Strategy Analysis: An Analysis Of The Blue Ocean Strategy

When I read the "Blue Ocean Strategy", I think the Blue Ocean represents the unknown market space does not yet exist. Blue Ocean is characterized by new market boundaries, new demands, unpredictable high profit growth, without forming competition rules. Now be market conditions, market competition requires companies to implement the Blue Ocean strategy. market is in motion, the development of new industries and markets are always constantly developed, and today the number and type of industry and increasingly have the vast amount of sound. But companies cannot meet the current market space, because of changes in trade barriers of economic globalization and regional demolition, supply and demand, so the market competition becomes increasingly
All this should open up new market boundary core blue ocean strategy is "value innovation", but the value of innovation includes two meanings, the first is to get the value of the buyer, and the second is the value of the business acquired. The buyer wants the value you get is efficiency and prices, no new efficiencies, or cost more than the capacity of the buyer of products and services that are not wanted. At the same time companies have to obtain authorization from the new strategy to create value products and services. Cost and seller's price is the focus; high costs cannot let corporate profits. Blue Ocean strategy is both innovative heavier weight value, only companies to price, efficiency, and cost a whole when one is the real value of innovation. Blue Ocean Strategy to expand the non-competitive markets, to avoid competition and create new demand, the price of breaking the law of the cost for each other, while the pursuit of differentiation and low
According to the book's description strategic layout tool is the core blue ocean, rebuilding strategic center, away from the competition problem, turn to the market, according to the original partition is a non-customer groups, from customers and non-customers in common, redefined industry elements and elements should be concerned about the reconstruction of the buyer, which open up new industry boundaries author proposes four principles to develop strategies to address the four core issues. Reconstruction market boundaries, to guide us on how to develop blue ocean across different industrial systems approach, to avoid the risk of looking for boundaries. Rather than focusing on the global figures provided to us how to use the four-step approach to strategic planning, risk-averse planning. Beyond existing demand, tell us how to develop the largest blue ocean, generate new demand, the scale of risk aversion. Follow rational strategic order, provides the establishment of a viable business model, create a method to maintain the growth in demand, to avoid the risk of the business model. The authors provide six to cross the border, but I think the core is how to reconstruct market boundaries. Looking gap between Substitutes and Alternatives, a company not only to compete with rivals within the industry itself, but also to provide a competitive Substitutes