In this strategy there is room for growth both in terms of profitability and rapidity.(ECO MAX Training and Learning Centre,2008). In Blue Ocean there is no scrambling for competition rather competition is created.

Under this strategy the market environment created is unique for there is no competition. Blue Ocean operates under the notion that all other firms are not in existence. In contrast to the blue ocean, in the red ocean there is so much input but the profits keep on reducing because of the bloody competition. The normal competitive market is referred to as the red oceans this is where industries are crowded in one space and they compete with their rivals for the market share. In summary, BOS has three major conceptual building blocks value innovation, tipping point, fair process and leadership. BOS encompasses both strategy formulation and strategy execution. Frameworks and tools are generally deliberately crafted to visual so as to not only build the collective wisdom of the company but also to successfully implement through easy communication. In principle the BOS frameworks and tools consist of strategy canvas, value curve, four actions framework, six paths, buyer experience cycle, buyer utility map and blue ocean idea index. In some instances it has been pointed out that the innovation is merely an experimental process BOS on the other hand offers logical, efficient and reproducible methodologies and processes in search of innovation through the existing and also new firms. BOS does not seek a company to do better than its rivals in a competitive market but rather its aim is to craft new market space otherwise known as a blue ocean hence rendering competition immaterial.( 2009).BOS usually creates and offers a set of methodologies and tools that are used in generating new market space. How does the strategy Operate?īlue Ocean Strategy (BOS) first principle is the concurrent chase of differentiation and low cost.

Blue ocean will bring a change for in the past competition has always been base on red ocean strategy ( Robert Morris 2005). First the book by the two authors is as a result of study of more than 150 strategic moves spanning more than 30 industries over a period of 100 years.

According to Kim and Mauborgne 2007 the concept of the Blue Ocean strategy operates on nine key principles. Blue Ocean is a metaphor that was developed by W.

Free for mac instal Blue Ocean Strategy