The Blue Ocean strategy in marketing is a unique approach to building a customer base. Instead of trying to compete in an overcrowded marketplace with existing companies, a Blue Ocean strategy seeks to build an entirely new market area. With the rapid growth of technology and globalization, the importance of a Blue Ocean strategy has grown in recent years. The “Blue Ocean strategy” is a term that originated from the 2005 book, The Blue Ocean Strategy, by W. Chan Kim and Renee Mauborgne that describes the opportunities of vast, untapped market spaces, or "Blue Oceans," that can be developed by expanding market boundaries or launching new industries. The concept of "Blue Ocean strategy" was ...view middle of the document...
The first part presents key concepts of Blue Ocean strategy, including Value Innovation
2. The second part describes the four principles of Blue Ocean strategy formulation:
• How to create uncontested market space by reconstructing market boundaries,
• Focusing on the big picture,
• Reaching beyond existing demand and
• Getting the strategic sequence right.
3. The third and final part describes the two key implementation principles of Blue Ocean strategy including tipping point leadership and fair process.
One of the best examples of a Blue Ocean move can be found in technology realm. The Nintendo Wii product changed the game system world when it was released about 10 years ago. Instead of competing with the PlayStation and Xbox, Nintendo Wii creators decided to come up with a whole new gaming concept that used hands free motion detector detectors rather than handheld button control consoles. Although the company had fewer resources than the current top name brand gaming manufacturers, they were able to build and manage a large market share because it introduced something that the market and consumers had never seen done. Ultimately the market received the product well and Nintendo Wii created a whole new market area for themselves in which they had no competitors.
An additional example of a Blue Ocean move is the creation of Tom’s shoes. Instead of just making and selling shoes for profit, TOMS creates an additional pair of shoes each time a consumer makes a purchase and donates the additional pair to a child in a third world country. This strategy allows for consumers to purchase and donate simultaneously without the additional added cost. In...