A.Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant / W. Chan Kim, Renée Mauborgne.
1.Blue Ocean Strategy is a business strategy book first published in 2005, and written by Chan Kim who is The Boston Consulting Group Bruce D. Henderson Chair Professor of strategy and International Management at INSEAD and his college Renée Mauborgne who is the INSEAD Distinguished Fellow and a professor of strategy and management at INSEAD in Fontainebleau, France. Blue Ocean Strategy concerns about improving the quality of success by studying what have been done to make a positive difference and understand how to replicate it systematically. That strategic move which matters centrally is to create blue oceans. Blue Ocean Strategy concept is to break out the red ocean of crucial competition by creating uncontested market space that makes the competition irrelevant. Yet the overriding focus of strategic thinking has been on competition-based to red ocean strategies. Part of the explanation for that organization strategy is heavily influenced by its roots in military strategy. The very language of strategy is deeply influenced by military references chief executive “officers” in “headquarters,” and “troops” on the “front lines.” Described it this way, strategy is about confronting an opponent and fighting over a given piece of land.
2.Blue Ocean Strategy is about growing demand and breaking away from the competition. Although Blue Ocean Strategy is primary develop for business and industry world, still the strategy can be applied in management and administration of a country or organization. Blue Ocean Strategy addresses not only the analytic aspects but also the all important human aspects of how to bring an organization and its people on this journey with a willingness to execute these ideas in action.
3.In Malaysian perspective, our government had found the formula contained in this theoretical business strategy particularly beneficial in maximising output, while incurring the lowest cost possible. Malaysian government have identified Blue Ocean Strategy as a management tool which can be applied in the government’s administrative context as it enables us to think out of the box with good results. Our government has come out with a programme which adopts the Blue Ocean Strategy to overcome several issues. Malaysia national programme which applies the implementation of Blue Ocean Strategy is known as the National Blue Ocean Strategy. A National Blue Ocean Strategy programmes are to reduce crime, rehabilitate prison inmates at army camps, provide household assistance, ensure rural water supply and optimise vacant armed forces land for agriculture. The programme was an effort between several ministries with the government agencies. They include the Ministries of Defence, Home, Agriculture and Agro-based Industry, Information, Communications and Culture, Rural and Regional Development, Health, and the Civil Defence Department. The Programme is divided into three segments as per NBOS 1, NBOS 2 and NBOS 3.
4.To discuss the four actions framework and formulating of Blue Ocean Strategy and to determine its relevancy in the Army.
BLUE OCEAN STRATEGY FRAMEWORK
5.Blue Ocean Strategy consists of four action frameworks which are eliminate, reduce, raise and create. In order to apply these frameworks, there are questions need to be answered for each action framework. These questions are : Which of the factors that the organization takes for granted should be eliminated?, Which factors should be reduced well below the organization’s standard?, Which factors should be raised well above the organization’s standard? And lastly, Which factors should be created that the organization has never offered?
6.The first framework is the consideration for eliminating factors that organization has long...