Blue Ocean Strategy Paper
Blue Ocean Strategy Paper
MKT/421
July 21, 2014
Anatomy of Blue Ocean Strategy In order to process the nature of a blue ocean entity, it is imperative to grasp the point of derivation, which is otherwise known as a red ocean. A red ocean, which is polar to a blue ocean, generates its namesake from a literal representation. Imagine a feeding frenzy in the middle of the ocean; the water turns red with the victim’s blood as predators compete for survival. Now, apply this image to economic conditions. In an open market in any given industry, where there are established standards, barriers, and rules, competitors in a well-defined saturated industry jockey for market shares from the available pot. That, in a nutshell, is a red ocean. On the other end of the spectrum befalls the blue ocean, which can also be depicted through a literal illustration of its characteristics. In a blue ocean, a vast landscape void of competition and freedom to pursue self-manifested wills is at the discretion of the occupant. A blue ocean is uncharted, where opportunity reigns because those who have sought out these waters have done so through an innovative ability to navigate themselves out of the once crowded red oceans. It is a privilege to occupy these waters, and the following examination will detail why in terms relative to business practices. The blue ocean favors those who conceive a departure from paradigms. In order to obtain limitless and uncontested market shares, an entity traditionally has done so through differentiation and/or low cost. In doing so, the result is not to outperform competition, but rather, render competition irrelevant. The ability to corner a market and isolate oneself amongst its vastness is executed through means that redefine the terms of current competition within an established industry. Sure, ingenuity and crafting a new mode of production can lead to untapped market shares, but
MKT/421
July 21, 2014
Anatomy of Blue Ocean Strategy In order to process the nature of a blue ocean entity, it is imperative to grasp the point of derivation, which is otherwise known as a red ocean. A red ocean, which is polar to a blue ocean, generates its namesake from a literal representation. Imagine a feeding frenzy in the middle of the ocean; the water turns red with the victim’s blood as predators compete for survival. Now, apply this image to economic conditions. In an open market in any given industry, where there are established standards, barriers, and rules, competitors in a well-defined saturated industry jockey for market shares from the available pot. That, in a nutshell, is a red ocean. On the other end of the spectrum befalls the blue ocean, which can also be depicted through a literal illustration of its characteristics. In a blue ocean, a vast landscape void of competition and freedom to pursue self-manifested wills is at the discretion of the occupant. A blue ocean is uncharted, where opportunity reigns because those who have sought out these waters have done so through an innovative ability to navigate themselves out of the once crowded red oceans. It is a privilege to occupy these waters, and the following examination will detail why in terms relative to business practices. The blue ocean favors those who conceive a departure from paradigms. In order to obtain limitless and uncontested market shares, an entity traditionally has done so through differentiation and/or low cost. In doing so, the result is not to outperform competition, but rather, render competition irrelevant. The ability to corner a market and isolate oneself amongst its vastness is executed through means that redefine the terms of current competition within an established industry. Sure, ingenuity and crafting a new mode of production can lead to untapped market shares, but