Oh Young Koo, executive institute fellow at INSEAD’s Blue Ocean Strategy Institute, explains that blue ocean theory goes beyond what is traditionally taught as strategy in the core MBA syllabus. It’s essentially about ‘creating and capturing uncontested market space, thereby making the competition irrelevant.’ The blue ocean strategy encourages you to innovate and develop new, affordable products that make competition irrelevant. A blue ocean is an unknown market space untainted by competition it revolves around value innovation. If you’ve come across any of these, you’ve come across blue ocean strategy.Īccording to Chan and Renée ( pictured), blue ocean strategy is when a company simultaneously pursues differentiation and low cost to open a new market space and create new demand. Think of Netflix, Cirque du Soleil, and even classical music superstar Andre Rieu. The term blue ocean strategy was coined in 2005 by INSEAD professors Chan Kim and Renée Mauborgne, in their co-authored book, Blue Ocean Strategy.Įven if you haven’t come across the term, or don’t know what it means, you’ll have likely come across a company that’s adopted a blue ocean strategy or a blue ocean shift.
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