What type of strategies can be formulated using the Blue Ocean approach?
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 and capturing uncontested market space, thereby making the competition irrelevant.
Is Amazon a blue ocean strategy?
As of May 2017, Amazon was ranked 'the most innovative company' and the world's fourth-largest company by market capitalization. Blue ocean strategy concepts are applied to analyze Amazon's market-creating strategic logic for future growth.
What is the meant by blue ocean compared to Red Ocean in reference to competition what is meant by new market spaces?
Cutthroat competition turns the ocean bloody red. Hence, the term 'red' oceans. Blue oceans denote all the industries not in existence today – the unknown market space, unexplored and untainted by competition.
How do you build a blue ocean strategy?
What are the five steps to making a Blue Ocean Shift?
- Select the right scope for your blue ocean initiative and build your people's confidence.
- Get clear about the current strategic landscape.
- See the pain points of your industry as opportunities.
- Go from the big picture to creating practical blue ocean options.
- Launch your blue ocean move.
Is Netflix a blue ocean strategy?
Another interesting example of a company that was able to successfully apply the blue ocean strategy is Netflix. The company became the first streaming content provider that included movies, TV shows, and documentaries. Netflix was able to create its own demand rather than compete for it with others.
What is Blue Ocean Strategy example?
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.
Is Apple a blue ocean strategy?
Apple has risen 8,000%. While most of us prefer the competition in red oceans, so far Apple has demonstrated what Blue Ocean Strategy authors claimed, that it is more profitable to find blue oceans. And they've shown us they can do it.
What does Blue Ocean mean?
Definition: 'Blue Ocean Strategy is referred to a market for a product where there is no competition or very less competition. A blue ocean exists when there is potential for higher profits, as there is now competition or irrelevant competition.
Why is it called blue ocean strategy?
from the theory of the Blue Ocean strategy) and the company who found it starts in this market, then it creates a blue ocean, as Kim and Mauborgne suggest. The term 'blue' here refers to a beautiful, clear and competitor-free ocean where no blood has flown.
Is Tata Nano a blue ocean strategy?
5. Is Tata Nano a Blue Ocean Strategy (BOS) ? According to Kim and Mauborgne, in a Blue Ocean Strategy, one creates uncontested markets space where the competition is irrelevant, invents and captures new demand, and offers customers a leap in value while also streamlining the cost.
What is Blue Ocean vs Red Ocean?
Cutthroat competition turns the ocean bloody red. Hence, the term 'red' oceans. Blue oceans denote all the industries not in existence today – the unknown market space, unexplored and untainted by competition. Like the 'blue' ocean, it is vast, deep and powerful –in terms of opportunity and profitable growth.
What is red ocean strategy with example?
A good example of Red Ocean Strategy is the European airline operator Ryanair (or Southwest if you like in the US). They are competing very successfully in the already saturated red ocean of the short-haul airline business. Their strategy is focused on providing a low-cost no-frills airline.
What are red ocean strategies?
Red Ocean Strategies
A red ocean strategy involves competing in industries that are currently in existence. This often requires overcoming an intense level of competition and can often involve the commoditization of the industry where companies are competing mainly on price.
How do I make my competition irrelevant?
5 Ways to Make the Competition Irrelevant
- Create Differentiation. Create differentiation within your own products or services.
- Focus on the Moment of Truth. Focus on the moment of truth, the place or position that your products or services will be offered to the customer.
- Good, Better and Best.
- The Value Proposition.
- Plan, Do, Measure and Adjust.
- Words of Wisdom.
Why Blue Ocean Strategy is important?
Blue ocean strategy teaches a clear but important lesson for the future: Identify an untapped market, engage in value innovation, and create something that that world hasn't seen before.
Is Airbnb a blue ocean strategy?
Both Uber and Airbnb are great examples of the blue ocean strategy. By allowing homeowners to monetize their spaces and travellers to book them instead of hotels, Airbnb has found a new market, a big one.
What is Blue Ocean Strategy Canvas?
The Strategy Canvas is an analytic tool, developed by W. Chan Kim and Renée Mauborgne, that is central to Blue Ocean Strategy. It is an excellent companion tool for analyzing, formulating and communicating your strategy, whether you are an expert strategist or just getting started in Blue Ocean Strategy.
What is Blue Ocean Strategy and red ocean strategy?
Customer Focus Red Ocean strategy focuses on existing stream of customers. Blue ocean strategy focuses on creation of new customers. System Approach In Red Ocean strategy system approach is towards low cost and differentiation In Blue Ocean strategy system approach is towards creativity and innovation.
How Apple's corporate strategy drove high growth?
Apple created future profits and growth not by exploiting existing demand, but by reconstructing industry boundaries to create new market space and unlock latent demand.
Is Blue Ocean strategy sustainable?
Under blue ocean strategy, an organization succeeds when all three strategy propositions pursue both differentiation and low cost. It is this alignment in support of differentiation and low cost that ensures a successful blue ocean strategy that has sustainability.