But on the other hand, the blue ocean can be considered an industry that does not exist today, known as an unknown market space. The Red Ocean is a collection of all the industries that exist today and is known as the market space. The corporate universe can be seen as a complex of two oceans, the first being the red ocean and the second being the blue ocean. Since then, Blue Ocean’s strategy has been to increase demand and differentiate itself from the competition by allocating existing demand and benchmarking against competitors. The Blue ocean strategy allows companies to walk out of the ocean of bloody competition by creating undisputed market space and accomplishing irrelevance. Hence, it helps the company to achieve decent profits and outperform its competitors. In other words, the strategy encourages companies to offer products of great value to consumers. This strategy responds to new demands by familiarizing unique products with advanced features that stand out from the crowd. Since the industry is in a state of non-existence, there is absolutely no peer comparison relevance. What exactly is a blue ocean strategy?Ī blue ocean strategy is all about designing and acquiring an undisputed market forum by creating new demand. The main premise of a blue ocean strategy is that companies should unleash new demands and make competition irrelevant, rather than rest on their laurels and focus on saturating the market. In other words, unlike the Red Ocean, which is a saturated market with differentiation or cost competition, companies can create a blue ocean or brand new market for themselves through value innovation, thereby creating value in the entire supply chain. The strategy, based on decades of extensive research on hundreds of companies across multiple industries, argues that companies can create new markets for themselves rather than compete with competitors. Blue Ocean Strategy is a concept given by INSEAD professors W.
0 Comments
Leave a Reply.AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |