The Blue Ocean Strategy seeks the simultaneous integration of differentiation and low cost in the strategic plan thus creating new profitable markets where competition is irrelevant. They state that managers are preoccupied with benchmarking the competition and capturing market share, which leads to the creation of Red Oceans, where companies focus on out-pacing competitors within existing market boundaries for incremental gains. These firms will be less concerned with defending market position than with creating new value by re-configuring the value chain, and that relentless value innovation is the surest way to thriving and surviving in today's dynamic and uncertain times.
Actually we can verify that it is the case in many areas. For instance, Google search is the number one search site. It is much more successful than Yahoo and MSN search.
The same goes for eBay as the number one auctions site, Paypal as the number one Internet based payments system, Skype as the number one Internet based phone application, Twitter as the number one micro-blogging site, and so on. More recently I learned about this book "Blue Ocean Strategy" that talks about very successful practices that many companies have followed.
Doing so they made their competitors practically irrelevant. It is a fact that the companies mentioned above are number one in their fields and so they are much more successful their competitors.
However that is not exactly a rule, but rather a consequence of a well thought and well executed business strategy that follows practices described in this book. As a matter of fact, the strategy is not specific just for Internet or technology companies.
It can be applied by companies in many other industries.
One example that is brought up frequently throughout the book is that Canadian company that conceived "Cirque du Soleil" to bring a new way of producing circus shows that attract masses and generate millions in revenue from their shows presented worldwide.
The book was published by Harvard Business School in and so far has been a best-seller in many countries. The authors of the book, W.
Chan Kim and Renee Mauborgne, have been distinguished professors in several reputed business schools and worked as board members of well known companies. However, they did not really invent the blue ocean strategy practices.
These practices exist ever since the man kind started organizing businesses activities. What the book authors did was to name the strategy as blue ocean and then they have written this book as a way to describe what is the strategy, how it can be executed and maintained to keep businesses successful for a long time.
But you may ask, where does this name "Blue Ocean Strategy" comes from? A blue ocean is a peaceful ocean where the businesses are represented by ships that can sail at top speed without being affected by competitors or adverse circumstances.
It is the opposite of an eventual red ocean on which the fights with the competitors lead to bloody losses, thus the reference to red, as it is the color of blood. The book itself is divided in three main parts: This book is being used as reference material in many schools that provide MBA Master in Business Administration courses.
However, you do not need to take a MBA course to understand and appreciate the book. The theory is presented throughout the book giving real world examples of well known companies that applied the blue ocean strategy practices.
This is awesome because it helps you to understand how come certain companies became so successful, while their competitors are made irrelevant. For instance, after reading this book, you may understand exactly why Google search became so successful.
Even with competitors like Microsoft that has a very large budget to compete on the search market, Google leadership tends aggravate for a long time. In practice, Google search competitors are made irrelevant because they do not seem to know what to do to steal market share from Google.
Google search is one good example of well executed blue ocean strategy. Talking about Microsoft, Windows marketing strategy can also be seen as a blue ocean strategy. Practically since the beginning Windows made almost irrelevant other operating systems for the desktop computers. The book mentions that a well executed blue ocean strategy may keep a company leading its market well ahead for 15, 20 or more years.
That seems to be true for Windows. The book also mentions that successful blue ocean strategies do not last forever. Despite the book recommends practices to keep blue oceans for a long time, often new blue oceans may defeat companies that applied blue ocean strategies in the past.
This may explain why Microsoft seems to be so concerned now with these Web based operating system initiatives. If a Web based operating system implemented by Google or any other competitor becomes the next successful blue ocean strategy, desktop based Windows operating systems may end up becoming much less relevant.
Another interesting detail mentioned in the book, is that some people may think that just using innovation may be enough to implement a successful blue ocean strategy.
Innovation is important but certainly not enough. That is one of the things that you learn from this book. The book explains what other factors are relevant to execute a successful blue ocean strategy.
Although this example was not taken from the book, I remember particularly one story about great innovation that failed due bad strategy execution.
In Bill Gates, the well known founder and current chairman of Microsoft, published a book named "The Road Ahead". It is a book about his vision of the future of personal computing.Jul 13, · High Performance Selling Introduction to Marketing International Marketing Advertisement-Management Managing a Sales Team Successfully The Boston Consulting Group (BCG) Matrix An Introduction to Blue Ocean Strategy Brand .
Blue Ocean Strategy Hoshin Kanri Lean Six Sigma Visual Thinking Behavioral Economics Design Thinking Lean Six Sigma is relevant to your industry or function. Further, it will broaden your knowledge as you learn how it is applied in other sectors and functions.
Introduction to Six Sigma Case Files. 2 of 8 Bonus Lecture. 3 of 8 Case File. The second stage of the empirical research comprises of a structured survey, to test the Blue‐Ocean‐Strategy, especially the Four‐Actions‐Framework and the so‐called Sequence of the Blue Ocean Strategy.
organisations have applied blue ocean leadership. As they were highly committed and closely guided by us and Gavin Fraser, our Blue Ocean Strategy Network expert to ensure the integrity of the approach adopted, results of these ex-ante experimentations have been positive and inspiring.
I’ll be ordering Blue Ocean Strategy and Blue Ocean Shift immediately. The most poignant part is at the end of the interview, when Renee (and you, Marie) gave all us scared beginner entrepreneurs the freedom to turn back, or exit the game if we need to, and know that it’s okay. Lesson Info.
The Blue Ocean Strategy. Diving in a blue ocean strategy um it's directly tied to paul arden's whatever you think think the opposite and I'm gonna give you some examples and then we're gonna work through an exercise both here in the room and online because it's kind of mind bending what you can do with it.