What is the meaning of Blue Ocean Strategy?

Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. It is about creating and capturing uncontested market space, thereby making the competition irrelevant.

What is Blue Ocean Strategy and example?

The first example of blue ocean strategy comes from computer games giant, Nintendo, in the form of the Nintendo Wii. The Nintendo Wii launched in 2006 and at its heart is the concept of value innovation. This is a key principle of blue ocean strategy which sees low cost and differentiation being pursued simultaneously.

What is Blue Ocean Strategy explain with an Indian example?

The Blue Ocean Strategy proposes that instead of fighting for a share in the highly competitive but shrinking market, feast on the unexplored new segments, thereby making the competition irrelevant. Since market boundaries are not defined, it can be reconstructed by new ideas of the industry players.

What are the key features of Blue Ocean Strategy?

The distinctive characteristics of a blue ocean are opposite to those of red oceans:

• new unknown market.
• there is no competition as there are no competitors.
• you can simultaneously use differentiation and low price strategies.
• seeking for potential customers.
• demand development is required.

Is Netflix a blue ocean strategy?

Netflix. The first company that used the blue ocean strategy is Netflix, a popular subscription-based streaming service.

Which companies use blue ocean strategy?

Blue Ocean Strategy Examples

• Blue Ocean Strategy Examples:
• iTunes. With the launch of iTunes, Apple unlocked a blue ocean of new market space in digital music that it has now dominated for more than a decade.
• Bloomberg.
• Canon.
• The Ford Model T.
• Philips.
• Quicken.
• Ralph Lauren.

Does Netflix use blue ocean strategy?

Does Uber have a blue ocean strategy?

Despite a long-term stronghold in the taxi industry, Uber has grown faster than any other company ever by reinventing the market. Uber created a blue ocean, they turned non-customers into customers. In blue oceans, demand is created rather than fought over. This provides growth that is both profitable and rapid.

Why is blue ocean strategy important?

Based on the ingenious strategy developed by W. Chan Kim and Renee Mauborgne, a Blue Ocean strategy allows brands to develop and thrive within an uncontested market space, while simultaneously making competition irrelevant.

How did Netflix use the Blue Ocean Strategy?

Netflix’s blue ocean idea was to make movies available online. When their competitors started applying the same strategy, Netflix launched its original shows and films. This way they proved that it is possible to switch to the blue ocean more than once in the same industry.

Is Google using Blue Ocean Strategy?

Google is a wonderful company revolutionizing information technology. The success of the networking company relies on Google’s adoption of Blue Ocean Strategy.

Does Netflix use a blue ocean strategy?

What can be said about blue ocean strategy?

Blue Ocean Strategy is a marketing theory in which a business enters a market that has little or no competition . The strategy focuses on moving away from an existing market and seaching for new markets . Specifically, these new markets give a company a very high competitive advantage as well as low price/cost pressure.

What is the purpose of the blue ocean strategy?

The goal of a Blue Ocean Strategy is for organizations to find and develop “blue oceans” (uncontested, growing markets) and avoid “red oceans” (overdeveloped, saturated markets). A company will have more success, fewer risks, and increased profits in a blue ocean market.

What is the logic behind blue ocean strategies?

The logic behind blue ocean strategy is counterintuitive: It’s not about technology innovation . Blue oceans seldom result from technological innovation. Often, the underlying technology already exists-and blue ocean creators link it to what buyers value.

What are blue ocean and red ocean strategies?

A blue ocean strategy seeks to avoid competition completely; thus, competitive strategies are less important. Competitive strategies are necessary, but they are not adequate to grow a market position. In a red ocean strategy, a “structuralist” view is that a competitive market is structured by conditions that force firms to compete.