The Negotorical Analysis Of The Blue Ocean Strategy

Many companies are familiar with the red oceans and feel accustomed to competition. However the main challenge companies face thereby is their incapacity to create new demand or expand their market share. The Blue Ocean Strategy offers users a framework for creating uncontested market space and change the focus from the current competition to creation of innovative value and demand. The theoretical analysis reviews the core basics of the Blue Ocean Strategy, distinguishing between red and blue oceans. Here the focus lies on the opinion of the authors, the Blue Ocean Strategy tools used, the awakening method and exploration on the theory. In the practical part of the research the Blue Ocean Strategy is tested on its reliability using a three
In Red Oceans, industries boundaries are defined and accepted, and the competitive rules of the games are known. Blue ocean strategy is one of the most powerful innovation processes, aiming at creating profitable high-growth for companies. Most Blue Oceans are created from within red oceans by expanding industry boundaries. The objective is to create and capture new demand by focusing on un addressed groups of customers (non-customers), with a strategic offering that creates a leap in value for both the buyers and the company. The blue ocean strategy while implementing the differentiated market offering should also ensure that sufficient barriers to entry are created for competition, to avoid competition as long as possible. The barriers to entry can vary from business to business, Southwest airlines creating the first movers advantage in utilizing secondary airports to create a massive network, or policy regulations or quality of product
The strategic examines the buyer utility,price, cost and adoption. If the price is affordable for the majority of customers, whether the costs can be turned to profit at a strategic price and what to o if adoption barriers arise while actualizing the business potential. The Fifth Principle is to Surpass the Organizational Barriers The implementation of the Blue Ocean Strategy is challenging exercise and attention has to be paid to some issues that will be addressed in this part. There are some barriers or hurdles that have to be handled for a successful strategy execution. The Sixth Principle is Building Execution into Strategy For changing and executing the strategy everyone within the organization who is important or everyone from top to front lines should be aligned. Creating a culture of trust and commitment is a fundamental basis of implementing a new Blue Ocean Strategy.

Below the value innovation is illustrated and highlighting, two basic statements of the Blue Ocean Strategy. While the costs are reduced, customer value is raised, achieving a value innovation. In the red oceans, companies can reduce cost or raise customer value to achieve an increase in