A Critique on Blue Ocean Strategy

Topics: Blue Ocean Strategy, Learning curve Pages: 2 (570 words) Published: November 17, 2013


A Critique on Blue Ocean Strategy

The Blue Ocean strategy appears to be an ideal move in the market until I learned its own drawbacks. Its advice is to create an uncontested market space, meaning no competition. I consider it a head start, yet it would just be an amount of time before others stand at-level with you. A first entrant earns the early profit, and the second entrant will likely perceive the first as a platform and eventually overtakes the same firm. Another drawback of the blue ocean is the uncertainty of the unformed market. Again, first entrants may be taken as test drives by subsequent entrants. Furthermore, entry barriers will probably be weak as the pioneer starts at the early stages of the unformed market.

Having been a student an early age, I can more effectively link this topic to the issues I have encountered in school. In times, students treat their schoolmates as competitors who are really felt when nearing rankings and employment. Blue ocean strategy is one employed by the student who independently and creatively makes his own work. Others imitate and enter his ideas to compete with him. A student bears the costs of bringing out his creativity and others benefit on the costs which they did not bear. All students gain the credit for their works, yet only one or a few incurs the cost of generating their ideas. In the business point of view, a pioneer firm incurs the costs such as Research and Development while following firms save on such costs.

In school, I have tried using the “Blue Ocean” as well as refraining from it. Compared to emulating others’ work, making my own creativity definitely gave an advantage in the long run. It’s about moving through your own experience curve rather than in using another one’s. The same could be an advantage in the business point of view. Being the test drive brings a firm a step higher in their experience and learning curve. However, new entrants could just use your developments,...
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