Analysis Of Blue Ocean Strategy

In the article “Blue Ocean Strategy”, the authors explore the idea of a blue and red ocean. These terms describe two certain types of competitive environments, specifically looking at the competitive business environment. On one hand, a competitive environment can be a red ocean, such that companies are ruthless players looking for ways to penetrate into different industries. The authors believe that red oceans seem to reflect the way the business environment looks like today, competitors viciously fighting for demand. “Red” ocean is suppose to signify the bloody battle competitors can experience in this certain environment. Such that business today understand that in a red ocean, there are industry boundaries that exist and accepted.A red

The first, “blue oceans are not about technology innovation”, authors believe that technology isn’t a big factor in a blue ocean. It is a involved in the creation of blue oceans but they are not key factor. Second, “incumbents often create blue oceans and usually within their core business”,this point illustrates the fact that blue oceans are near everyone and could possibly be hidden in your company.Third, “company and industry are the wrong units of analysis”, this point want to show people that companies can thrive and fall in different cycles. No company is able to only rise, there is always a point of fall. Many people misunderstand blue ocean to be only success but authors say that the real unit of analysis of a blue ocean is the strategic move. Strategic moves are the set of managerial actions and decisions that help create major market business. Lastly, “creating blue oceans builds brands”, this shows that companies that were blue oceans in the past have made mark both in their time and also in current times. Companies such as Apple and Ford, have been able to build off their brand to expand. People trust their companies since it’s been in the industry for such a long time. This also stands true for companies that are not existent today, such as Nickelodeon, a companies known for the short funny films. While they were blue oceans in the past, their company brand is still known