Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand . ... It is based on the view that market boundaries and industry structure are not a given and can be reconstructed by the actions and beliefs of industry players.
What is a blue ocean strategy give some examples?
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.
How do you use blue ocean strategy?
- Define the current reality. ...
- Identify a segment of customers who are only interested in or find value in a portion of the features of a product or service. ...
- Alter the product or service to be inferior on the aspects that are less valued by your new target audience.
What is an example of a blue ocean company?
Ford and Apple are two examples of leading companies that created their blue oceans by pursuing high product differentiation at a relatively low cost, which also raised the barriers for competition. They also were paradigmatic of burgeoning industries at the time that were later exemplified and emulated by others.
What is a blue ocean strategy and its advantage?
Blue Ocean Strategy cooperates with organizations to find uncontested markets and avoid matured and saturated markets . It assists to move from the impediments of competing within the existing industry and cost structure and to gradually migrate towards constructive value improvement.
How do you identify blue ocean strategy?
In a Blue Ocean Strategy, you essentially make the competition irrelevant by breaking out of the “red ocean” of bloody competition and creating new demand in the clear waters of uncontested market space — a “blue ocean.” You stop thinking about how to compete with others for the same customer in the same way, and ...
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 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.
What are two ways to create blue oceans?
There are two ways to create blue oceans. One is to launch completely new industries , as eBay did with online auctions. But it’s much more common for a blue ocean to be created from within a red ocean when a company expands the boundaries of an existing industry.
What is Blue Ocean Strategy and red ocean strategy?
Cutthroat competition turns the ocean bloody red . Hence, the term ‘red’ oceans. Blue oceans denote all the industries not in existence today – the unknown market space, unexplored and untainted by competition. Like the ‘blue’ ocean, it is vast, deep and powerful –in terms of opportunity and profitable growth.
What is the key implication of the Blue Ocean Strategy Framework?
The key premise of the Blue Ocean strategy is that companies must unlock new demand and make the competition irrelevant instead of going down the beaten track and focusing on saturated markets .
Why is it called blue ocean strategy?
A blue ocean is an analogy to describe the wider, deeper potential to be found in unexplored market space . A blue ocean is vast, deep, and powerful in terms of profitable growth.
What companies used a blue ocean strategy?
- Blue Ocean Strategy Examples:
- iTunes. With the launch of iTunes, Apple unlocked a blue ocean of new market space in digital music that it has now dominated for more than a decade. ...
- Bloomberg. ...
- Canon. ...
- The Ford Model T. ...
- Philips. ...
- Quicken. ...
- Ralph Lauren.
What is a blue ocean event?
An “ice-free” Arctic Ocean, sometimes referred to as a “Blue Ocean Event”, is often defined as “ having less than 1 million square kilometers of sea ice” , because it is very difficult to melt the thick ice around the Canadian Arctic Archipelago.
Does Blue Ocean strategy work?
In a study conducted by Mauborgne and Kim in the run-up to their book, however, they found that companies with a Blue Ocean Strategy were able to maintain their dominance in the new market for an average of 10 to 15 years .
What is a red ocean strategy?
Red ocean strategy is a plan of action to make a product survive (and make profits) in a competitive market . The strategy aims to beat the competition. Red ocean strategy examples show certain characteristics associated with red ocean theory. They are: Organizations compete in an already-existing marketplace.
What makes Blue Ocean strategy different from other strategies?
Under traditional competitive strategy differentiation is achieved by providing premium value at a higher cost to the company and at a higher price for customers. ... Blue ocean strategy, by contrast, is about breaking the value-cost trade-off to open up new market space.
Is Google using blue ocean strategy?
Google is a wonderful company revolutionizing information technology. The success of the networking company relies on Google’s adoption of Blue Ocean Strategy.
How did uber create a blue ocean?
Rather than competing in the confines of the existing industry or trying to steal customers from taxis, Uber developed uncontested market space that made taxis irrelevant. Uber created a blue ocean, they turned non-customers into customers. In blue oceans, demand is created rather than fought over.
How did Apple created a blue ocean?
Apple’s Blue Ocean Strategy: iTunes music store
The company realized that there was untapped demand in channelling the digital music (Apple 2015). The company wanted to maximize the opportunity by offering an extensive selection of music at an affordable price. It thus attracted the potential buyers.
How long is blue ocean event?
Global climate models have long been conservative in predicting the demise of Arctic ice. On average, they’ve tended to produce a blue ocean event no sooner than 2040 , and often not until late this century.
What is the methane bomb?
In recent years, climate scientists have warned thawing permafrost in Siberia may be a “methane time bomb” detonating slowly. ... In 2020, temperatures in the basin rose nearly 11 degrees Fahrenheit above normal, causing the limestone to release ancient methane deposits that had been trapped inside.
When was the Arctic last ice-free?
In July of 2020 , the area covered by sea ice in the Arctic Ocean reached a new low for the month. With record warming caused by human activity, the Northern Sea Route became ice-free earlier than previously recorded. At the end of July, Canada’s last intact ice-shelf collapsed.
