Understanding blue ocean strategy the authors use the terms blue oceans and red oceans to describe the entire market universe red oceans explained. Blue ocean strategy challenges companies to break out of the red ocean of bloody competition by creating uncontested market space that makes the competition irrelevant. Red ocean vs blue ocean demand creation, and the opportunity for highly profitable growth creating blue oceans.
Blue ocean strategy & blue ocean shift is about creating new market space and making the competition irrelevant it is a roadmap to move you, your team, and your organization to new heights of confidence, market creation and growth. Using a value creation compass to discover ''blue oceans'' norman t sheehan and ganesh vaidyanathan i n their landmark 2005 book blue ocean strategy and the research articles that. The blue ocean, on the other hand, is calm, smooth, with lots of food and little or no competition this is where everyone would like to be and it is possible for you to have a blue ocean consider some of the well known blue oceans created by the new york police department, southwest airlines, cirque du soleil , casella wine [ yellowtail.
Their book, blue ocean strategy: remaining in the red waters is to make a blue ocean shift and create your own blue ocean imitation is not the path to success, especially in the. Blue ocean strategy able blue ocean from within the red ocean of data on blue ocean creation to see what pat-terns could be discerned some of our data are. Figure 2 shows the difference in thinking between head-to-head competition (red ocean strategy) and blue ocean creation figure 2: head-to-head competition vs blue ocean creation quotes. Copy of red and blue ocean executing blue ocean creation formulation principles reconstruct market boundaries focus on big picture blue ocean strategy ppt. Blue ocean strategy red ocean strategy value innovation is a new way of thinking about and executing strategy that results in the creation of a blue ocean the.
After reading blue ocean strategy, and now blue ocean shift, i believe that i have the knowledge to pursue the creation of my own blue ocean, be it in the business world or elsewhere read more 2 people found this helpful. When red ocean becomes too crowded, the need of creating a blue ocean strategy will increase blue ocean is a dynamic process that helps companies to create, and capture their own business moreover, blue ocean supports companies to generate new blue ocean when new competitors come into their blue ocean. The following table is useful in highlighting the different focus areas between a red ocean and blue ocean strategy: the successful creation of a blue ocean can.
Unlike disruption, however, blue ocean strategy is a broader concept that goes beyond creative destruction to embrace nondestructive creation take nintendo's wii, for example, that created a blue. Blue ocean strategy definition in any industry, no matter how competitive it is, a company can create a blue ocean of uncontested market space blue ocean strategy. Blue ocean strategy is a marketing theory from a book just as blue ocean strategy claims that a red ocean strategy does the creation of innovative value to.
The blue ocean strategy is highly related to process innovation the idea of this strategy is to build new businesses where none existed before so-called blue ocean industries are more profitable than traditional business fields with head-to-head competitors in the blue ocean strategy, you must. In their classic book, blue ocean strategy, w chan kim & renée mauborgne coined the terms 'red ocean' and 'blue ocean' to describe the market universe. It is not hard to see why blue ocean strategy has been so popular the title is aspirational why should companies continue to fight in tough competitive markets —waters that are red with blood— when they can find new waters that are free of competition—the so called blue oceanof.