Blue ocean is a slang term for the uncontested market space for an unknown industry or innovation coined by professors w chan kim and renee mauborgne in their book blue ocean strategy: how to . The blue ocean strategy approach to strategy is based on six principles that cater for the major risks of a new market creation project: search risk, planning risk, scale risk, business model risk, organizational risk and management risk. Blue ocean strategy was developed by w chan kim and renée mauborgne  in their seminal business strategy book, the authors divide the marketplace into “blue oceans” and “red oceans” red oceans are all the industries in existence today that serve the known market space. Start studying blue ocean strategy learn vocabulary, terms, and more with flashcards, games, and other study tools.
∗focus strategy (ex: linkedin) ∗ traditional competitive strategy vs blue ocean strategy ∗competitive advantage - porter’s five forces ∗blue ocean strategy is a: ∗value innovation strategy – competes in an uncontested market space ∗“combination strategy ”: pursue differentiation while controlling costs. What blue ocean strategy set out to do was to de-risk the process of creating new markets, what we call “blue oceans,” so executives can responsibly engage in these actions in an opportunity-maximizing, risk-minimizing way. A blue ocean exists when there is potential for higher profits, as there is now competition or irrelevant competition the strategy aims to capture new demand, and to make competition irrelevant by introducing a product with superior features. The premise of blue ocean strategy is, as stated on page 4, red oceans represent all the industries in existence today this is the known market space blue oceans denote all the industries not in existence today.
Blue ocean strategy is the marketing theory that the business universe consists of two kinds of markets: red oceans and blue oceans the concept was pioneered in a . Download the blue ocean strategy summary pdf click the link above to read the key concepts and everything you want to know about the blue ocean strategy in less than 5 minutes in this easy to read summary. Remember, the whole idea of blue ocean strategy is to have high value at low cost if you are doing that, how can anyone compete with you all the would-be competitors fall by the wayside. The blue ocean strategy represents the simultaneous pursuit of high product differentiation and low cost, thereby making competition irrelevant our study shows that blue ocean strategy is particularly needed when supply exceeds demand in a market, kim explained in an article on forbes .
Blue ocean strategy generally refers to the creation by a company of a new, uncontested market space that makes competitors irrelevant and that creates new consumer value often while decreasing costs. 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 about creating and capturing uncontested market space, thereby making the competition irrelevant. Blue ocean shift shows that it doesn’t have to be this way there is a process for systematically generating market-creating innovations there are well-established principles that can lead to sustained success at the same time, the book avoids the trap of suggesting that blue ocean strategy is simply another process. 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 wchan kim and renee mauborgne in their book titled “ blue ocean strategy : how to create uncontested market space and the make competition irrelevant” (2005). Blue ocean strategy, by contrast, is about doing business where there is no competitor it is about creating new land, not dividing up existing land focusing on the red ocean therefore means accepting the key constraining factors of war—limited terrain and the need to beat an enemy to succeed.
Under conventional strategy analysis, the circus industry was a loser star performers had “supplier power” over the company alternative forms of entertainment, from sporting events to home entertainment systems, were relatively inexpensive and on the rise. What is blue ocean strategy we’re so glad you’re interested blue ocean strategy is a new way of thinking, a new strategic mind-set, a bold new path to winning the future. Amazon is another good example of a blue ocean strategy its founder, jeff bezos , set out to create the world’s largest online bookstore — and succeeded part of the success was the convenient and well thought-out online customer experience. Blue ocean shift is the essential follow up to blue ocean strategy drawing on more than a decade of new work, kim and mauborgne show you how to move beyond competing, inspire your people's confidence, and seize new growth, guiding you step-by-step through how to take your organization from a red ocean crowded with competition to a blue ocean .