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Blue Ocean Strategy

In the Blue Ocean Strategy the terms red and blue oceans denote the market universe. Red oceans are all the industries in existence today – the known market space. In the red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known. Here companies try to outperform their rivals to grab a greater share of existing demand. As the market space gets crowded, prospects for profits and growth are reduced. Products become commodities, and cutthroat competition turns the red ocean bloody.

If you answer yes to a majority of the below mentioned questions, then your company is stuck in the red ocean.

Is your company facing heightened competition from domestic and international rivals?
Do your sales representatives increasingly argue they need to offer deeper and deeper price discounts to make sales?
Are you finding you need to advertise more to get noticed in the marketplace, yet the impact of each advertising dollar spent is falling?
Is your company focused more on cost cutting, quality control, and brand management at the expense of growth, innovation, and brand creation?
Do you blame your slow growth on your market?
Do you see outsourcing to low cost companies or countries as a principal prerequisite to regain competitiveness?
Are mergers and acquisitions the principal means your company sees to grow?
Is it easier to get funding to match a strategic move made by your competitor than it is to get internal funding to support a strategic move that allows you to break away from the competition?
Is commoditization of offerings a frequent worry of your company?
List your key competitive factors; now list your competition’s. Are they largely the same?
Blue Ocean Strategy offers you a way to swim out of the red ocean filled with sharks. It presents a theory, tools, and frameworks to allow your company to break away from the competition and create a blue ocean of new market space.

Search for the ‘Blue Ocean Strategy’ book on Amazon.com
Read more on the official web-page Blue Ocean Strategy
PowerPoint introduction to Blue Ocean Strategy at studyMARKETING

This article is written by Majbritt Thomsen, administrator on ‘Views On Tourism’.

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Posted in Cooperation and network, Performance and management.


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