The Importance Of Blue Ocean Strategy

hurdles – tackles how to knock over organizational issues in executing a blue ocean strategy addressing organizational risk. The sixth principle–strategy execution – tackles how to motivate people to execute strategy to the best of their abilities.

Hence, as much as blue ocean strategy is about maximizing opportunities it is also about minimizing risk. That is why blue ocean strategy speaks the language of executives. Executives cannot afford to be riverboat gamblers.

(1.3) Is blue ocean strategy new?

Although the term blue ocean is new, their existence is not. They are a feature of business life, past and present. Look back one hundred years and ask yourself, How many of today’s industries were then unknown? The answer: Many industries

If history is any predictor of the future, the answer is many of them. Again, blue oceans have and always will exist. The reality is that industries ne industries never stand still. They continuously evolve. Operations improve, markets expand, and players come and go. Yet, as history teaches us we have a hugely underestimated capacity to create new industries and re-create existing ones. This strategy not only articulates the existence and importance of blue oceans. Equally, if not more importantly, it provides analytical frameworks and tools that allow companies to create and capture value in blue ocean strategic manner.

(1.4) Complimentary existence together of the red and blue oceans

Blue and red oceans have always complimentarily existed and always will do so. Practical wisdom, therefore, demands that companies understand the strategic logic of both types of oceans. At present, however, competing in red oceans dominates the field of strategy in theory and in practice. Part of the reason traces back

The result has been a fairly good understanding of how to compete skillfully in red waters, from analyzing the underlying economic structure of an existing industry, to choosing a strategic position of low cost or differentiation or focus, to benchmarking the

Competitors are often blocked from imitating because of brand image conflicts, or the blue ocean strategy just does not fit conventional strategic logic. For many years CNN, for example, was ridiculed by the industry as chicken noodle news by established players. The second barrier is organizational. Because imitation often requires companies to make substantial changes to their existing business practices, politics often kick in, delaying for years a company’s commitment to imitate a blue ocean strategy. The third level includes the economic forces of blue oceans. The high volume generated by a value innovation leads to rapid cost advantages, placing potential imitators at an ongoing cost