Implementing Blue Ocean Strategy for Business Success
Flynn Gordon, an experienced professional in sales and marketing, seeks to start a successful business amidst tough competition in the crowded electronics and consumer goods market. His friend Mark advises him to adopt the Blue Ocean Strategy, creating a unique and uncontested market space. By implementing this strategy, Flynn can differentiate his business and ensure its success by focusing on creating new demand and making competition irrelevant.
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Blue Ocean Strategy Blue Ocean Strategy
Introduction Flynn Gordon wants to start a business of his own. He has several years of experience in the Sales and Marketing field of electronics and consumer goods.
Introduction Flynn is not sure what kind of business he should start. He knows that if he tries to venture into the field of electronics and consumer goods, his business would face a lot of tough competition from the existing players in the field.
Introduction The market space of electronics and consumer goods is so crowded that in order for his business to succeed, Flynn would have to beat the existing competition and also exploit the existing demand.
Introduction Flynn is in a fix about what to do. He has several questions going on in his mind, such as: What business idea/strategy should he use to ensure success? How can he make the competition irrelevant to his business success? How can he create and capture new demand?
Introduction Flynn s ex-boss and a long time friend, Mark Yardley comes to Flynn s rescue. Mark tells Flynn that in order to start a successful business venture, it is crucial that Flynn s business should create a unique and uncontested market space just for itself.
Introduction In such a market space which is free from competition, Flynn can be sure that his business can easily and to a greater extent surely succeed. Mark tells Flynn to carefully study and implement the Blue Ocean Strategy for his business.
Introduction Mark tells Flynn that in order to implement the Blue Ocean Strategy he would have to come up with a business idea that will create a new uncontested market space for his business.
Introduction The Blue Ocean Strategy would help Flynn s business to: Create a market space which is uncontested and free from any competition Help make the competition irrelevant or have no effect on his business success Help target non-customers Create and gain new demand
Introduction Hence, you can understand that in order to succeed in any business, an organization and its management should always try to adopt a strategy such as the Blue Ocean Strategy to rid itself of the tough competition and create a new free market space for itself.
Introduction Hence, you can understand that in order to succeed in any business, an organization and its management should always try to adopt a strategy such as the Blue Ocean Strategy to rid itself of the tough competition and create a new free market space for itself.
Objectives Explain Who developed the Blue Ocean Strategy Explain Who developed the Blue Ocean Strategy Explain What is a Business Universe Explain What is a Business Universe Differentiate between Blue Ocean and Red Ocean Differentiate between Blue Ocean and Red Ocean Describe the Importance of Blue Ocean Markets Describe the Importance of Blue Ocean Markets Explain Key Terms Related to Blue Ocean Strategy Explain Key Terms Related to Blue Ocean Strategy Describe Ways to Create Blue Oceans Describe Ways to Create Blue Oceans Explain Steps to Create a Blue Ocean Strategy Explain Steps to Create a Blue Ocean Strategy List the Blue Ocean Strategy Tools List the Blue Ocean Strategy Tools Explain What is Meant by Value Innovation Explain What is Meant by Value Innovation Explain What is Tipping Point Leadership Explain What is Tipping Point Leadership Explain What is the ERRC Grid Explain What is the ERRC Grid Explain the Use of the Buyer Utility Map Explain the Use of the Buyer Utility Map Explain Steps for Strategy Reorientation & Execution Explain Steps for Strategy Reorientation & Execution Describe How to Choose Right Strategic Approach Describe How to Choose Right Strategic Approach List the Core Values to Drive Innovation List the Core Values to Drive Innovation
Who developed the concept of Blue Ocean Strategy? The concept of Blue Ocean Strategy was developed by W. Chan Kim and Ren e Mauborgne. They first presented the concept of Blue Ocean Strategy in their bestselling book, Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant.
Business Universe There are two types of distinct space into which the business universe can be divided: Red Oceans Blue Oceans Let us look at each in detail.
Red Oceans Red Oceans Red Oceans: o Red Oceans denote all the organizations and industries that are already in existence today. o Therefore, the Red Oceans represent the known market space .
Blue Ocean Strategy versus Red Ocean Strategy Let us know look at some of the differences between the blue ocean strategy versus the red ocean strategy. It involves It creates a market space which is uncontested and free from any competition competing in an existing market space It helps make the competition irrelevant or have no effect on his business success It involves beating the competition
Importance of Blue Ocean Markets Blue Oceans are a must and an almost sure shot way to success because when companies have to compete in a red ocean market space, the competition is cut throat and fierce. Due to such a crowded space, the companies have to beat the others by reducing their prices which leads to reduction in profits and hence a reduction in growth.
Reconstructionist Strategy The following are some of the key terms that you should understand to gain an understanding of Blue Ocean Strategy : Reconstructionist Strategy is similar to a Blue Ocean Strategy . 1 Blue Oceans 2 Red Oceans This strategy involves increasing demand and profits by having an unconventional mindset of creating a new market space which is free from any competition. Structuralist Strategy 3 Reconstructionist Strategy 4 4 Reconstructionist Strategy 5 Value Innovation Let us look at each in detail.
Steps to Create a Blue Ocean Strategy The following are the four steps that you need to follow to create a Blue Ocean Strategy: Step 1: Create Uncontested Market Space Step 2: Focus on the Big Picture Step 3: Reach Beyond Existing Demand Step 4: Focus on Getting the Strategic Sequence Right Let us look at each in detail.
Value Innovation Value Innovation Value Innovation is an important tool of Blue Ocean Strategy that can be used to create value in the eyes of your customer for the benefit of your business. The primary premise on which this tool works is that you can achieve cost savings by either completely removing or reducing the factors on which the industry competes on .
Cognitive Hurdle The following are the four steps to overcome all the four hurdles leading to rapid strategy reorientation and execution: Cognitive Hurdle: You should overcome the Cognitive Hurdle by placing managers face-to- face directly with problems and customers. You should also find new and rapid ways of communicating your strategies to the interested parties to avoid any kind of misunderstandings or confusion. Let us look at each in detail.
What Is the Right Strategic Approach for You? So, what kind of a strategic approach should you use? You should carefully consider the following three factors to find the right strategic approach for your company: The structural conditions in which the company operates The resources and capabilities of the company The company s strategic mind-set
ManagementStudyGuide.com This is a DEMO Course On Blue Ocean Strategy Register Today and Get Access to Unlimited Courses. What Do you Get: 1. Access the Courses Online. 2. Download Powerpoint Presentation for Each Course. 3. Get Certificates.
