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.

What is wrong with the blue ocean strategy?

A final risk of Blue Ocean Strategy is that it can lead companies to oceans that are blue for a very good reason. Oceans can be dead, empty, and impossible for most species to survive in. Along the same line “markets” may be uncontested for a very good reason: because there is no market.

Why is blue ocean strategy useful?

The goal of a Blue Ocean Strategy is for organizations to find and develop “blue oceans” (uncontested, growing markets) and avoid “red oceans” (overdeveloped, saturated markets). A company will have more success, fewer risks, and increased profits in a blue ocean market.

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.

What is required for a blue ocean strategy to succeed?

To build humanness into the blue ocean shift process and help people develop the confidence to act, Chan Kim and Renee Mauborgne have identified three elements that address different aspects of our humanness: atomization, firsthand discovery, and the exercise of fair process.

Is blue ocean strategy still relevant today?

Even today, Blue Ocean Strategy is still one of the international best selling business book of all time but more importantly it has evolved into a consulting practice which have grown all around the world with respective regional centers in Europe, Asia Pacific, North America and Latin America.

Is Uber blue ocean?

Lyft and Uber correctly saw the nascent ridesharing market as a red ocean. Despite dreams of a future where spend would shift from personal car purchases to ridesharing, they could not afford to wait for demand to arrive. In the near-term, supply would outpace demand, making the market much more competitive.

Who uses blue ocean strategy?

Netflix. The first company that used the blue ocean strategy is Netflix, a popular subscription-based streaming service.

How can I improve my blue ocean strategy?

Here’s how you create a Blue Ocean:

1. Define the current reality.
2. Identify a segment of customers who are only interested in or find value in a portion of the features of a product or service.
3. Alter the product or service to be inferior on the aspects that are less valued by your new target audience.

Can a blue ocean strategy be easy to imitate?

In addition, blue ocean strategy is a systems approach that requires not only getting each strategic element right but also aligning them in an integral system to deliver value innovation. Imitating such a system is not an easy feat.

What companies use blue ocean strategy?

Blue Ocean Strategy Examples

• Blue Ocean Strategy Examples:
• iTunes. With the launch of iTunes, Apple unlocked a blue ocean of new market space in digital music that it has now dominated for more than a decade.
• Bloomberg.
• Canon.
• The Ford Model T.
• Philips.
• Quicken.
• Ralph Lauren.

What are the pros and cons of blue ocean strategy?

Blue ocean strategy makes the competition irrelevant by creating a new market space where there is no competitions. There are many pros and cons of this strategy – the main and considerable advantage of this strategy is the first mover benefit in terms of market penetration where the companies see no competition and hence these companies become the king of the market.

Is blue ocean strategy basically a low cost strategy?

Blue Ocean Strategy is described as the ideology of pursuing differentiation and low cost to open up a new market space and create new demand. Done correctly your business is supposed to be more profitable. Companies using this approach are proactive in planning for the future practices of their industry.

What is the cornerstone of blue ocean strategy?

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”.

What can be said about blue ocean strategy?

Blue Ocean Strategy is a marketing theory in which a business enters a market that has little or no competition . The strategy focuses on moving away from an existing market and seaching for new markets . Specifically, these new markets give a company a very high competitive advantage as well as low price/cost pressure.