Focus on the big picture, not the numbers, The main principles of Blue Ocean Strategy are: (6) Additionally, it provides an ‘action framework’ for escaping this market space and building new or uncontested market space. The main tool of Blue Ocean Strategy is Strategy Canvas (Figure 1) which is a diagnostic tool that allows the firm to capture the current competitive forces in the known market space, the red ocean. In the blue oceans, there is no competition because the rules of the market are not defined yet. Although some blue oceans are created well beyond existing industry boundaries, most are created from within red oceans by expanding existing industry boundaries. Additionally, Blue oceans mean the opportunity to get high profit and growth rate.
Blue oceans are defined by untapped market space, demand creation. (1)īlue oceans express all the industries not in existence today and that market space is not discovered yet.
Products become commodities, and cutthroat competition turns the red ocean bloody. Since these markets are crowded, the profit and growth rates are lower. In these markets, companies try to defeat their rivals to take a larger share of existing demand. In such a market sphere, industry borders are defined and accepted, and the competing rules of the game are identified. Red oceans are the known market space which represents all the industries in existence today. In the market universe, there are two sorts of oceans: red oceans and blue oceans. Chan Kim and Renee Mauborgne at Harvard and INSEAD universities. In the research phase, it has been implemented in 300 companies over 20 years. It is a proven system for making competition irrelevant by creating a low-cost and differentiated strategy in parallel. In the context of the Blue Ocean strategy, it is recommended to look at market boundaries differently and present products & services for consumers from different segments by identifying a common trait.
0 kommentar(er)
