Definition: 'Blue Ocean Strategy is referred to a market for a product where there is no competition or very less competition. This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure.
What is Blue Ocean Strategy and example?
The first example of blue ocean strategy comes from computer games giant, Nintendo, in the form of the Nintendo Wii. The Nintendo Wii launched in 2006 and at its heart is the concept of value innovation. This is a key principle of blue ocean strategy which sees low cost and differentiation being pursued simultaneously.
What is a red ocean market?
Red oceans are all the industries in existence today – the known market space, where industry boundaries are defined and companies try to outperform their rivals to grab a greater share of the existing market. Cutthroat competition turns the ocean bloody red. Hence, the term 'red' oceans.
Why is it important for your business to consider a blue ocean strategy?
Chan Kim and Renee Mauborgne, a Blue Ocean strategy allows brands to develop and thrive within an uncontested market space, while simultaneously making competition irrelevant. ... Delving into the blue ocean takes you from 'market competing' to 'market creating,' which allows you to exploit unripe growth.Jan 18, 2018
What are the elements of blue ocean strategy?
To build humanness into the blue ocean shift process and help people develop the confidence to act, Chan Kim and Renee Mauborgne have identified three elements that address different aspects of our humanness: atomization, firsthand discovery, and the exercise of fair process.
What is the importance of six paths framework?
The Six Paths Framework developed by W. Chan Kim and Renée Mauborgne allows managers to address the search risk many companies struggle with. It enables them to successfully identify out of the haystack of possibilities that exist, commercially compelling blue oceans by reconstructing market boundaries.
What is a blue ocean strategy examples?
Canon's strategic move, which created the personal desktop copier industry, is a classic example of blue ocean strategy. ... Defying the industry logic, the Japanese company Canon created a blue ocean of new market space by shifting the target customer of the copier industry from corporate purchasers to users.Jun 13, 2017
What is an example of a blue ocean company?
Ford and Apple are two examples of leading companies that created their blue oceans by pursuing high product differentiation at a relatively low cost, which also raised the barriers for competition. They also were paradigmatic of burgeoning industries at the time that were later exemplified and emulated by others.
Is Netflix a blue ocean company?
Netflix. The first company that used the blue ocean strategy is Netflix, a popular subscription-based streaming service. But at the beginning of its existence, in 1997, it was one more company competing in the industry of DVDs rental and sales.
What companies are Blue Ocean?
- Blue Ocean Strategy Examples:
- iTunes. With the launch of iTunes, Apple unlocked a blue ocean of new market space in digital music that it has now dominated for more than a decade. ...
- Bloomberg. ...
- Canon. ...
- The Ford Model T. ...
- Philips. ...
- Quicken. ...
- Ralph Lauren.
Who is the owner of Blue Ocean?
Grant McDougall is BlueOcean's CEO. He owns the vision behind BlueOcean and has played the BlueOcean CEO role from Day 1.