Blue Ocean
Date: 02/05/2013
Article: Harvard, Blue ocean strategy
“Competing in high overcrowded industries is no way to sustain high performance. The real opportunity is to create blue oceans of uncontested market place.” This quote that is on the top of the first page just about sums up the article, but I will go further in depth in what the article says. What is the best way to drive profitable growth in an industry? Or company? According to the article it is to enter into the market place that is not existent today that has no or little competitors. This is known as blue ocean. Red ocean on the other hand is the already existent market place that has a high number of competitors; all of the boundaries are already defined and accepted. The article refers to red ocean as a war because competitors battle against one another for market share and ultimately are trying to put the other out of business. The competition can be bloody and downright cut throat. The article encourages business to make a switch from the red ocean strategy to blue ocean strategy. Cirque Soleil is a prime example given that used blue ocean strategy. The circus idea was not new, but actually an unpopular event at the time that Cirque Soleil became a main hit. Cirque Soleil broke from a red ocean into a blue ocean (where most blue oceans are created) by breaking through the traditional boundary of separating circus and theatre. The other way that a company can become blue ocean is to give rise to completely new companies or industries but this has proven to be a much more difficult process. The article does say that it is necessary to have red Ocean strategies to create competitiveness but it is not enough to sustain high performance. It is also necessary y to create blue ocean strategies to seize new profit and growth opportunities. This article relates to our class in several ways. As sales people we must always consider new ways of selling. Salespeople must use the
Article: Harvard, Blue ocean strategy
“Competing in high overcrowded industries is no way to sustain high performance. The real opportunity is to create blue oceans of uncontested market place.” This quote that is on the top of the first page just about sums up the article, but I will go further in depth in what the article says. What is the best way to drive profitable growth in an industry? Or company? According to the article it is to enter into the market place that is not existent today that has no or little competitors. This is known as blue ocean. Red ocean on the other hand is the already existent market place that has a high number of competitors; all of the boundaries are already defined and accepted. The article refers to red ocean as a war because competitors battle against one another for market share and ultimately are trying to put the other out of business. The competition can be bloody and downright cut throat. The article encourages business to make a switch from the red ocean strategy to blue ocean strategy. Cirque Soleil is a prime example given that used blue ocean strategy. The circus idea was not new, but actually an unpopular event at the time that Cirque Soleil became a main hit. Cirque Soleil broke from a red ocean into a blue ocean (where most blue oceans are created) by breaking through the traditional boundary of separating circus and theatre. The other way that a company can become blue ocean is to give rise to completely new companies or industries but this has proven to be a much more difficult process. The article does say that it is necessary to have red Ocean strategies to create competitiveness but it is not enough to sustain high performance. It is also necessary y to create blue ocean strategies to seize new profit and growth opportunities. This article relates to our class in several ways. As sales people we must always consider new ways of selling. Salespeople must use the