Gina Leigh Moore
University of Phoenix
Instructor: Michael Raasch
Blue Ocean Strategy
In today’s business world, most companies are trying to figure out the best way they can compete with their contenders. However, there is a theory which states that companies should instead be focusing on how they can compete with themselves. This theory is most commonly known as the Blue Ocean Strategy.
The first notion of the Blue Ocean Strategy was first brought to light in the book titled “Blue Ocean Strategy: How to create uncontested market space and make the competition irrelevant”, written by W. Chan Kim and Renee Mauborgne. In the book, Kim and Mauborgne describe how many companies are focusing on a Red Ocean Strategy which is the savage battle of rivalry between each other. They further explain that if companies would turn their competitive focus toward themselves, they would have the ability to create an unchallenged market space with the potential for expedited growth (Kim & Mauborgne, 2005).
According to Kim and Mauborgne, companies must utilize a “Four Actions Framework” to recreate consumer value elements in constructing a new value curve (Kim & Mauborgne, 2005). This framework asks four important questions:
What components ought to be raised much higher than the usually industry standard?
Which concepts has the business been competing for that ought to be disposed of?
Which variables ought to be reduced to an amount that is much lower than that or industry standards?
Which components ought to be made that the industry has never advertised?
Since noting these inquiries can be a troublesome assignment, Kim and Mauborgne believe it causes organizations to investigate each component the business contends on, which helps pioneers find the scope of implied suspicions they make unwittingly in contending. Furthermore, it causes them to seek differentiation and low cost to fracture the value-cost tradeoff. In addition, it brings focus to organizations that are concentrated just on raising and making, accordingly lifting the expense structure and the regular over-designing of products and services (Brooks, 2013).
Opportunities to create a blue ocean can be seen in all industries, regardless of whether a current business sector is alluring or not. This can be illustrated utilizing Apple, Inc. The organization was at one time a PC creator in an ugly industry. By progressively making a number of strategic Blue Ocean moves, for example, iPod, iTune, iPhone, and iPad, Apple, Inc. attained manageable productive development, as well as revitalization of the consumer decline in the personal electronic industry (Schawbel, 2014). Apple, Inc. accomplished its prosperity not by putting resources into what was then popular in the industry marketplace, but instead making vital moves to pioneer and mold…