Blue Ocean Strategy
Blue Ocean Strategy was originally published by Kim and Mauborgne (see source below). Marcel van Assen, Gerben van den Berg and Paul Pietersma have done a good summary of the Blue Ocean Strategy and how it can be used in the book Key Management Models, here is parts of that summary. For more information have a look in one of the sources below.
Blue Ocean Strategy focuses attention on the creation of new markets at the product development stage. The concept is designed to encourage managers to focus on the creation of uncontested markets.
Most strategic models focus on achieving competitive advantages: the central question being how to be better than competition. The Blue Ocean Strategy model does not focus on winning from competitors, but on making competition irrelevant by creating blue ocean opportunities. Blue oceans a re uncontested marketplaces in which new demands of customers are satisfied. Red oceans, in contract, are competitive arenas in which competitors fight and consequently weaken each other.
Blue Ocean Strategy focuses attention on the creation of new markets at the product development stage. The concept is designed to encourage managers to focus on the creation of uncontested markets.
Most strategic models focus on achieving competitive advantages: the central question being how to be better than competition. The Blue Ocean Strategy model does not focus on winning from competitors, but on making competition irrelevant by creating blue ocean opportunities. Blue oceans a re uncontested marketplaces in which new demands of customers are satisfied. Red oceans, in contract, are competitive arenas in which competitors fight and consequently weaken each other.
Blue Ocean Strategy is not a well-structured plan that is easy to implement. It is a concept that can be used to focus strategic development. In product development it is essential to focus on customer value instead of on competitors or core competencies. In this process these four questions needs to be answered:
- Which of the factors that our industry takes for granted should be eliminated?
- Which factors should be reduced well below the industry’s standard?
- Which factors should be raised well above the industry’s standard?
- Which factors should be created that the industry has never offered?
Source:
Marcel van Assen, Gerben van den Berg, Paul Pietersma, Key Management Models 2nd Edition, 2009, Harlow (link to latest edition)
W. Chan Kim and Renee Mauborge, Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant, (link to latest edition)
Marcel van Assen, Gerben van den Berg, Paul Pietersma, Key Management Models 2nd Edition, 2009, Harlow (link to latest edition)
W. Chan Kim and Renee Mauborge, Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant, (link to latest edition)
