Review On Blue Ocean Strategy Essays

Review on Blue Ocean Strategy Essays
Review on Blue Ocean Strategy (BOS) BOS is a kind of strategy which be inspires to innovate and
focus on develops new demand and new markets through selling products e.g: Ipod, Ipad instead of
fighting with the competition over the same market share as well as satisfying the same demand
from the customers which is typically done in a red ocean strategy (ROS). In other word, BOS
represent "untapped market space" and the opportunity to gain high profit for the companies. They
urge companies to enhance the value of innovation by focusing more on price, utility, and cost
positions. In addition, companies also suggested creating and capturing their new customers demand
as well as keeping their focus on the big picture, not the numbers. (Kim and ... Show more content
on Helpwriting.net ...
It also helped companies to consider an alternate ways to spot opportunities that will give add value
and competitive advantage in business in order to capture the market demand. The issue arise from
my own perspective is whether BOS can be reliable for the long term success of the companies.
How company want to sustain their high performance and success by focusing more on the
uncontested market space rather than competing in overcrowded industries. This strategy seem
challenging since this strategy focus on capture new market and new demand, which it's required
extra efforts in term of innovation of products and promotion in order to make customers realize
about their product. Even there are some discussions about the blue ocean strategies; however, based
on my review on customers comment said that the practical guidance on how to create them is
limited. Therefore, without usual analytic framework which can be used as guidelines to create blue
oceans as well as effective principles to manage risk, creating blue oceans viewed as too risky for
managers to pursue as strategy for their company. Apart from the negative side, implementing the
BOS can lead the company to become pioneer. So a company that has succeeded on creating a BOS
has many sustainability advantages (Kim and Mauborgne, 2005. The pioneer advantages can be in
... Get more on HelpWriting.net ...

Strategic Analysis: Summary And Analysis Of The Blue Ocean...
1. Summary and Analysis :
Nowadays many new companies have emerged in the markets this will cause a lot of conflicts in the
crowded marketplace in order to stay in the competition, success and gain profits. The competition
is often so severe that some companies cannot sustain themselves and may stop operating.
Therefore, W.Chan Kim and Renee Mauborgne whom are professors of strategic management they
develop a blue ocean strategy as a new way of thinking to make this competition irrelevant and
creating new market space. It is also demonstrates how the companies traditionally work in red
ocean conditions where companies are fighting fiercely against each others to gain a share of the
market.
So what is Blue Ocean?
W.Chan Kim and Renee Mauborgne (2004) state that Blue Ocean is the market that does not exist
today on other word new and unknown market that are still unpopular in the market space, where
demand is produced rather than fought over.
Many companies were success because of the blue ocean strategy such as automobiles, computer
and movie theaters. However, creating a blue ocean requires a good analysis of risk–management
and money. For example, Cirque du Soleil is one of the largest Canada's cultural exports that were
established in 1984 ... Show more content on Helpwriting.net ...
According to Blue ocean strategy including examples article in 1976 Apple was established by Steve
Jobs and Steve wozniak. It is considered as one of the biggest company worldwide. It is concentrate
on manufacturing computer software systems. Blue Ocean strategy was used by Apple Since 2001,
this strategy makes them successful. Hence, Apple creates its own future profits and growth through
inspiring new market space and ignoring demand. They does not care about what their competitors
provides in the market as they believe that their brand name is known every ware and many people
are loyal to them and they doesn't attractive to another brand like

Analysis: Red And Blue Ocean Strategy
Phase One – Understanding the Basics of Marketing
1. Value – is customer's idea about value of the product. customer evaluate the benefit and cost of
one product to another.
2. Elements of Value– there 4 four elements of value . social impact , life changing , emotional and
functional .
3. Value Proposition and elements of VP – it's a statement given by the company to make the
consumers to under the difference the product or service gives when compared to others.
Few elements of value proposition is customer needs and insights , promise of value , competitive
differentiation , proof and qualification . 4. Product Market Fit – being in a good market, where the
product satisfies the needs ... Show more content on Helpwriting.net ...
39. Red and Blue ocean strategy
Red ocean strategy – is to improve the market share in the current market and creating demand
beyond expectations.
Blue ocean strategy – is process of making new market and new demand by combination
differentiation and low cost strategy.
40. Vision, Mission and Values –
Vision – it's a statement which gives goals of the business in present and future .
Mission – the statement which gives why the business and what it does .
Value – the statement gives information about beliefs on people/business , that focuses on its needs .
41. Strategic Business Units (SBU)– It is a part of a larger organization that operates independently
on a certain sets of products and its behaviour .
42. Micro and Macro – Marketing Environment (Political, Cultural, Technological, Natural, Legal
and – micro – employee, suppliers, competitors, customer, general people and intermediators are
directly linked with the company and influence
Macro – demographical, economic, political, legal, and social factors are directly linked with the
company and

Strategic Information Management
| |
|THE COMPARISON OF |
|BLUE OCEAN STRATEGY AND RED OCEAN STRATEGY |
| |
|Author – Rukshan Fernando |
| ... Show more content on Helpwriting.net ...
3. Red Ocean and Red Ocean Strategy
The Red Ocean could be defined as the existing market space which is currently used globally.
Where the boundaries have been created and followed by each and every competitor in the market.
In the Red Oceans firms try to outperform their rival's or competitors in order to obtain a greater
market share. Since the Red Ocean acquire a highly competitive environment the profits and
development of the firms who compete in the Red Ocean is reduced. A Red Ocean strategy could be
defined as a strategic decision taken by firms to compete in the existing market using conventional
methods of outperforming the competitors in the market. The Red Ocean strategy focuses on
competing in an already existing market which has a number of competitors also in it. Firms
implementing the Red Ocean strategy emphasize on beating the competition in the market through
the production of better quality goods and services than the existing products and services in the
market yet at a higher price. The Red Ocean strategy also focuses on the existing demand and is
dependent on reducing the production cost along with a well executed marketing strategy in order to
obtain a high market share. Firm who implement the Red Ocean strategy make to strategic decision
about obtaining a better market share namely product

Blue Ocean Strategy
www.hbr.org
Competing in overcrowded industries is no way to sustain high performance. The real opportunity is
to create blue oceans of uncontested market space.
Blue Ocean Strategy by W. Chan Kim and Renée Mauborgne
Included with this full–text Harvard Business Review article: 70 Article Summary The Idea in
Brief–the core idea The Idea in Practice–putting the idea to work 71 Blue Ocean Strategy 80 Further
Reading A list of related materials, with annotations to guide further exploration of the article's ideas
and applications
Reprint R0410D
Blue Ocean Strategy
The Idea in Brief
The best way to drive profitable growth? Stop competing in overcrowded industries. In those red
oceans, companies try to outperform rivals to ... Show more content on Helpwriting.net ...
The tagline for one of the ﬁrst Cirque productions is revealing: "We reinvent the circus." Cirque did
not make its money by competing within the conﬁnes of the existing industry or by stealing
customers from Ringling and the others. Instead it created uncontested market space that made the
competition irrelevant. It pulled in a whole new group of customers who were traditionally
noncustomers of the industry–adults and corporate clients who had turned to theater, opera, or ballet
and were, therefore, prepared to pay several times more than the price of a conventional circus ticket
for an unprecedented entertainment experience. To understand the nature of Cirque's achievement,
you have to realize that the busi–
harvard business review october 2004
page 71
Blue Ocean Strategy
W. Chan Kim (chan.kim@insead.edu) is the Boston Consulting Group Bruce D. Henderson Chair

Professor of Strategy and International Management at Insead in Fontainebleau, France. Renée
Mauborgne (renee.mauborgne@ insead.edu) is the Insead Distinguished Fellow and a professor of
strategy and management at Insead. This article is adapted from their forthcoming book Blue Ocean
Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant (Harvard
Business School Press, 2005).
ness universe consists of two distinct kinds of space, which we think of as red and blue oceans. Red
oceans represent all the industries in existence today–the known market space. In red

Compare And Contrast Red Ocean And Blue Ocean Strategy
What are the different features in Red Ocean and blue ocean strategies? Discuss five Blue Ocean
Strategies for a Tea exporting company.
The blue ocean strategy is a new way of thinking and a new path to wining the future. It's about
creating a new market instead of competing with existing ones while keeping the costs low.
Moreover, it enables us to concentrate on the creation of new markets via new offerings, with the
aim being to make the competition irrelevant so that an organization can grow.
The red ocean strategy is a strategy which is aims to fight and beat the competition. Red Oceans
already contain a number of competitors and rivals to grab a greater share of existing demand. Red
ocean can differentiate from Blue Ocean in following ... Show more content on Helpwriting.net ...
Thus, UK people believe that inequalities amongst people should be minimized. So, it can be
expected that UK management will treat estate workers in equal manner.
When consider the second dimension called individualism vs collectivism, UK is a individualist
country while Sri Lanka is collectivism country. Accordingly, UK management teams normally take
decision, but estate worker will not have any opportunity to involve in decision making. And also
their leadership style is more autocratic. UK management team will more self interest and
competing to achieve goals as well as in conflict handling the will be compete. Direct
communication will be used with estate workers.
Then, UK is a Masculine country that people are powerful in decision making and more tendencies
to have charismatic leader in UK management team. Sri Lankan estate workers concerns, they are
more like work with flexible leaders and they don't have experience in work with charismatic
leaders. So, it may cause to create conflict with management. Accordingly, if the management of a
large tea estate is handed over to Unilever UK, motivation factors may differ among Masculinity
and Femininity culture. Then, management will try to motivate employees by giving material
rewards. But Sri Lankan estate workers are expecting Recognition or affiliation as they are

Swot Analysis Of Blue Ocean Strategy
Introduction
I have done research on Mr Price clothing stores as a division and I will use the Blue Ocean strategy
namely, a swot analysis, porter five force model, integration of sales and other costs, the attached
newspaper article as well as a quantitative risk assessment. It is through these factors in which I will
assess their already existing strategic plan and to think creatively to draft a viable strategic plan for
the company's future and to also give recommendations on how to improve.
Background of Mr Price Clothing Stores (Executive summary)
The launching and opening of the first Mr Price group store was in 1987 in Durban, Brickhill Road
and within 3 years from when the first store was opened, there was a total of 19 Mr Price Factory
stores. At about 1991, their current CEO, McArthur was elected as the managing director of the
chain stores and his first marketing based decision was to focus on ... Show more content on
Helpwriting.net ...
–Threat of substitutes:
To eliminate the threat of customers possibly opting for a product similar to what Mr Price offers,
they need to monitor and differentiate their products to be in alignment to what the customers want.
For examples, a consumer may feel it is better to buy thing from one of their competitors as they
have similar products and items.
Comment on Porter five force model: According to the Porter five force model, rivalry is high,
which means the competition environment is tough and Mr Price is fighting for market share
percentage as if all the rivals. They need to come up with creative ways to create an uncontested
market share in order to make their competition irrelevant.
PESTLE Analysis
–Political (Demographic)
They cater for all races (multiracial), both female and male people who are in their early teenage
years right through to the age of 24. They target mostly middle class income

Blue Ocean Strategy At France 's Insead Business School
Life is full of games, in which we always want to be the winner. Most of the time, to accomplish
this, we are ready to do whatever it takes to win without thinking how it effects others around us and
this leads the game to get bloody and the players to be merciless. The same pattern of struggle for
winning and the sense of game is relevant in the business world. In their book Blue Ocean Strategy,
W. Chan Kim and Renée Mauborgne – strategy professors at France's INSEAD business school,
proved that in this sphere, games don't always have to be this bloody by conveying a world where
companies profit and grow in a competition free environment. Reading and discovering more than
150 business researches, Kim and Mauborgne help us to discover the idea of this sphere, so called
blue ocean, which became an essential in strategic business thinking. In this review, we are going to
summarize and analyze the strategies which Kim and Mauborgne conveys. Blue Ocean Strategy
advocates that for a company to be successful, creating and opening a new market space that no one
has entered before is essential. In order to gain and to sustain the value–innovation, every single
corporate and business owner should create and discover contentious areas of the market that is
ready to grow. This market place is called the 'blue ocean ', a term that should be, but still is not, a
keystone for the managers. The book accepts the fact that this strategy is not seen applicable enough
by saying "too risky

Blue Ocean Strategy
Blue ocean strategy
The maturity of an industry has brought a company swimming in a red ocean, which means price
war strategy, according to a bestseller book titled Blue Ocean Strategy that is written by W. Chan
Kim and Renee Mauborgne. This situation influences the way a company evaluates its strategies and
effectiveness regularly. Each company has a particular business culture, which is suitable only for
the company in a specific industry. This condition may not be suitable when the industry changes or
the company is acquired by another company at bigger size.
There are some conditions that influence how companies take care of competitive markets. They
include strong corporate culture, employees learning and development attitude, ... Show more
content on Helpwriting.net ...
Battle between Gillette and Schick
The battle of one–upmanship between Gillette and Schick also happens in any other industry where
few companies dominate a market of particular products. The reason to perform the one–upmanship
model is the company considers that their products have a particular lifetime, which raises the need
to improve or even change the design, features, and product benefits. This so–called product life
cycle also help the company to manage product in respond to some factors such as customers'
demands, technological changes, amendments in regulation, and many others (Kotler, 2003; Internet
Center for Management and Business Administration, 2004).
In Gillette case, it is obvious that Gillette compete in the increasing number of blades with the
competitor, Schick–Wilkinson Sword. This battle is obvious as each entity strives for introducing
new blades products such as Gillette's 3–bladed product, Mach3, which is responded by Schick 4–
bladed Quattro and later countered by Gillette 5–bladed Fusion (Cengage, 2011).
So, in Gillette case the battle of one–upmanship is still valid and effective as customers still value
the product innovation of razor and blades as the way of improved product benefits. Still, there is
still a room for improvement for Gillette, considering that P&G has the most advanced and sensitive
market research

Blue Ocean Strategy At France's Insead Business School
Life is full of games, in which we always want to be the winner. Most of the time, to accomplish
this, we are ready to do whatever it takes to win without thinking how it effects others around us and
this leads the game to get bloody and the players to be merciless. The same pattern of struggle for
winning and the sense of game is relevant in the business world. In their book Blue Ocean Strategy,
W. Chan Kim and Renée Mauborgne – strategy professors at France's INSEAD business school,
proved that in this sphere, games don't always have to be this bloody by conveying a world where
companies profit and grow in a competition free environment. Reading and discovering more than
150 business researches, Kim and Mauborgne help us to discover the idea of this sphere, so called
blue ocean, which became an essential in strategic business thinking. In this review, we are going to
summarize and analyze the strategies which Kim and Mauborgne conveys.
Blue Ocean Strategy advocates that for a company to be successful, creating and opening a new
market space that no one has entered before is essential. In order to gain and to sustain the value–
innovation, every single corporate and business owner should create and discover contentious areas
of the market that is ready to grow. This market place is called the 'blue ocean ', a term that should
be, but still is not, a keystone for the managers. The book accepts the fact that this strategy is not
seen applicable enough by saying "too risky

Case Study : Blue Ocean Strategy
Blue Ocean strategy:
There are some tool produce to help implement blue ocean strategy. The Eliminate–Reduce–Raise–
Create (ERRC) Grid is the matrix that help execute blue ocean strategy with the four action
framework: eliminating, reducing, aising and creating. ERRC Grid help company to remain on their
competitive factors. Eliminating and reduce the factor that the transitional industry take it for
granted can help the new strategy to remain unique from the transitional market. Nevertheless,
raising and creating some unique competitive factor the transitional market never or seldom offered
that is above the industry standard. With all these "Four Actions Framework" the company can
escape the transitional red ocean market by activate a new blue ocean market and create a new value
curve. (Kim & Mauborgne, 2005)
According to Professor W. Chan Kim and Professor Renée Mauborgne "Blue ocean strategy makes
sense in a world where supply exceeds demand". (Kim & Mauborgne, 2005). The real estate market
in Taiwan is the case of the supply exceeds demand at the unstable equilibrium. If the real estate
industry could implement blue ocean strategy to come out with a new demand with an uncontested
market space that separate from the transitional real estate market, the house market would
gradually move to a normal stable equilibrium by establish a bond of value for both suppliers and
buyers. In the Blue Ocean strategy, company create a new strategy with the different value
proposition

Blue Ocean Strategy, A New Theory That Proposed By W. Chan...
Brief introduction of Blue Ocean Strategy
Blue Ocean Strategy, is a new theory that proposed by W. Chan Kim and Renée Mauborgne in 2005
after had studied 150 real cases that distributed in 30 industries. The core idea of the blue ocean
strategy is not to arise more competitions, but to establish a new market, so there is no contest. Blue
ocean strategy offers a systematic and effective method for corporations.What is the Blue Ocean
Strategy exactly meaning about? There are contents of what Blue Ocean Strategy want to express to
the audience: The first, it wants to tell is that avoid the current competition, and create a new market
included no contest. And then , because the new market exists the no contest, relevantly, the
competition is ... Show more content on Helpwriting.net ...
Nevertheless a brief explanation as to what BOS is all about might be in order. As in most other
strategic models, the ultimate aim of strategising is that by the action, the company would be at an
advantage over the competitors. Thus the two general models such as the Strength–Weaknesses–
Opportunities and Threats (SWOT), and Strategic Positioning and Action Evaluation (SPACE) are
done diffrently than the portfolio models of Boston Consulting Group (BCG) and SHELL/GE. But
they all generate strategies for the agencies. And what is common to all, are that they utilise and
consider two sets of variables, namely the external and the internal variables before the various
strategic choices are generated. The SWOT model will have a set of external variables (list of
opportunities and threats) being paired with the internal variables (list of strengths and weaknesses)
and from which alternative strategies are generated (David 2006). Similarly the SPACE model
would pair two sets of internal variables (average score of Financial Strengths and Competitive
Advantage) with the external variables (average score for the Industrial Attractiveness and
Environmental Stability) and the average of all the four dimensions would give an idea of what
strategic choices would best fi the agency concern (Mintzberg 2003 ).Then there are the portfolio
models (BCG, Shell, GE) where various portfolios could be viewed in one chart and strategies
would depend on the portfolios in their

Blue Ocean
Blue Ocean Strategy
Jaime Quintero
MKT/421
March 23, 2015
Salomon Chavira
Blue Ocean Strategy
While businesses are continuously looking for techniques in which they can better cope with their
rivals, one theory recommends they would be better off studying methods in which they are
contending against no one but themselves. This is known as the blue ocean strategy.
Blue Ocean Blue Ocean Strategy is a recently established marketing concept obtained from the
devises of W. Chan Kim and Renée Mauborgne. This term is used to describe instead of working in
conditions, known as the red ocean, where companies are savagely hostile against each other for a
share of the marketplace, businesses should attempt to discover a means to work in a ... Show more
This is a positive aspect, since it stops one lone syndicate from dominating the market and drives
other companies to generate more Blue Ocean encounters, therefore bringing innovation.
Alternatively it does a drawback, since this form of movement tries to simulate another product, the
superiority occasionally is deficient and as developments are relentlessly being made it proves
challenging to remain current. These transitions are remarkable for the economy nonetheless can be
a monetary disadvantage to "everyday" working households who cannot afford the upgrades.
Android technology is Apple's chief rival. They have also aligned themselves with a number of cell
phone providers to make their service readily available to customers.
Conclusion
The Blue Ocean Strategy has exceptionally authoritative, exemplar changing theories that can be
employed by any organization to start a sizeable migration from the red ocean they have shared and
begin to improve to a blue ocean overflowing with prosperity and accomplishment. It is apparent
that the Android and Apple has influenced the cell phone industry. Apple is an illustrious example of
Blue Ocean tactics; whereas Android and the Smart phone are a Red Ocean migration in the same
industry. Although they began with the personal computer, Apple has been able to expand and
detach themselves from their competitors by offering a "wow" factor, announcing components and

Strategy And Execution Of The Blue Ocean
To shift from Red Ocean to blue ocean, emphasis must be made to the six principles/steps that leads
to the formulation and execution of the blue ocean strategy. Chan and Maubourgne identified that
the first step to create the blue ocean strategy is to reestablish the market limit to breach competition
so that the blue ocean becomes apparent using the six–path framework. The challenge a company
faces in order to succeed is spotting the opportunities. The six steps are:
1. Look for possible alternatives with exceptional value to choose from rather than a mere substitute;
2. Examine the industry where the company is in to determine which factors dictates customers to
move from one group to another to stand out in the strategic group the company is in;
3. Question the current market and focus on the previously neglected segment of the market, be it
the purchaser, the user or the buyer;
4. Conceive complementary products and services to create a value curve;
5. Shift buyer's appeal from emotional to functional or functional to emotional; and
6. Identify decisive, irreversible trends that have clear trajectory and implement change to unlock
new opportunities.
The second step to creating the blue ocean is strategizing, by focusing on the big picture – the
performance of the organization, instead of getting caught up in the operational detail. This is what
differentiates those in the Red Ocean from those in the blue ocean. According to the authors, the
four steps to visualize

Blue Ocean Strategy
The impact of Blue Ocean Strategy In the earlier work (See Blue Ocean Strategy: how to create
uncontested market , 2005) it has been argued two types of strategies: blue ocean strategy and red
ocean strategy. Red ocean strategists compete to win market share in traditional mature markets and
pursue either a differentiation or cost leader strategy. On the other hand, Blue ocean strategists,
create new environments, redefine products or services or the nature of competition, make
competition irrelevant, and pursue a strategy of differentiation and low cost. This essay puts an
extend view: the applications of Blue Ocean strategy in real cases, and what is key advantage of
blue ocean strategy? From the researcher's point of view, the ... Show more content on
Helpwriting.net ...
fewer long– term constraints on | |Personal opportunity costs are high |participant) | |Direct costs to
sponsor potentially very high |Lower direct costs to sponsor (student, parents, school) | Table 1.1
According to the Blue Ocean Strategy, The strategy canvas is an analytic framework, which is
central to value innovation and the creation of blue oceans. The strategy canvas captures the current
state of play in the known market space. This allows researcher to understand where the competition
is currently investing, the factors the industry currently competes on in products, service, and
delivery, and what customers receive from the existing competitive offerings on the market. There
are some competitors, which have tremendous success on English training or learning in China. Two
of them are Wall Street English and Dell English International. Founded in 1999,

Blue Analysis : Blue Ocean Strategy
W.Chan Kim and Renee Maugborgne article "Blue Ocean Strategy" and Blue Ocean Strategy: From
Theory to Practice challenges firms to distance themselves from the fierce competition in the
marketplace by utilizing Blue Ocean Strategy versus the dominantly used Red Ocean Strategy. Both
Blue and Red Oceans are distinctly different strategies, both logics are important to understand, and
they both coexist. By understanding by the underlying logic of both strategies companies will be
able to make decisions on what strategy they will prefer to implement. The authors use the colors
Red Ocean (color of bloody water) and Blue Ocean (color of clear water) to visually represent the
amount of competition in the market (water represents the market).
The Red Ocean signifies the entire known market industry today that exists with formidable
incumbents that have set the standards, are visible, and accepted by the industry. The Red Ocean
focuses on competing in the existing market space and everyone is fighting for the demand side of
the equation. The fundamental roots of the orthodox Red Ocean strategy along with company
structure environment can be traced and mirror military strategy and its organization. The color red
in the Red Ocean is symbolic and is used to represent blood that occurs when two rival fight on the
battlefield, and are competing against one another to gain ground. This same Red Ocean metaphor
can be easily understood in the business environment. Rivals are trying to

Blue Ocean Strategy Essay
A Strategy is a plan of action designed to achieve a long term or overall aim (Oxford Dictionary)
A Concept in latin means 'something conceived' (Dictionary.com,).
The United Nations (UN) study which precluded this paper found that populations in the developed
world are declining. For the vast majority of businesses, this means they are going to be fighting for
a smaller slice of the cake. Is it time that organisations start to look elsewhere to ensure that they
stay in business.
Is Blue Ocean Strategy (BOS) a comprehensive strategy or just a trend with little credence or
evidence? Is BOS the answer to many businesses in their hour of need?
This paper will look at BOS in more detail, where it came from and evidence of it working in
practice. It will also look at real life scenarios and the outcome of my own organisation when BOS
was applied.
Part One
In 2004 Chan Kin and Renee Mauborgne wrote a book called Blue Ocean Strategy. Since then over
three and half million have been sold (blueoceanstratergy.com), it has been published in forty three
languages and has been the best seller over five continents. The book has since been updated (2015)
with two extra chapters (HBR 2015) and a slant on which informs the reader of potential red ocean
traps. Not only that, the authors claim the book consults on one hundred and fifty strategic moves,
spanning over one hundred years and across thirty industries.
Many successful business leaders have sought the solutions that BOS

Essay on Blue Ocean Strategy- A Marketing Book
BLUE OCEAN STRATEGY
Blue Ocean Strategy
Introduction
Blue ocean strategy is a marketing book by W. Chan Kim and Renee Mauborgne in the year 2005.
The book mostly borrows from a range of over 140 strategic marketing moves within a period of
over a century. The book succeeds in showing how businesses, can outdo their competitors. Not
because of battling them, rather, because of what the authors refer to as blue oceans, which consists
of uncontested market space.
Body
The book gives a detailed outline of how companies should engage each other in the market wars
while maintaining and bringing on board new customers. They successfully do so by presenting
tools for the implementation of a successful marketing strategy, and the ... Show more content on
Helpwriting.net ...
As there are neither permanent, excellent companies nor industries. To achieve profits through blue
oceans, it is essential that the company conduct a self–analysis of steps that had desired returns, and
the way of simulating them systematically, over a repeated period to achieve Blue Ocean
opportunities.
Most marketing executives would argue that blue ocean opportunities are depleted in the modern
world. It is fascinating to note that the universe is dynamic, and markets are expanding over time,
thus, creating new opportunities each, and every day. Not only does the framework in the book try to
give a solution to the analytical concepts that aided in the creation of the Blue ocean strategy.
Rather, it also highlights on the execution aspect of it. Motivation of employees so that they can
achieve set targets that have been set to achieve blue ocean opportunities. The book identifies two
virtues as key, among the human resources in the journey to the blue ocean opportunities; these are
commitment and trust, As well as, the significance of emotional recognition and intellectual ability.
The book from the exact onset lays out the need to venture into new market space. This is best
explained by Canadian largest cultural export that is the successful, Cirque du Soleil; the authors
attribute the success of this company. To their strategy of exploring new, market avenues for their

Blue Ocean Strategy
STRATEGIC MANAGEMENT
ASSIGNMENT # 5
BLUE OCEAN STRATEGY
October 24, 2014
Case Study
Question 1
Critically analyze the case.
Solution 1
In this case study, the author has discussed different methods and strategies which global firms are
adapting to achieve success and to grow exponentially in their relevant industries. This article has
focused on two strategies, Red Ocean and Blue Ocean particularly. These strategies are used to
define the environment a firm is operating in and to figure out whether they are creating value for
the firm or not. Blue Ocean Strategy is basically to create new uncontested markets solely through
innovation and creativity where demand is created and derived from the market. Whereas Red
Ocean ... Show more content on Helpwriting.net ...
This helped him revive and attain greater revenues over the decade.
Question 2
According to the case why is there an imbalance in favor towards red ocean strategy? What are the
main differences between Red Ocean and blue ocean strategy? According to the case what role does
a corporate strategy play to influence a company's position in an industry, along with pursuing Red
Ocean or blue ocean strategy?
Solution 2
The word "Strategy" has found its birth from the military and has its roots aligned with them. The
military's stance on strategy has always been to defeat the enemy in order to succeed. Which means
that military point of view is that to gain a greater share of land by pushing the enemy towards a
competitive disadvantage and diminishing its share of land. Red Ocean focuses on competing with
the existing rival firms and to increase their market shares by reducing the competing rival firm's
market share.
Corporate strategy basically defines the company's line of action and the direction it is going to

follow. The traditional concept of a corporate strategy with a military school of thought is to capture
the rivalry firm's market share and gain competitive advantage over them which is known as Red
Ocean Strategy. Whereas, Blue Ocean strategy focuses on exploring new untapped markets and
creating demand for a firm's products and services. Question 3
Give one example of a company pursuing blue ocean strategy and one example of a

Blue Ocean Strategy By W. Chan Kim And Renee Mauborgne
Huan Qi (Vicky) (SID: 861179278)
Bus109 section 21
Professor: Sean D. Jasso
16 Oct 2015
Kim, W. Chan and Mauborgne, Renee(2004). Blue Ocean Strategy. Harvard Business Review
The book, which called Blue Ocean Strategy, published in 2005 and written by W. Chan Kim and
Renée Mauborgne. After reading this book, the author wants to tell us that companies can succeed
through creating "blue oceans" of uncontested market place. They don't want to battle all the
competitors. They maintain these strategic moves in order to create a saltation in value for this
company. In addition, all of their buyers and employees by unlocking new demand, it finally makes
the competition irrelevant. In order to foster an organization 's ability, it also shows the analytical
frameworks and tools to create and capture blue oceans by reading this book.
If you read this book, it provide a "road map" and a lot of visualization "tools." people could use its
tools, its "six paths" and walk its road map, you might very well succeed. Your own natural abilities
to work with any non–random framework won out. In addition, this book offers another way of
looking at strategy. For me, blue ocean strategy is another way for companies to outperform others
in a whole new level. Instead of being reactive to what other companies are doing, a company
adopting blue ocean strategy focuses on creating value innovation. The book has multitude of
examples and good ideas on how companies can adopt this mindset.
A blue

Key Imperatives Of Blue Ocean Strategy
To what extent did the growth strategy of the HKET Group follow the key 'imperatives' of a Blue
Ocean Strategy? Explain and use examples from the case to illustrate your points.
To answer this question, first of all we need to know what is Blue Ocean Strategy, how it works and
what are the main points.
Blue Ocean Strategy – what is it?
Blue oceans are uncontested market spaces where the competition is irrelevant... you invent and
capture new demand, and you offer customers a leap in value while also streamlining your cost.
Results? Handsome profits, speedy growth – and brand equity that lasts for decades while rivals
scramble to catch up (Mauborgne, 2007).
Blue ocean is not about technology innovation, you don`t have to venture into distant ... Show more
How was the growth strategy of the Hong Kong Economic Times Group?
In 1980s when the co–founders path crossed, Hong Kong`s economy was booming and
opportunities for all trades and businesses were prevalent. The colony was a magnet for international
trade and manufacturing. Real gross domestic product (GDP) growth throughout the 1980s averaged
5.20%. It was an opportune time for new businesses, and the HKET Group rode this wave of
development (Farhoomand, 2007).
Create and capture new demand
HKET Group published their first paper in January 1988. At this time, their mission was to provide
businessmen, executives, investors and professionals with up–to –date and relevant news, market
information as well as analysis. Their only competitor at the time of launch was Hong Kong
Economic Journal, which focused in economic and related news, and was noted for its editorials and
commentaries.
HKET Group was more than that, they placed their product in a niche to offer business and financial
information to the growing masses of employees in the manufacturing, business and commercial

Creating A Blue Ocean Strategy
According to Michael Porter, "a company strategist who understands that competition extends well
beyond existing rivals will detect wider competitive threats and be better equipped to address them"
(Porter, 2008, p.16). Thinking comprehensively about the structure of the industry as well as its
customers can afford companies the ability to obtain superior performance. Therefore, it is key for
companies to focus on how to maintain existing customers as well as lure new ones.
Three tiers of non–customers
As we have learned from our readings, to create a blue ocean strategy means to reach out to
"untapped market space, demand creation, and the opportunity for highly profitable growth" (Kim &
Mauborgne, 2005, p.4). These blue ocean strategies can exist beyond existing industries/markets or
they can be expanded upon in existing markets (red oceans). Either way, "companies need to go
beyond competing" (p.5). To do so companies should identify and attract non–customers. The three
tiers of non–customers identify different level of non–customers companies can attract to convert
them into new customers. We will discuss these non–customers as it applies to the Apple IPhone.
The first tier non–customers are those smartphone users that are curious about the IPhone and
interested in possible switching. The launch of the IPhone 5 was geared towards two sets of buyers;
existing customers and first tier non–customers. Both sets were disappointed with the previous
IPhones screen sizes. The

Analysis Of Michael Porter 's Value Migration, And W. Chan...
Unit 1– Individual Project
Nicholas Dunlap
Colorado Technical University
There are a number of well know strategic planning models. Of these, I will explain in some detail
three. Michael Porter's Five Forces, Adrian Slywotzky's Value Migration, and W. Chan Kim and
Renee Mauborgne's Blue Ocean Strategy.
The first, Michael Porter's Five Forces, is based on Harvard Business School's professor Michael
Porter's research, originally developed in 1979, which states that business is about who is the most
profitable, not necessarily, the biggest company. Porter states that there is five components to
profitability. These are the buyers, the suppliers, substitute products or services, new competitive
entrants, and lastly, existing rivals. According to Porter, these five segments define literally every
business industry and are the key to creating a more profitable business. To break down each of
these segments a bit more, we will first look at the buyers. In most industries, buyers, or customers,
simply want the best price and the best product. The importance of the buyers is dependent on the
number of buyers available, the individual importance of each, and the cost to obtain and maintain
these buyers, also known as customer acquisition and retention. If your business relies on a few very
powerful buyers vs many smaller less powerful buyers, than it would be reasonable to assume they
would have much more control over how you would need to operate your

The On The Blue Ocean Strategy Essay
Kim and Mauborgne espouses that the key to beat the competition is to stop beating the competition,
but rather to follow the logic of value innovation. Those who want to create a blue ocean strategy for
their company must focus on value innovation that makes the competition irrelevant by the
simultaneous pursuit of differentiation and low cost, thus creating a leap in value for the customers
and an uncontested market space for the company. According to Chan there are three analytical tools
that may be used into the formulation and execution of the blue ocean strategy, tools that must
possess the following characteristics and pass it. It must have a target or focus, which is the value
curve of the company, must be diverse or unique compared to the industry's average profile, and
finally, it must have a well–defined and interest–evoking tagline that delivers and communicates
candidly a very clear message. The first analytical tool is Strategy Canvas, an analytical framework
in a graphical form, that is intended to capture the current state of the market to better understand
the competitors' current investments, factors that the industry is currently competing on, as well as
the benefits derived by the customers from the existing market offering. This gives insight on how to
reevaluate the problem of the industry. The Four Action Framework, another analytical tool that
creates new value curve, defines the factors that should be: 1) eliminated either because the industry

Case Study Blue Ocean Strategy
5. Blue Ocean Strategy In the Blue Ocean, main would be to create an uncontested market space for
Relaxo and make the competition, as observed in Red Ocean, irrelevant. The effectiveness of
strategy would be solely an outcome of Value Innovation and at the same time how the risk has been
analyzed. After SWOT analysis and Red Ocean strategy analysis we found that although the
company is making profit but still this industry is about to reach its saturation and market share
growth is about to stagnant. Most of the market offerings are based on either the differentiation or
the Low cost. Relaxo needs to take some bold move to breakout of the boundaries of Red Ocean by
achieving both the differentiation and the low cost offerings for the noncustomers. To find the value
innovation for Relaxo, we tried to go beyond the existing demand by identifying the three tiers of
non–costumers. 5.1. Three Tiers of Noncustomers First Tier Non–Customers– ... Show more content
on Helpwriting.net ...
The quality of the execution of strategy is depended on their attitudes and behavior. People should
be involved throughout the building and execution of strategy they should feel that they are a part of
it, it should not be something that is forced upon them. Fair process can be implemented for
successful implementation. Relaxo strives to ensure high motivation levels through stimulating work
environment, high growth and outstanding development opportunities with a transparent and
productive work environment. The culture should be such that there is a sense of trust and
commitment that people voluntarily cooperate in implementing and executing the strategy. The HR
function in Relaxo has undertaken important steps in the area of Recruitment, Rewards
Management, Leadership Development for transforming the company. (Relaxo Footwear Limited
Annual report , 2014 –

Blue Ocean Strategy Paper
Blue Ocean Strategy Paper MKT/421 July 21, 2014 Anatomy of Blue Ocean Strategy In order to
process the nature of a blue ocean entity, it is imperative to grasp the point of derivation, which is
otherwise known as a red ocean. A red ocean, which is polar to a blue ocean, generates its namesake
from a literal representation. Imagine a feeding frenzy in the middle of the ocean; the water turns red
with the victim's blood as predators compete for survival. Now, apply this image to economic
conditions. In an open market in any given industry, where there are established standards, barriers,
and rules, competitors in a well–defined saturated industry jockey for market shares from ... Show
more content on Helpwriting.net ...
A think tank was developed from the ground–up where they began making hunting videos that
would showcase their expertise accompanied by their product. This in itself insinuated credibility.
As this concept gained momentum, outsiders caught on to the manufacturers. A realization that the
Robertsons embodied countless qualities that would further market the brand to consumers as the
face of the company would prove to be the discerning factor that would propel them into blue
oceans. When A&E picked up the Robertsons for reality TV, the premise ran along the ideals that
they were to project their unwavering and innate principles, along with their business venture. The
charm of each character created a reality TV phenomenon. They essentially created a market based
off their own marketability. Now, the Robertsons are, "leveraging every ounce of their celebrity
fame [by] publishing books", making appearances, and expanding their brand's tentacles into the far
reaches of every retailer (Huspeni, 2013). Red Ocean Alternative For the sake of argument, the
following will examine the same product should it have remained buoyant in red waters. As it was
previously determined, the defining element of the brand was its marketing push. Should Duck
Commander have settled on its founding design, it would likely have found themselves sharing
market space with other competitors. A lapse in this strategical decision would have stunted profit

What is the Blue Ocean Strategy?
What is Blue Ocean Strategy?
by
Nattida Sae–Iw
MBA Student
What is Blue Ocean Strategy?
Let's start with the metaphors
To understand the term of Blue Ocean, imagine a market universe composed of two sorts of oceans:
Red Oceans and Blue Oceans.
Red Oceans represent the existing market space which is known market. Companies in red oceans
are competitive–base; they are fighting each other and aim to get a bigger market share from their
competitors. The world now is globalized, the competitions are fiercer than ever, they are battling on
the same demand thus this is bloody competition. That's why it's called red oceans.
Blue Oceans are new, defined as unknown ... Show more content on Helpwriting.net ...
Creating new demand instead of striving to do better than competitors
2. Looking for non–customers instead of getting a bigger share of customers
3. Challenging assumptions and reconstructing industry
4. Voluntary participating self– initiated teams
5. Executing strategies while conserving time and resources
Strategies Canvas – Capture both current state and also demand side of alternatives
1. Do dimension on graph: value factors that are important, what your industry focuses on. Graph
the company then graph for your own

2. Look at the frameworks
3. Try to answer 4 questions (New value curve) and review what does the industry curve look like?
And what does your company's curve look like? Then apply four actions frameworks to build a
winning strategy.
Reduce: Which factors should be reduced well below the industry's standard?
Eliminate: Which of the factors that the industry takes for granted should be eliminated?
Raise: Which factors should be raised well above the industry's standard?
Create: Which factors should be created that the industry has never offered?
Blue Ocean is not about taking risk and also not avoiding risk. It's maximizing opportunities and
minimizing risks. Blue Ocean focuses on six different risks that are associated with formulations
strategy.
o Search risk – How you come up with the right idea?

HCAD 790: Practitioner Application 2
Jennifer Chaix
J16006447
September 12, 2017
Turning Today's Bloody Healthcare Market Blue
When discussing healthcare, "blue" and "red" are adjectives typically associated with the color of a
patient's veins and blood. However, from the executive's point of view, these two adjectives mean
something completely different. In the healthcare field, there are two market strategies: red ocean
strategy and blue ocean strategy. "Red Oceans" represent the pre–identified market place which is
comprised of all the types of businesses which are actively participating in the industry day. In
contrast, "Blue Oceans" represent the unknown market place, i.e. all the types of businesses not
actively participating and/or existing ... Show more content on Helpwriting.net ...
Value Innovation is accomplished by creating exceptional value for the customer while,
simultaneously, creating high profits for the company (Pritchett, 2014). At its core, the true goal of
The Affordable Care Act is value innovation; lowering the cost of healthcare and improving patient
outcomes. It is through compliance with these measures that health care providers will realize high
profits. The ACA creates significant barriers for small practices and those who are not willing to
comply with meaningful use measures. Although the healthcare industry is considerably a red ocean,
a blue ocean is attainable. Overcoming the red ocean of healthcare requires one to become more
than just a health care provider. Through the efforts of physician collaboration, electronic health
record system interconnectivity, and establishment of health protocols that witness proven high
outcomes, Ochsner Physician Partners has successfully achieved the blue ocean strategy for the
healthcare industry.
References
Deepali, M., & Swati, S. (2014, September). The Rise of Blue Ocean Strategy and Leadership. The
International Journal of Business and Management, pp. 248–253.
Kaplan, A., & Guest, B. (2012). Clinically Integrated Networks: Vision, Purpose and Development.
Physician Executive, 38(2), 60–66.
Ochsner Physician Partners. (2017, September). Retrieved from https://www.ochsner.org/opp/about–
ochsner–physician–partners/

Pritchett, G. (2014). What Color is Your Ocean?. Central European Business Review, 3(1), 56–57.
Rosenbaum, S. (2011, January–February). The Patient Protection and Affordable Care Act:
Implications for Public Health Policy and Practice. US National Library of Medicine , pp.

Blue Analysis : Blue Ocean Strategy
WHAT IS THE BLUE OCEAN STRATEGY
The term blue ocean was coined by two professors W.Chan Kim and Renee Mauborgne in their
book titled "Blue Ocean Strategy: How to Create Uncontested Market Space and the Make
Competition Irrelevant" (2005).
The authors present the idea of a business being able to operate in a league of its own, without
intense competition. The company is able to set its own pace to create, sell and profit from unique
products and services in high potential new markets. The blue ocean is taken as a metaphor to
represent these industries that may offer greater opportunity or higher profit potential. This is the
goal of any blue ocean strategy, to search for and gain uncontested market space instead of engaging
in traditional ... Show more content on Helpwriting.net ...
Instead, for a company to achieve long term success, there need to be steps taken beyond the
traditional red ocean strategy. For this to happen, companies need to go beyond competing with each
other to take hold of new profit and growth opportunities that can be used to create blue oceans for
their business.
The red ocean strategy takes a structuralist view of the market where all parties accept predefined
structures within an industry and continue to compete within these. To sustain this competition,
companies focus on building advantages over their competition. All gains are at the loss of another
company and wealth is captured and redistributed instead of being created. As a result, wealth
becomes increasingly limited.
The blue ocean strategy is a reconstructionist view of the market where no accepted boundaries or
structure is present. The structure can be created or recreated by the steps taken by players in the
market. Strategy and thinking is not limited by preconceived barriers, and a shift happens from a
focus on the supply side to a focus on the demand side. Value innovation takes precedence over
competing blindly with a simultaneous focus on differentiation and cost effectiveness. An emphasis
on the demand side of the market leads to further wealth creation with high potential for payoffs.
History
In 2005, W. Chan Kim and Renee Mauborgne published their book titled the Blue Ocean

Blue Ocean Strategy: Summary And Analysis Of A Blue Ocean...
1. Summary and Analysis :
Nowadays many new companies have emerged in the markets this will cause a lot of conflicts in the
crowded marketplace in order to stay in the competition, success and gain profits. The competition
is often so severe that some companies cannot sustain themselves and may stop operating.
Therefore, W.Chan Kim and Renee Mauborgne whom are professors of strategic management they
develop a blue ocean strategy as a new way of thinking to make this competition irrelevant and
creating new market space. It is also demonstrates how the companies traditionally work in red
ocean conditions where companies are fighting fiercely against each others to gain a share of the
market.
So what is Blue Ocean?
W.Chan Kim and Renee Mauborgne ... Show more content on Helpwriting.net ...
This means that from the value chain the company can evaluate costs and see if it suit their budget
or not, so if it above their budget they make adjustment to reduce costs to be more efficient. Also,
helps in finding ways to develop company itself (Value Chain Model, 2015). Moreover, some
company used Porter's five forces model to assets the attractiveness of the industry, as this will give
them clear idea in either continue or stop the business. These five factors are supplier power, buyer
power, competitive rivalry, threat of substitution and threat of new entry ("Porter's five forces", n.d.).
In addition, in Blue ocean strategy using Porter's five forces is not good tool, while it is good tool
for red ocean strategy, because it used for companies that already in market. Competitive advantage
means the advantage that any industry has over its rivals that they cannot copy over the time.
Therefore, competitive advantage tolerates any company to survive and to flourish against
competition. As well as, it helps industries to add more value than their rivals in the same market.
Hence, the blue ocean will be the best strategy to use in order to be successful. In terms of Blue
Ocean competitive advantage it is used both differentiation and cost advantage, conversely, Red
Ocean used one of them either cost or differentiation besides the porters five factors. Managerial
actions contain acquisition of other company. As managerial actions for creating a blue ocean it is
not vital to make goods and services to the public or inspecting the external imposes. For example,
in 2001 Compaq was acquired by Hewlett Packard

Analysis Of Blue Ocean Strategy By W. Chan Kim And Renee...
Introduction
There are abundance of business books trying to explain the success or failure of companies in terms
of the characteristics of the companies, their leadership capability, great products ideas etc. But
success of a company is never perpetual and follows a cycle of high and low performance. More
often than not, these companies perform worse than industry, or fail to sustain the growth for a long
time. For example, Hewlett–Packard performed better than market for a long enough time, but did
poorly soon afterwards with same the good products and leadership (Page 10). Therefore, the
company itself is not a very good unit to measure success or failure; it's the strategies the companies
take, which decide the success or failure of the company. And the "Blue Ocean" Strategy, the term
introduced in the book "Blue Ocean Strategy: How to Create Uncontested Market Space and Make
Competition Irrelevant", by W. Chan Kim and Renée Mauborgne, is one, which ensures a company
to have a long stretch of uncontested success away from the competition.
Key Concepts
Red Ocean: A market space filled with several players competing with each other for profit and
market share is a Red Ocean.
Blue Ocean: An unexplored and unknown market space with no competition is a Blue Ocean.
Value Innovation: Offering greater value to customers by reducing factors the industry competes on,
and raising and offering unoffered factors, those the customer values more.
Main Propositions
Most of the times,

Blue Ocean Strategy
Blue Ocean Strategy – Term Paper Texas A&M University–Commerce MGT 528 Table of contents
Introduction 3 Identification of Critical Issues & Analysis 3 Literature Review 4 Structuralist Views
5 Reconstructionist Views 8 Evaluation of Alternatives 10 Pro's and Con's of Both Views 11
Business Model 13 Most Effective Strategy 14 Recommendations 15 Conclusion 15 References 17
Appendices 20 Introduction Corporate Strategy is an important part of the theory and practice of
management. For top management, strategy is what a map or a compass is to a sailor on a ship; it is
a map for navigating the corporate ship ... Show more content on Helpwriting.net ...
Inasmuch, the reconstructionist's entire theory rests upon the principle of value innovation which,
according to Kim & Mauborgne (2005), is a matter of creating powerful leaps in value for the firm
and its buyers, rendering rivals obsolete and unleashing new demand. In direct support, Halligan
(2006) espouses, "The only way to beat the competition is to stop trying to beat the competition."
Converse leanings rest with the structuralist's school of thought which favors ferocious head–to–
head competition. Structuralist Views According to Ormanidhi & Stringa (2008), how firms
compete and what strategies they choose are imperative questions for companies in every sector of
the business world. Their writings state that improved understanding of a firm's competitiveness
would serve as input to improve policies concerning competition and related issues; and improved
policies, will provide valuable support to efforts to continuously develop markets and businesses.
Within, the author's place significant emphasis on the concept of competition with echoes from
Porter's five forces model (see Appendix 6). The model illustrates the five forces, which hinge on
the determinants of the industry's overall competitiveness and profitability, which are: threat of new
entry, intensity of rivalry among existing firms, pressure from substitute products, bargaining power
of buyers, and bargaining power of suppliers. Richard Randall

Blue Ocean Strategy Essay
A REPORT ON THE
ANALYSIS OF BLUE OCEAN STRATEGY AND ITS IMPLICATIONS
CONDUCTED BY:
NAME: MBURU
ID: L0471ALAL0211
MODULE: STRATEGIC INFORMATION MANAGEMENT
LECTURER: DAVID ACQUAYE
COURSE: BA–BMS 4
DATE: 19TH APRIL, 2012
WORDS: 3,776
SCHOOL: LONDON SCHOOL OF COMMERCE
LONDON, UNITED KINGDOM
Table of Contents
Executive Summary3
Chapter One
Definition of Blue Ocean Strategy4
The Authors6
Chapter Two
Introduction7
Major Differences Between Blue Ocean and Red Ocean7
Conclusion7
Chapter Three
Introduction10
The Four Actions Framework10
The Four Actions Framework In Practice10
The ERRC Grid10
Chapter Four
Conclusion16
Recommendations17
Reference List18
EXECUTIVE SUMMARY
The author carried out this ... Show more content on Helpwriting.net ...

This is done by creating a leap in value both for the buyers as well as for the organization thereby
creating a new and uncontested market space. Companies left out in the red ocean usually follow a
conventional approach, running to beat competition by creating a defensible position in the current
market space order. Value innovation balances both value and innovation. Value that lacks
innovation will focus on value creation i.e. improving value insufficiently to let you stand out in the
market place. Innovation which lacks value will be, as Kim and Mauborgne put it (page 13),
technology–driven, market pioneering or futuristic rising above what the buyers will be ready to
accept and pay for.
THE AUTHORS The authors of the book 'Blue Ocean Strategy' are two friends who dedicated the
book to their friendship, loyalty and belief in one another. They are: W. Chan Kim and Renée
Mauborgne. They met twenty years before publishing the book, in a classroom – one as a professor,
the other as a student. And since that time they have been working together seeing themselves like
two wet rats in a drain. The book, blue ocean strategy, was a victory of their friendship and not an
idea, which, they found

Overview of the Blue Ocean Strategy
Blue Ocean Strategy
Executive Summary These days all major global organizations are focusing towards the latest
concept of Strategic Management, "The Blue Ocean Strategy". This concept, which seems new, is
actually hundreds of years old. It gives the idea of creating Blue Oceans by building a new market
space and making the competition irrelevant. This paper will discuss in detail the concept of Blue
Ocean Strategy, its evolution, principles and its practical application in the real world.
Table of Contents
Introduction.................................................................................04
Evolution of Blue Ocean Strategy.......................................................04
Blue Ocean Vs Red Ocean................................................................05
Six Principles of Blue Ocean Strategy...................................................06
Advantage of Blue Ocean Strategy.......................................................07
Blue Ocean Strategy A Dynamic Process.............................................08
Blue Ocean Creations......................................................................09
Blue Ocean Strategy Build Brands.......................................................10
Blue Oceans: Past, Present and Future...................................................11
Mini Case Study: Crocs Incorporation...................................................13
Introduction
Blue Ocean Strategy (BOS) is a new concept in strategic management, introduced by Professor W.
Chan Kim and Renee Mauborgne in 2004. After doing detailed research, Kim and Mouborgne found
out that most of the companies rely on the market segmentation and price competition for attracting
customers. This results in increasing costs and decreasing rewards creating a Red Ocean where all
competitors compete together. Therefore, in

Blue Ocean Strategy Criticism
Risk associated with being first mover(entry order). 1. Being overtaken by 2nd mover Facing market
risk – market not formed yet Customer uncertainty and extended time for adaptation Charles Stack
1st online book store lost its market share for Amazon.com invest highly in R&D and
marketing cost Follower strong product positioning, pricing and heavy promotion firm has to be
aware of fast, aggressive and imitating followers that will neutralize all the firm's efforts and
investments and decrease firm dominance cost of imitation is only about 65% of the cost of
innovation market development, competitive actions and technological development it is not easy to
shape industry conditions have to be taken into account Mauborgne ... Show more content on
Helpwriting.net ...
Penrose set the foundation of resource–based view (Rugman and Verbeke, 2002) and strongly
resembles Kim and Mauborgne's view and teachings. Even Porter (1996) noted ten year before the
Blue Ocean Strategy book that a firm can be not be successful by performing better than its
competitors, but has to partake in different activity than its competitor. Value innovator targets the
mass By focusing on the commonalities of the customers, the strategy seeks to target the mass, and
hereby boosting demand and sales. It argues that the strategy focuses on commonalities, rather than
differences between customers, which is how it was done traditionally. The underlying framework
After discussing each of the underlying assumptions of the Blue Ocean theory, it can be seen that the
Blue Ocean theory is based upon the idea that when a company is to create a blue ocean, it has to
make efforts in rethinking its boundaries in terms of industry, competition and capabilities. Besides
that, it is apparent that a blue ocean is created through the efforts of generating value innovation. Its
idea of value innovation originates from Porter's early view of business strategies. It contrast from
Porter in a way that it frames the thought that low costs strategy and differentiation strategy can be
joined together, rather than being mutually

Notes On Blue Ocean Strategy
W. CHAN KIM AND RENEE MAUBORGNE
BLUE OCEAN STRATEGY
HOW TO CREATE UNCONTESTED MARKET SPACE AND MAKE THE COMPETIOION
IRRELEVENT
BOOK SUMMARY
BACKGROUND
Authors W. Chan Kim and Renee Mauborgne are both professors of strategy at INSEAD Business
School, France, and are both Fellows of the World Economic Forum. They both have an established
presence in the world of academics and business, so they can be considered an authority on strategic
and business planning. First published in 2005, Blue Ocean Strategy introduced a new way of
creating market space. Kim and Mauborgne proposed that the market could be divided into two
categories: blue oceans and red oceans. In a red ocean, everything is known, the rules are laid out
and the boundaries clearly defined. In a blue ocean, the competition becomes irrelevant as
businesses forge into the untapped potential of the market creating their own space. This book
revolutionized how businesses thought about strategic and business planning.
OVERVIEW
This book proposes that the best way to overcome the competition, it to stop trying to compete with
them. When a business does this, they leave behind the red ocean filled with sharks, and enter into
blue oceans where they are free to grow without fear of being attacked. The authors surveyed over
100 companies and found that 86 percent were product extensions while the remaining 14 percent
delved into blue oceans. Even though only a small number decided to brave the unknown, they
generated 61

Blue Ocean Strategy Tools Analysis
Real–world Business Analysis:
Blue Ocean Strategy Tools Analysis Paper
MMBA–6570 Business Strategy for a Competitive Advantage
Dr. Schulz
Stephenie Wegmann
April 15, 2013
Introduction
The purpose of the blue ocean strategy is to focus on making the business itself better without
focusing on the competition. Kim and Mauborgne (2005) state that "blue ocean strategy challenges
companies to break out of the red ocean of bloody competition by creating uncontested market
space that makes the competition irrelevant" (p. x). There are several analytical tools that have been
created to challenge companies to become part of the blue ocean.
Reconstructing market boundaries to break from the competition is the first principle of the blue ...
Show more content on Helpwriting.net ...
Companies have to apply the six paths framework to their current business strategy. They must
systematically look across these concepts by considering alternative industries, strategic groups,
buyer groups, complementary and product service offerings, functional–emotional orientation of an
industry and time (Kim & Mauborgne, 2005). While taking this systematic approach,
companies can focus on the four actions framework to determine the aspects that can be eliminated,
reduced, raised or created. Companies can also integrate the strategy canvas and target
noncustomers by creating products that sets them apart from competitors and brings them to be
recognized as alternatives versus substitutes.
In order to build blue oceans, it is crucial for companies to get the strategic sequence right.
According to Kim & Mauborgne (2005), "companies need to build their blue ocean strategy in
the sequence of buyer utility, price, cost, and adoption" (p. 117). The starting point is to determine if
the company has an exceptional utility; second, the company needs to set a strategic price that the
customer can afford; third, the company must set a cost to still earn a profit; lastly, the company
must address adoption hurdles (Kim & Mauborgne, 2005). These four factors of the blue ocean
strategy can assist in attracting the mass of the target buyer.
Testing for exceptional utility can be done with

Analysis Of Kim And Mauborgne And Their Blue Ocean Strategy
Introduction:
In the early 21st century, the economic and social context became difficult; it is partly due to the
economic crisis but also by the low consumption. Many companies are struggling to find their place
or event to remain sustainable. Faced to this global economic uncertainty and increased taxes that
effect revenues, the customers; me and you, prefer to save rather than consume. Furthermore, the
household income allocated to consumption continues to decline. In addition to that, this situation
makes the consumers more volatile, looking just for the low cost or even a "good plan». Meanwhile,
companies are also struggling to maintain the growth. So then they try to drastically cut costs or
suggest different offers without an added value.
Based on this general assumption, the conventional models including porter's strategic management
seem to have had their day. However, other theories have been created to try to change and renew
the components of market. This is the case of Kim and Mauborgne and their blue ocean strategy
which represented a revolution in the competitive market. This strategic paradigm is presented as a
revolution! Its implementation will lead the company adapted to success by creating new demand
and avoiding competition. This strategy seems to be similar to a dream, do not worry! The dream is
overtaken by reality.
This report is a critical review of "Blue Ocean" strategy. It examines and explains both the blue
ocean and porter's model as a

Essay about Blue Ocean Strategy
Adel Erolsky
University of Phoenix
MKT/421
Ron Rosalik
August 25, 2014
In today's business world, competition is a big concern for nearly every corporation. The
competition on the market is getting stronger and more difficult to overcome, in many situations
corporations terminate their products, production, or their services, just because it is impossible to
continue; the cost is too high to focus on gathering development projects in marketing, production,
market research, and product innovation, to fight against the competitors.
The kind of competition market described previously is an example of a Red Ocean Strategy. The
market is oversaturated with companies ... Show more content on Helpwriting.net ...
An example of Blue Ocean Strategy business would be "Le Cirque du Soleil." At some point of our
life we did went to see the circus. The circus' performances were very popular for many centuries.
This is an old concept – a group of artists and acrobats who travel the world with a tent, and with a
diversity of wild animals to perform a spectacular show. The primary target was the children. Today,
this concept is obsolete, although still exist in Europe.
According The Wall Street Journal" ... Cirque du Soleil, the Canadian company that redefined the
dynamics of a declining circus industry in the 1980s. Under conventional strategy analysis, the
circus industry was a loser. Star performers had "supplier power" over the company. Alternative
forms of entertainment, from sporting events to home entertainment systems, were relatively
inexpensive and on the rise. Moreover, animal rights groups were putting increased pressure on
circuses for their treatment of animals." (Murray, 2014) A new era was created transforming the
concept of what is a circus today. As the Wall Street Journal described, "Cirque du Soleil eliminated
the animals and reduced the importance of individual stars. It created a new form of entertainment
that combined dance, music and athletic skill to appeal to an upscale adult audience that had
abandoned the traditional circus. (Murray, 2014)
This new revolutionary strategy took an obsolete business, which was at risk of

Review On Blue Ocean Strategy Essays

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