In the contemporary business environment with cutthroat competition, establishing an appropriate business strategy is of paramount importance in order to respond effectively to rapid change in business environment. Kodak, once one of the leading companies in film and camera industry, collapsed with the advent of digital photography era. Despite the fact that Kodak dominated the film and camera market in the world and invented the first digital image sensor for digital photography in the late 20th
In their 2004 article, “Blue Ocean Strategy”, W. Chan Kim and Reneé Mauborgne explain a new strategy they developed named “Blue Ocean”, meant as a metaphor from moving away from “red oceans” – traditional, current market competition – onto new, uncontested markets. In brief, a blue ocean strategy, as defined by Kim and Mauborgne, generates an environment where a company creates new products or services, sets the pace, and profits from the lack of traditional competition.(5) The authors are quick
Blue ocean strategy is a strategy that aims to make the competition irrelevant by finding ways to generate uncontested market space (Media Marketing, 2012). By implementing this strategy, a company is being forced to align their process related to production, costs and costs activities (Media Marketing, 2012). By utilizing the blue ocean strategy, Ambang Mata will achieve higher returns and also may continue to survive in the market. One of the strategy being suggested was setting up a research
paper is an attempt to explore the Blue Ocean Strategy which surfaced in the year 2004 and within a few months, it revolutionised thinking patterns and decision making processes of many firms around the world. The terms “red oceans” and “blue oceans” became the part of the business dictionary and many business related journals started using these terms. It links to the themes of “critical response” and “critical thinking” because the very creation of Blue Ocean Strategy is a challenge or disapproval of
Review 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 enhance
BLUE OCEAN STRATEGY 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 detailed
goal of this paper is to provide ‘Blue Ocean Strategies’ for five different products using the tools and techniques described in Kim and Mauborgne’s 2005 book “Blue Ocean Strategy.” Product #1: Corn Due to increasing health consciousness, mass produced genetically engineered corn is facing a lot of noncustomers including international export markets such as China and France (Bloomberg News, 2014, June 11, Deike, J., 2014, Mar, 17) and hence the blue ocean strategy for a corn farmer would be to: 1
and Mauborgne, 2005, 4). Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant by W. Chan Kim and Renee Mauborgne explains how to overcome competition by creating uncharted markets. The author, W. Chan Kim, is the professor of strategy and international, management at INSEAD, and the second author, Renée Mauborgne is the INSEAD Distinguished Fellow as well as a professor of strategy and management. The authors use the term “blue ocean” as a metaphor for undiscovered
conventional path towards a career. It means that students work in a project with a multidisciplinary team to solve real-life cases together with partner companies. I cognized three main things which are strongly connected with key points of Blue Ocean Strategy. First, create a value. Undertsanding of why our new product/service is valuable for client comparing to the old-fashioned model. Open new possibilities for your potential customers, surpass traditional limitations and introduce product which
AirAsia airlines: How they apply Blue Ocean Strategy From the article that I have read recently by Rizal Ahmad in Asian Journal of Management Cases, he described the development of Air Asia Malaysia from 2005 to 2008. Within only four years, AirAsia managed to expand its operations into another ten countries. This article also documents Air Asia's marketing strategy and its approach towards 'market development' and 'product development'. The Blue Ocean Strategy concept is used as a tool to examine
In the article “Blue Ocean Strategy”, the authors explore the idea of a blue and red ocean. These terms describe two certain types of competitive environments, specifically looking at the competitive business environment. On one hand, a competitive environment can be a red ocean, such that companies are ruthless players looking for ways to penetrate into different industries. The authors believe that red oceans seem to reflect the way the business environment looks like today, competitors viciously
Mauborgne, R. 2005) These two concepts include the Red oceans; representing the industries already in existence, namely the ‘’known market space’’, whereas the Blue oceans denote industries which may not be in existence and are not tainted by competition. (Kim, W. C., Mauborgne. R. 2005) The concept of the ‘’Blue Ocean Strategy’’ can be extremely beneficial for retail managers in terms of location, it can be used in order to aid an overall business strategy, namely: ‘’will the business create a new industry
Blue Ocean Strategy: How to Create Uncontested Market Space and make the Competition Irrelevant" by Chan Kim and Renee Mauborgne was released in 2005 and became an international bestseller. It takes into account a study of 150 strategic moves that span over 100 years and through thirty industries, and argues why tomorrow's leading companies will find their success comes from not battling direct competitors, but instead by creating uncontested market space known as "blue oceans." The book starts
BLUE OCEAN LEADERSHIP BASIC SUMMARY Blue ocean leadership is a concept derived from the blue ocean strategy formulated by W. Chan Kim and Renee Mauborgne, professors at INSEAD business school. Blue ocean strategy says that leaders in industries are created not by competing with each other (red ocean) but by creating “blue oceans” of uncontested market space with tremendous potential to generate value. Profs Kim and Mauborgne now apply the same revolutionary concept to one of the key assets of industry-
A market universe can be considered to be composed of two oceans: Red and Blue. Red oceans represent the industries in existence today i.e. the known market place. Blue oceans denote all the industries not in existence today—the unknown market space, untainted by competition. In the red oceans, industry boundaries are defined and accepted and the competitive rules of the game are known. Companies try to outperform one another to grab a greater share of the existing demand. As the space gets more
Apple Inc. implemented the blue ocean strategy; concurrent pursuit for uniqueness and low costs to open up a new market and demand (Kim, 2004). The company used the strategy to supply creative and innovative products that changed the field of art. However, Samsung joined the smartphone market by using the red ocean strategy; gaining a competitive advantage by venturing into an existing market, and improving on its weaknesses
Discuss the concept of blue ocean strategy, and explain how innovation in business-level strategy can change the competitive game in an industry, giving the innovator a sustained competitive advantage When the market space becomes tight, a company may need to create its own market space, using value innovation to make its products unique. The strategy is called Blue Ocean Strategy. Innovation for competitive game are: ◈ Increase: A company can achieve competitive advantage by increasing some elements
If not, rethink. After accomplishing this sequence you will have a commercially viable blue ocean idea. 7.1. The Buyers Utility The Buyer Utility Map helps to identify the levers to deliver exceptional utility to buyers. Each stage of buyers’ To be successful with target costing, the strategy profile must be divergent, but must also have focus. 7.3.1. The Profit Model of Blue Ocean Strategy 7.4. Adoption A so large change threatens the status quo, and for that reason it
stagnate economy, increased competition from other attractions and looming government regulatory changes the Aquarium must stay relevant, competitive and strategically sound. Our team at the VEKK group have designed and conducted a research project to discover what Vancouver residents over the age of 18 think about the Vancouver Aquarium. Our investigation answers the following questions: 1. The motivation or reason why residents visit the Vancouver Aquarium 2. The level of satisfaction Vancouver
Douglas McGregor, born in 1906, is considered to be “one of the most popular management writer of all time”( Economist, 2008, para. 3). His best known composition focused on a simple question: “What are your assumptions (implicit as well as explicit) about the most effective way to manage people?” which has resonated throughout management schools around the world. In his composition, The Human Side of Enterprise, McGregor revolutionized Theory X and Theory Y, which was greatly influenced by working