The Principles Of Blue Ocean Strategy - 1207 Words

One of the principles of blue ocean strategy is reconstruct market boundaries to separate competition and create blue oceans. To achieve this there are six different paths. As the Blue Ocean perspective rests heavily on identifying new and innovative operations, it is imperative that a map is generated to outline what questions to ask, and which trajectories to consider in pursuing it. Six paths were identified: 1. Look across alternative industries; a company not only competes with other companies with its industry it is also competing with those belonging to other industries that generates alternative products or services. The alternatives include products or services whose functions and forms are different but accomplish the same purpose. Every time that a buyer makes a purchase decision, considers alternatives usually unconsciously. For some reason, the sellers often abandoned this intuitive thinking, they rarely think consciously in the way customers choose among the alternative s that are offered by different industries. 10 2. Look across strategic groups within an industry; the strategic groups are generally classified according to a strict order based on two dimensions: price and performance. 3. Look across the chain of buyers (vertically); people who pay for the product or service may be different users, and in some cases, there are opinion leaders that influence decision. The different companies within an industry often consider different market segments, forShow MoreRelatedBlue Ocean Strategy By Chan Kim And Renee Mauborgne1694 Words   |  7 Pages Blue Ocean Strategy is a book written and published by Chan Kim and Renee Mauborgne in 2005. More than a decade of research was performed by the authors, and this research is analyzed extensively in the book. The authors were looking for successful companies that broke through the accepted norms of their industries to find greater success. Many of the companies they researched are still leading their industries today. These companies created what the authors define as a blue ocean- that is, â€Å"uncontestedRead MoreBlue Ocean Strategy By W. Chan Kim And Renee Mauborgne1212 Words   |  5 Pages(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 Renà ©e Mauborgne. After reading this book, the author wants to tell us that companies can succeed through creating â€Å"blue oceans† of uncontested market place. They don’t want to battle all the competitors. They maintain these strategic moves in orderRead MoreEssay on Blue Ocean Strategy- A Marketing Book1053 Words   |  5 PagesBLUE OCEAN STRATEGY â€Æ' 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 detailedRead MoreBlue Ocean And The Red Ocean Essay1674 Words   |  7 Pagesin the red ocean are now beginning to understand the importance of being in the blue ocean. Instead of fighting dominance in the red ocean where profits and market growth starts to dwindle, blue ocean represents the untapped market space where there are opportunities for growth making the competition irrelevant. The authors, Kim and Mauborgne, relying on their study were over 150 companies across 30 industries were analyzed, concluded that currently, two markets exist: the â€Å"red ocean† and the â€Å"blueRead MoreEssay on strategy marketing1247 Words   |  5 Pagesï » ¿Team : Hetong Xu; Jin Liu; Jieqi Jin. Blue Ocean Strategy 1. What is a blue ocean strategy? What is a red ocean strategy? Explain these from the perspective of company, competition, costs, and markets. Blue ocean strategy, as a business method, is about company creating a new market or industry where there is no competitor. Companies play not by traditional rules, never use the competition as a benchmark. They could ether create greater value for customers at a higher cost or create reasonableRead MoreHket Case-Strategy1489 Words   |  6 Pages2. Key characteristics of a Blue Ocean Strategy followed by Hong Kong Economic Times group: Hong Kong Economic Times (HKET) was founded in 1988. The group has grown from a daily financial newspaper to a diversified media group. HKET growth strategy has been to differentiate each new product to ensure a sustainable diversified business portfolio. During its course of growth and success, their growth strategy has followed certain characteristics of Blue Ocean Strategy. Keeping in pace with technologyRead MoreAnalysis Of Blue Ocean Strategy By W. Chan Kim And Renee Mauborgne1231 Words   |  5 Pagesgood unit to measure success or failure; it’s the strategies the companies take, which decide the success or failure of the company. And the â€Å"Blue Ocean† Strategy, the term introduced in the book â€Å"Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant†, by W. Chan Kim and Renà ©e 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 competingRead MoreBlue Ocean Strategy Paper970 Words   |  4 Pagesï » ¿ 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 competeRead MoreReview on Blue Ocean Strategy Essays1597 Words   |  7 PagesReview 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 enhanceRead MoreLego Group And Their Entrance Into The Board Game Industry1527 Words   |  7 Pagessegments. A value chain can be utilized to adjust the scope of operations. d) Value chain can also highlight areas where costs could be lowered via an inexpensive alternative and therefore widening the wedge. 29. The three tests of a good corporate strategy are as follows: a) The attractiveness test – an attractive firm/niche will have products with minimum alternatives or substitutes. b) The cost-of-entry test – cost-of-entry into a segment must be low and therefore, loss on return on investment will