What is meant by a blue ocean?
Blue ocean is an entrepreneurship industry term created in 2005 to describe a new market with little competition or barriers standing in the way of innovators. The term refers to the vast “empty ocean” of market options and opportunities that occur when a new or unknown industry or innovation appears.
What is Blue Ocean Strategy example?
The first example of blue ocean strategy comes from computer games giant, Nintendo, in the form of the Nintendo Wii. The Nintendo Wii launched in 2006 and at its heart is the concept of value innovation. This is a key principle of blue ocean strategy which sees low cost and differentiation being pursued simultaneously.
How do you use blue ocean strategy?
Here’s how you create a Blue Ocean:
- Define the current reality.
- Identify a segment of customers who are only interested in or find value in a portion of the features of a product or service.
- Alter the product or service to be inferior on the aspects that are less valued by your new target audience.
Why is it called blue ocean strategy?
A blue ocean is an analogy to describe the wider, deeper potential to be found in unexplored market space. A blue ocean is vast, deep, and powerful in terms of profitable growth.
Is Apple a blue ocean strategy?
The company has created Apple is a valuable brand in the global market. Apple use blue ocean strategy to remove competition and create a new market for new products. Blue ocean strategy helps to the Apple company to develop their own market rather than trying to beat competitors to reach top in the market.
Is Netflix a blue ocean strategy?
Netflix. The first company that used the blue ocean strategy is Netflix, a popular subscription-based streaming service.
Is Uber a blue or red ocean strategy?
Despite a long-term stronghold in the taxi industry, Uber has grown faster than any other company ever by reinventing the market. Uber created a blue ocean, they turned non-customers into customers. In blue oceans, demand is created rather than fought over. This provides growth that is both profitable and rapid.
Is Uber an example of blue ocean strategy?
Uber is classical Blue Ocean Strategy example where in the company tried to differentiate itself from the regular cab companies and in turn developed low cost business model that generates good revenues for drivers and company.
Is Starbucks a blue ocean strategy?
Starbucks is an excellent example of a company that has successfully implemented the Blue Ocean Strategy. Many cafes were already established when Starbucks was launched.
Does Mcdonalds use blue ocean strategy?
McDonald’s is using Blue Ocean Strategy (BOS). Blue Ocean Strategy states that an organization can produce higher growth and profits by creating new demand in an uncontested market space than by competing head-to-head with other suppliers for known customers in an existing industry.
Is Airbnb a blue ocean strategy?
Both Uber and Airbnb are great examples of the blue ocean strategy.
Is Amazon a blue ocean strategy?
Amazon products prove that creating blue oceans builds brands. So powerful is blue strategy, that, in fact, in can create brand equity that lasts for decades. Traditionally, companies tend to focus on competition in order to expand their market share in the industry and increase profits.
What is Red Ocean vs Blue Ocean?
Red Ocean vs. Blue Ocean Strategy
| Red Ocean Strategy | Blue Ocean Strategy |
|---|---|
| Compete in existing market space. | Create uncontested market space. |
| Beat the competition. | Make the competition irrelevant. |
| Exploit existing demand. | Create and capture new demand. |
| Make the value-cost trade-off. | Break the value-cost trade-off. |
How does Amazon use blue ocean strategy?
Amazon has 45% of E-Commerce total market sales being 235.8 billion dollars[1]. Going in the opposite direction of the market, Amazon was able to reduce the delivery time and now you can purchase a product and get it delivered to your house in 2 days with no additional cost. …
Is Amazon Blue Ocean or Red Ocean?
Amazon created its Blue Ocean with Kindle where competition became irrelevant due to the value offered at the unmatchable price. For now, AWS(Amazon Web Services) complements the Blue Ocean Strategy of Amazon where competition is catching up but still, Amazon remains the topmost Cloud Services Company.
What is Blue Ocean Strategy PPT?
Value Innovation The Cornerstone of Blue Ocean Strategy value creation focusing on beating the competition, you focus on making the competition irrelevant by creating a leap in value for buyers and your company, thereby opening up new and uncontested market space Technology driven.
How many pages is Blue Ocean Strategy?
Blue Ocean Strategy
| First edition cover | |
|---|---|
| Author | W. Chan Kim and Renée Mauborgne |
| Media type | Print (Hardback) |
| Pages | 240 pp, 287 pp (expanded edition) |
| ISBN | 1-59139-619-0 ISBN 978-1-62527-449-6 (expanded edition) |
What is Blue Ocean Strategy Canvas?
The Blue Ocean Strategy Canvas is a model with which you can compare products or companies. On the horizontal axis, you place the most important parameters for the specific product or company that you want to analyze. On the vertical, you indicate whether this value is high or low at the company you are investigating.
What are Blue Ocean Strategy tools?
Chan Kim and Renée Mauborgne’s Strategy Canvas is a central diagnostic tool and an action framework that graphically captures, in one simple picture, the current strategic landscape and the future prospects for an organization.
How do you make a blue ocean strategy canvas?
5 Proven Steps to Creating Your Own Blue Ocean Strategy
- Step 1: Create A Strategy Canvas. A strategy canvas is the most fundamental tool used in the Blue Ocean Strategy framework.
- Step 2: Raise An Attribute.
- Step 3: Reduce An Attribute.
- Step 4: Eliminate An Attribute.
- Step 5: Create An Attribute.