According to Kim and Mauborgne, their research indicates that "the strategic move, and not the company or the industry, is the right unit of analysis for explaining the creation of blue oceans and sustained high performance.
There is ample opportunity for growth that is both profitable and rapid. Apple made iTunes a win-win-win for the music producers, music listeners and Apple by creating a new stream of revenue from a new market while providing more convenient access to music. Their emphasis is on the quality of experience, not on the benefits of a new technology.
As stores continue to expand and American shopping habits change, retailers are going bankrupt at record-high rates. The aim of value innovation, as articulated in the article, is not to compete, but to make the competition irrelevant by changing the playing field of strategy.
Process gaps between departments should be bridged as soon as possible. Reinventing the Wheel — Many of the tools in the repertoire of the blue ocean strategy encourage a company to benchmark against the dominant players in an industry.
As the market space gets crowded, prospects for profits and growth are reduced. In blue oceans, demand is created rather than fought over.
Red Oceans Explained The authors describe red oceans as the existing industries in a known market space. This is where the smartphone example illustrates a design trade-off decision. This is achieved via the simultaneous pursuit of differentiation and low-cost.
Blending of opera and ballet with circus format while eliminating star performer and animals; Netjets: This is the same idea expressed in the form of an analogy.
This is a small hand held device that is pointed to the TV and detects movement in 3D. Red oceans become crowded, reducing the potential for profits and growth and turning products into commodities. Blending of opera and ballet with circus format while eliminating star performer and animals; Netjets: If you think about the idea of reduction in light of disruptive innovation you start to see an interesting corollary.
This exercise forces companies to examine every factor of competition, guiding leaders to discover the assumptions they unconsciously make while competing.
These implementation principles are essential for leaders to overcome the four key organizational hurdles that can prevent even the best strategies from being executed. Reach Beyond Existing Demand — A normal business practice is to keep a focus on current customers and a consequent focus on greater market segmentation.
Jul 25, Robert rated it it was amazing Blue Ocean Strategy: To seize new profit and growth opportunities they also need to create blue oceans. It was easy to use, providing users with the ability to buy individual songs at a reasonable price.
To achieve a blue ocean, this is where the company needs to keep its focus. This was quite the engineering feat because at the time most smartphones were hovering around mm.
Raise An Attribute Continuing the smartphone example, back inMotorola wanted to capitalize on the storied Razr brand of old by creating the worlds thinnest smartphone.
In terms of differentiation, Starbucks offered a variety of products, such as smoothies, teas and coffees that no other establishment was offering. The console redesign and the simplification of the entire gaming process allowed the company to bring on board an entirely new segment of casual gamers of all ages who enjoyed the social experience of gaming with their families.
A strategic move is the set of managerial actions and decisions involved in making a major market-creating business offering. This metaphor can be powerful enough to stimulate people to action.
We first introduce a set of analytical tools and frameworks that show you how to systematically act on this challenge, and, second, we elaborate the principles that define and separate blue ocean strategy from competition-based strategic thought.
The four key hurdles comprise the cognitive, resource, motivational and political hurdles that prevent people involved in strategy execution from understanding the need to break from status quo, finding the resources to implement the new strategic shift, keeping your people committed to implementing the new strategy, and from overcoming the powerful vested interests that may block the change.
Companies face cutthroat competition within defined and accepted industry boundaries. However, the concepts behind the Blue Ocean Strategy such as the competing factors, the consumer cycle, non-customers, etc. In blue oceans, competition is irrelevant because the rules of the game are waiting to be set.
At the time, the automobile industry was still in its infancy, but there were around automakers producing custom-made cars that were expensive and unreliable. The competition is often so intense that some firms cannot sustain themselves.
The strategic move must raise and create value for the market, while simultaneously reducing or eliminating features or services that are less valued by the current or future market. The idea is to keep the customer experience in mind as the true process.
For most smartphones the objective is to maximize battery life. Instead of viciously competing with other companies, organizations should find a way to work in a marketplace that is free of competitors. The Blue Ocean Strategy can be extremely rewarding, but can also be the most work intensive.
The Blue Ocean Strategy works to create an untapped marketplace outside of the traditional market boundaries. Rather than finding ways to compete with com. The reason is that blue ocean strategy creates considerable economic and cognitive barriers to imitation.
For a start, adopting a blue ocean creator’s business model is easier to imagine than to do. 2) understanding the blue ocean strategy, 3) how to apply the blue ocean strategy to your business, and 4) examples. WHAT IS THE BLUE OCEAN STRATEGY The term blue ocean was coined by two professors olivierlile.com Kim and Renee Mauborgne in their book titled “ Blue Ocean Strategy: How to Create Uncontested Market Space and the Make Competition.
Blue Ocean strategy in practice "Just think of its initial blue ocean shift in book retailing that separated it from the pack with its offering of the largest selection of books in the world.
BLUE OCEAN SHIFT is the definitive guide to shift you, your team, and your organization to new heights of confidence, market creation, and growth.
BLUE OCEAN.Blue ocen strategy