Review on Blue Ocean Strategy

Review on Blue Ocean Strategy (BOS)

BOS is a kind of strategy which be inspires to innovate and focus on develops new demand and new markets through selling products e.g: Ipod, Ipad instead of fighting with the competition over the same market share as well as satisfying the same demand from the customers which is typically done in a red ocean strategy (ROS). In other word, BOS represent "untapped market space" and the opportunity to gain high profit for the companies. They urge companies to enhance the value of innovation by focusing more on price, utility, and cost positions. In addition, companies also suggested creating and capturing their new customers demand as well as keeping their focus on the big picture, not the numbers. (Kim and Mauborgne, 2005)

Therefore in summary, BOS is a strategy that mainly focuses on these matters:-

1. DO NOT compete in existing market space. INSTEAD companies should create their own uncontested market space.

2. DO NOT against the competition. INSTEAD companies should make the competition among your competitors become irrelevant.

3. DO NOT capture existing demand. INSTEAD companies need to create and capture new demand.

4. DO NOT make the value or cost trade-off. INSTEAD companies need to break the value/cost trade-off.

5. DO NOT align the whole system of a company's activities with its strategic choice of differentiation or low cost. INSTEAD companies should align the whole system of a company's activities in pursuit of both differentiation and low cost.

A Blue Ocean Strategy is more suited for companies that its products are on mature or on declining level of their product life cycle (Kim and Mauborgne, 2005). Competing in overcrowded industries is no way to sustain high performance. The rea...

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...f on the successful companies that implemented this concept and significance finding from the previous study by Nemani et.al , it can be said that WOS able to help us to explore new and fresh aspect on the business skill that not mainly focus on the profit oriented. This WOS also can be merging with another ocean strategy like BOS or ROS which it positively estimated able to produce better result to the company. Danai (2012) suggested that if companies that adopted Blue or Red Ocean add WOS in their development plan would help the company’s growth their sustainability.

References

1. Danai Chanchaochai, 2012. Blue ocean strategy: a powerful paradigm for sustainable success in a world where everyone can be a winner, DMG Book.

2. Markides, C., Geroski, P. (2005). Application of Red, Blue, and White Ocean Strategies in the Realm of Conscious Phenomenology.