Blue Ocean Strategy

I held blue ocean strategy book in my hand, flipping through the introduction part thinking "mmm not too bad.. interesting!" Indeed this book caught my attention to read more about it. Blue Ocean strategy written by W. Chan Kim & Renee Mauborgne talks about current market industry using value innnovation process and tools to maximise profits and long term revenue.The innovation (in product, service, or delivery) must raise and create value for the market, while simultaneously reducing or eliminating features or services that are less valued by the current or future market.

Blue ocean strategy focus on unknown market space, no competition. Demand is created rather than fought over. There is ample opportunity for growth that is both profitable and rapid. In blue oceans, competition is irrelevant because the rules of the game are waiting to be set. Blue ocean is an analogy to describe the wider, deeper potential of market space that is not yet explored. Few importants parts in Blue Ocean strategy:

1. Value Innovation
2. The six principles of Blue Ocean Strategy
3. Analytical frameworks and tools like strategy canvas.

Opposites is the Red Ocean. "Red" speaks of blood meaning in this strategy, head-on head competition occurs for known customers in an existing industry. Here companies try to outperform their rivals to grab a greater share of product or service demand. As the market space gets crowded, prospects for profits and growth are reduced. Red ocean illustrates the market condition nowadays. The winners are those who succesfully won over competition amd losers says "Bye Bye" making the ocean Bloody!



Blue Ocean strategy is proven more effective over the recent years. Cirque du soleil uses this strategy and they very successfully entered a structurally unattractive circus industry.

If you are interested in management or business aspects get the book and read it! You will not get knowledge, who knows one day you will gain profits from it.