Despite-Earning-The-Accolade,-Top-Business-Book-Of42

Despite earning the accolade, Top Business
Book of the Year 2005 by Amazon.com, : How
to Create Uncontested Market Space and Make
the Competition Irrelevant, the public's interest
has not paralleled the significance of its
business contributions. Blue Ocean Strategy
has been regarded as a revolutionary business
strategy tool. In this article I will provide an
introductory brief of the ideas and principles of
Blue Ocean Strategy's business logic as filtered
through my personal lens.
business strategy

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How Blue Ocean Strategy Even Came About Since the sunrise of the
business age companies have battled nose-to-nose in search of
continued lucrative growth in their respected industries Companies fight
a competitive advantage battling over soul of the market place, but have
struggled for delineation However, these tactics which focus on
head-to-head competition should not be the way to generate profitable
growth in the future In a book that challenges everything you thought you
knew about the necessities for strategic achievement, co-authors and
founders of Blue Ocean Strategy W Chan Kim and Renee Mauborgne
dispute that traditional competition-based strategies result in a red ocean
of bloody competition in which rivals are combating over a reduction of
the profit pool

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Based on a study of 150 strategic moves spanning more than a hundred
years and 30 industries, the authors dispute that lasting achievement
comes not from battling competitors, but from creating "blue oceans
unexploited innovative market spaces ready for growth Such strategic
moves--which the authors call "value innovation"--create authoritative
leaps in value that often make rivals outdated for more than a decade
Blue Ocean Strategy presents a systematic approach to making the
competition irrelevant and outlines principles and tools any business can
use to make and capture blue oceans Milestone works that upend
customary thinking regarding strategy, this book charts a daring
innovative path to winning the future W

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Chan Kim is the Boston Consulting Group Bruce D Henderson Chair
Professor of Strategy and International Management at INSEAD Renee
Mauborgne is the INSEAD Distinguished Fellow and Professor of
Strategy and Management Example Lets consider how Netflix, online
and rent-by-mail movie business, successfully moved across existing
industry standards and applied Blue Ocean For a moment think of how
you rented movies in the late 1990s

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You had to drive to the store and rent movies at a moderately high price
Worst of all, you had to return them quickly amidst your business
schedule or face shamefully high late fees This usually meant rushing
back to the store by 11:00am Until 1997, when Netflix redefined the way
we borrowed movies Netflix's came up with a 100% consumer-focused
way to rent movies as its business model challenged the existing industry
standards

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Netflix created its blue ocean by being entirely different from its
competition: * It had no store as movies were selected by clients online
This kept costs down for Netflix, and for its consumers * Since movies
were mailed out the public no longer had to drive to plunge them off *
Postage was taken care of by Netflix, getting free of another source of
customer irritation * Delayed fees were eliminated

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You could keep a movie as long as you wanted * Movies could also be
watched online This eliminated waiting, and added extensive value for
customers * Pricing was set using a flat-fee monthly membership
formation, as an alternative of on a "per movie" basis

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This gave members more value for their money Netflix completely
changed the way the public rented movies, and changed how movie
rental companies delivered those movies As an effect, they had full
control of the online and rent-by-mail marketplace for nearly a decade
Competition has now crawled in, but Netflix has had such a huge head
start in the business and has established its brand name that it's going to
be tough for the competition to tremble them

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It's imperative to understand that companies don't have to entirely
redefine their business or business in order for Blue Ocean Strategy to
work Popularly, blue oceans are created from within existing
organizations It's typically about designing one new product or service
and linking it to what buyers actually wish for; even if they don't
comprehend they yearn for it Key Points: is a way for your business to
leave the competition behind, and go into a business strategy market
that's open and without interruption

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Its cornerstone concepts are that companies can present themselves,
and their clients, value while still increasing above their competition in a
significant way You can apply Blue Ocean Strategy to your business by
exploratory standards and steps that are a given in your business Look
to connect the lines, and classify what your consumers really want from
your company, and what existing problems you can assist work out

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