Blue Ocean Strategy
Book Review
Strategic Move
- •Correct unit of analysis for explaining the creation of blue oceans and sustained high performance, versus the company or industry
•Set of managerial actions and decisions involved in making a major market-created business offering
•Red Ocean vs. Blue Ocean
Red Oceans – Conventional Approach
•Focus on beating the competition
•Compete in existing market space
•Build a defendable position within the existing industry
•Use competition as a benchmark
•Exploit existing demand
•Choice between differentiation and low cost
- Greater value for customers at a higher cost or a reasonable value at a lower cost
Blue Oceans – Value Innovation (to capture market)
•Make competition irrelevant
•Create a leap in value for buyers and the company
•Create new a market space
•Pursue both differentiation and low cost
link: blue ocean
