Is the new strategic logic behind blue ocean strategy?

The logic behind blue ocean strategy is counterintuitive: It’s not about technology innovation. Blue oceans seldom result from technological innovation. Often, the underlying technology already exists—and blue ocean creators link it to what buyers value.

What makes blue ocean strategy different from other strategies?

Under traditional competitive strategy differentiation is achieved by providing premium value at a higher cost to the company and at a higher price for customers. Blue ocean strategy, by contrast, is about breaking the value-cost trade-off to open up new market space.

What is blue ocean strategy explain in detail with latest real life examples?

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 blue ocean strategy effective?

Blue ocean strategy is an opportunity-maximising risk-minimising strategy. Of course any strategy will always involve risks – be it red or blue. However, blue ocean strategy provides a robust mechanism to mitigate risks and increase the odds of success.

Why is it important for your business to consider a blue ocean strategy?

“In blue oceans, businesses create demand rather than fight over it.” In blue oceans, businesses create demand rather than fight over it. This strategy is the simultaneous pursuit of differentiation and low cost in an uncontested market space.

What is the importance of Blue Ocean strategy?

Based on the ingenious strategy developed by W. Chan Kim and Renee Mauborgne, a Blue Ocean strategy allows brands to develop and thrive within an uncontested market space, while simultaneously making competition irrelevant.

What is blue ocean strategy?

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.

What is a red ocean strategy?

In their classic book, Blue Ocean Strategy, W. Chan Kim & Renée Mauborgne coined the terms ’red ocean’ and ‘blue ocean’ to describe the market universe. 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.

Who coined the term ‘blue ocean’?

In their classic book, Blue Ocean Strategy, W. Chan Kim & Renée Mauborgne coined the terms ’red ocean’ and ‘blue ocean’ to describe the market universe.

Why is competition irrelevant in a blue ocean?

In blue oceans, competition is irrelevant because the rules of the game are waiting to be set. A blue ocean is an analogy to describe the wider, deeper potential to be found in unexplored market space. A blue ocean is vast, deep, and powerful in terms of profitable growth.