1. Despite earning the accolade, Top Business Book of
the Year 2005 by Amazon.com, : How to Create
Uncontested Market Space and Make the Competition
Irrelevant, the public's interest has not paralleled the
significance of its business contributions. Blue Ocean
Strategy has been regarded as a revolutionary
business strategy tool. In this article I will provide an
introductory brief of the ideas and principles of Blue
Ocean Strategy's business logic as filtered through my
personal lens.
blue ocean strategy

2. How Blue Ocean Strategy Even Came About Since the sunrise of the
business age companies have battled nose-to-nose in search of
continued lucrative growth in their respected industries Companies fight
a competitive advantage battling over soul of the market place, but have
struggled for delineation However, these tactics which focus on
head-to-head competition should not be the way to generate profitable
growth in the future In a book that challenges everything you thought you
knew about the necessities for strategic achievement, co-authors and
founders of Blue Ocean Strategy W Chan Kim and Renee Mauborgne
dispute that traditional competition-based strategies result in a red ocean
of bloody competition in which rivals are combating over a reduction of
the profit pool Based on a study of 150 strategic moves spanning more
than a hundred years and 30 industries, the authors dispute that lasting
achievement comes not from battling competitors, but from creating "blue
oceans unexploited innovative market spaces ready for growth Such
strategic moves--which the authors call "value innovation"--create
authoritative leaps in value that often make rivals outdated for more than
a decade

4. Blue Ocean Strategy presents a systematic approach to making the
competition irrelevant and outlines principles and tools any business can
use to make and capture blue oceans Milestone works that upend
customary thinking regarding strategy, this book charts a daring
innovative path to winning the future W Chan Kim is the Boston
Consulting Group Bruce D Henderson Chair Professor of Strategy and
International Management at INSEAD Renee blue ocean strategy
Mauborgne is the INSEAD Distinguished Fellow and Professor of
Strategy and Management Example Lets consider how Netflix, online
and rent-by-mail movie business, successfully moved across existing
industry standards and applied Blue Ocean

5. For a moment think of how you rented movies in the late 1990s You had
to drive to the store and rent movies at a moderately high price Worst of
all, you had to return them quickly amidst your business schedule or face
shamefully high late fees This usually meant rushing back to the store by
11:00am Until 1997, when Netflix redefined the way we borrowed movies
Netflix's came up with a 100% consumer-focused way to rent movies as
its business model challenged the existing industry standards Netflix
created its blue ocean by being entirely different from its competition: * It
had no store as movies were selected by clients online

6. This kept costs down for Netflix, and for its consumers * Since movies
were mailed out the public no longer had to drive to plunge them off *
Postage was taken care of by Netflix, getting free of another source of
customer irritation * Delayed fees were eliminated You could keep a
movie as long as you wanted * Movies could also be watched online
This eliminated waiting, and added extensive value for customers

7. * Pricing was set using a flat-fee monthly membership formation, as an
alternative of on a "per movie" basis This gave members more value for
their money Netflix completely changed the way the public rented
movies, and changed how movie rental companies delivered those
movies As an effect, they had full control of the online and rent-by-mail
marketplace for nearly a decade Competition has now crawled in, but
Netflix has had such a huge head start in the business and has
established its brand name that it's going to be tough for the competition
to tremble them It's imperative to understand that companies don't have
to entirely redefine their business or business in order for Blue Ocean
Strategy to work Popularly, blue oceans are created from within existing
organizations

8. It's typically about designing one new product or service and linking it to
what buyers actually wish for; even if they don't comprehend they yearn
for it Key Points: is a way for your business to leave the competition
behind, and go into a market that's open and without interruption Its
cornerstone concepts are that companies can present themselves, and
their clients, value while still increasing above their competition in a
significant way You can apply Blue Ocean Strategy to your business by
exploratory standards and steps that are a given in your business Look
to connect the lines, and classify what your consumers really want from
your company, and what existing problems you can assist work out

9. blue ocean strategy