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.
Why is it called blue ocean strategy
A blue ocean is considered (from a marketing standpoint) a yet unexploited or uncontested market space.
The term was coined by Chan kim and Renee mauborgne in the book Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant.
What is red and blue ocean strategy
In a red ocean strategy, an organization has to choose between creating more value for customers and a lower price.
In contrast, those who pursue a blue ocean strategy attempt to achieve both: differentiation and a low cost, opening up a new market space.
For example, Airbnb didn’t buy homes or hotels.
What are the elements of blue ocean strategy
To build humanness into the blue ocean shift process and help people develop the confidence to act, Chan Kim and Renée Mauborgne have identified three elements that address different aspects of our humanness: atomization, first-hand discovery, and the exercise of fair process.
What is the most important feature of the Blue Ocean strategy
The most important characteristics of blue ocean strategy is a new way of solving users’ pains, which means creating the solution no one expected to exist, but that everyone needed.
This is called value innovation. However, blue ocean solutions are not always successful.
What confuses me in blue ocean strategy
A mistake that blue ocean strategy identifies is that companies confuse niches with new markets.
Identifying a niche and selling to it might be profitable in the short term, but long-term value will come from bringing new customers to play in a blue ocean.
What is the second principle of Blue Ocean Strategy
2. Focus on the big picture, not the numbers. Illustrates how to design a company’s strategic planning process to go beyond incremental improvements to create value innovations.
Why Blue Ocean Strategy is important
It aims to make the competition irrelevant by reconstructing industry boundaries. Whereas conventional strategic approaches drive companies to define their industry similarly and focus on being the best within it, blue ocean strategy prompts them to break out of the accepted boundaries that define how they compete.
Which 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.
How many principles are there in Blue Ocean Strategy
Principles of Blue Ocean Strategy are the six main principles that guide companies through the formulation and execution of their Blue Ocean Strategy in a systematic risk minimizing and opportunity maximizing manner.
What is the difference between Blue Ocean Strategy and red ocean strategy
In short, Red ocean strategy refers to competing for the existing marketplace, where the blue ocean strategy denotes making a new uncontested marketplace.
What are the six principles of blue ocean strategy
The six paths framework in formulating blue ocean strategy are (1) Look across alternative industries, (2) Look across strategic groups within industry, (3)Look across buyer groups, (4) Look across complementary product and service offerings, (5)Look across the functional-emotional orientation of an industry and (5)
When was blue ocean strategy created
The Blue Ocean Strategy was introduced in 2005 as a new way of approaching competition and gaining market share.
Companies could be separated into red oceans and blue oceans. A red ocean is where a company is competing directly with another company over the same factors and there is cutthroat competition.
What are the three pillars of a successful blue ocean strategy
For a company to successfully shift from red to blue oceans, Chan Kim and Renée Mauborgne have identified three key components that are needed: adopting a blue ocean perspective; having tools and methodology for market creation; and having a humanistic process.
What is the difference between red ocean and blue ocean strategy
In a red ocean strategy, an organization has to choose between creating more value for customers and a lower price.
In contrast, those who pursue a blue ocean strategy attempt to achieve both: differentiation and a low cost, opening up a new market space.
What is red ocean strategy with example
In a red ocean strategy, competition is typically fierce, and existing businesses compete to succeed in their respective industries.
Vehicle firms are an example of a red ocean company. All companies are fighting to solve the same problem or meet the same need as the consumers.
Is Blue Ocean Strategy still viable
Speaking of all type of set ups, Blue Ocean Strategy is still successful because it is scalable.
Any type of organization either it profitable or non profit can use the tools, methodology and framework.
Who invented blue ocean strategy
Professors Chan Kim and Renée Mauborgne introduced the concepts of red and blue oceans in their international best-seller Blue Ocean Strategy.
First published in 2005, it was updated and expanded with fresh content in 2015.
It has sold over 4 MILLION copies and is being translated in a record-breaking 47 LANGUAGES.
What is strategy canvas blue ocean
Chan Kim and Renée Mauborgne’s Strategy Canvas is a central diagnostic tool and an action framework for building a compelling blue ocean strategy.
It graphically captures, in one simple picture, the current strategic landscape and the future prospects for an organization.
Why do many firms fail to successfully implement a blue ocean strategy
Why do many firms fail to successfully implement a blue ocean strategy? Because they end up being “stuck in the middle,” unable to increase value and lower costs at the same time.
What are the benefits of blue ocean strategy?
- The strategy helps companies find uncontested markets while avoiding matured, saturated markets
- It helps companies overcome the impediment of constant competition and break free from traditional business models to expand their demand and profitability
Which companies use blue ocean strategy?
- Blue Ocean Strategy Examples:
- iTunes
- Bloomberg
- Canon
- The Ford Model T
- Philips
- Quicken
- Ralph Lauren
What makes Blue Ocean Strategy imperative in today’s business climate
Blue Ocean Strategy is critical in today’s business climate because prospects in most established market spacesred oceansare shrinking steadily.
Technological advances have substantially improved industrial productivity, permitting suppliers to produce a plethora of products and services.
What is are the main weaknesses of the Blue Ocean strategy
Disadvantages of Blue Ocean Strategy There is a possibility that the customer might not understand what the business is trying to sell and how beneficial the product might be.
The technology and the customer preferences might not be developed up to the extent where the business can create a profit.
What is Purple ocean strategy
The Purple Ocean strategy believes that in today’s business world organizations require both innovative ideas as well as a series of strategies to compete with rivalry and remain functional in the long term.
What is yellow ocean strategy
The purpose of the Yellow Ocean is to create and upgrade on awareness and readiness.
Awareness is a part of readiness. It is a physical reflex of the mind.
Awareness is a mindfulness state. Awareness means you are aware of the conscious event, what is in front and what is by your sides.
What is red ocean strategy
In a red ocean strategy, your brand’s primary goal should be to outperform the competition to maximize the value and financial benefit by beating the competition and attracting customers to your brand.
Providing much value to your customers is one of the most powerful strategies to win over in such a market.
How Amazon uses blue ocean strategy
Amazon products prove that creating blue oceans builds brands. So powerful is blue strategy, that, in fact, in can create brand equity that lasts for decades.
Traditionally, companies tend to focus on competition in order to expand their market share in the industry and increase profits.
What are the 4 steps in the blue ocean strategy process?
- Step 1: See your leadership reality
- Step 2: Develop alternative Leadership Profiles
- Step 3: Select to-be Leadership Profiles
- Step 4: Institutionalize new leadership practices
Is zoom Blue Ocean Strategy
Zoom’s story is a vivid example of the red ocean strategy.
How do you make a blue ocean strategy canvas?
- Step 1: Create A Strategy Canvas
- Step 2: Raise An Attribute
- Step 3: Reduce An Attribute
- Step 4: Eliminate An Attribute
- Step 5: Create An Attribute
Sources
https://www.freshconsulting.com/insights/blog/the-4-types-of-innovation/
https://www.blueoceanstrategy.com/what-is-blue-ocean-strategy/
https://tweakyourbiz.com/marketing/create-a-competitive-space-without-competitors-with-the-blue-ocean-strategy
https://www.slideshare.net/rajeshdgr8/blue-ocean-strategy-galalxy-note
