrowded industries most companies today confront.”
Another company that created a blue ocean shift is Home Depot, which made an original value-cost frontier that led to the multibillion-dollar DIY market, according to Kim.
“When they saw Amazon encroaching upon their space, instead of competing head-on … they doubled down on offering what Amazon could not – knowledge and advice to complete complex do-it-yourself projects such as renovating your bathroom on your own,” he said.
Making the shift to a blue ocean strategy
When there is limited room to grow, businesses should try to look for verticals to find new sectors where they can enjoy uncontested market share. The aim is to capture new demand with a superior product that makes competition irrelevant. Unfortunately, this isn’t always successful.
As stores continue to expand and American shopping habits change, retailers are struggling financially. Stores such as Nine West, Claire’s and the Bon-Ton stores are a few among the multitude of companies that have filed for bankruptcy in the last several years.
For struggling businesses, Mauborgne recommended the strategy canvas, which is featured in her newer book with Kim, Blue Ocean Shift: Beyond Competing. A strategy canvas is a one-page analytic that helps businesses focus on an industry and its key competing factors.
“It drives you to take a hard look at yourself as the market sees you,” Mauborgne said. “If retailers applied it, they’d quickly discover that they all compete in the same space they have for 30 years, and all are near mirror images of one another. That creates a real wake-up call, gets everyone aligned, and creates a strong impetus for change.”
Her ultimate advice for businesses is to stop competing and start creating.
Carlyann Edwards and Kayla Harrison contributed to the writing and reporting in this article. Source interviews were conducted for a previous version of this article.
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키워드에 대한 정보 blue ocean strategy
다음은 Bing에서 blue ocean strategy 주제에 대한 검색 결과입니다. 필요한 경우 더 읽을 수 있습니다.
이 기사는 인터넷의 다양한 출처에서 편집되었습니다. 이 기사가 유용했기를 바랍니다. 이 기사가 유용하다고 생각되면 공유하십시오. 매우 감사합니다!
사람들이 주제에 대해 자주 검색하는 키워드 The Explainer: Blue Ocean Strategy
- 동영상
- 공유
- 카메라폰
- 동영상폰
- 무료
- 올리기
The #Explainer: #Blue #Ocean #Strategy
YouTube에서 blue ocean strategy 주제의 다른 동영상 보기
주제에 대한 기사를 시청해 주셔서 감사합니다 The Explainer: Blue Ocean Strategy | blue ocean strategy, 이 기사가 유용하다고 생각되면 공유하십시오, 매우 감사합니다.
