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Blue Oceans and Other Big Ideas
Blue Oceans and Other Big Ideas
Red Oceans represent all industries in existence today. They have defined rules, competitors, and market boundaries. Key words might include competition, price wars, competition, wars, market share, commoditization, benchmarking, share, strategic positioning, value add. add.
Blue Oceans represent all industries NOT in existence today. This is undefined market space, otherwise known as OPPORTUNITY. Key words might be value innovation, focus, differentiation, creation of demand, new marketplace
Most blue oceans are created from red ocean companies expanding industry boundaries. For example, Cirque du Soleil or [yellowtail] (more on this in a bit)
The phrase Blue oceans is new, but the concept is not. Think of what industries existed in 1900. Take 3 minutes At your table, brainstorm a list of industries that have emerged since then.
Some of them might be automotives, aviation, health care, plastics, DVDs, computers, personal entertainment devices (iPods, for example). All of these industries created new market space.
The premise is simple: simple: To win in the future, companies must stop competing with each other. The only way to beat the competition is to stop trying to beat the competition.
The business environment in which most business strategy and management has been based on is changing, evolving or disappearing. Some of this change is due to technology. Other reasons might be culture, globalization, speed of new information, or the role of demographics in the workplace.
Value innovation is the new strategic logic behind Blue Ocean Strategy. Instead of focussing on beating the competition, you focus on making it irrelevant by creating a leap in value for buyers and creating uncontested market space.
Value innovation only occurs when organizations have aligned innovation with utility, price and costs. The market must be ready to accept the product, meaning that timing is key. The focus is on both differentiation and low cost to provide value to both customers and the organization.
Ranking Scale 12 10 8 6 4 2 0
Competetive Factors
Pr ice Im ag e ag in co g m pl ex i ty p di ve r es tig rs e e po rt f ea ol sy io to dr in ac ce k ss ib le
Fu n
Yellowtail
Mission Hill
Quails Gate
Creation Nets
Involve many sometimes hundreds or even thousands of people from diverse backgrounds coming together, often over the internet, to create knowledge, learn best practices, and build on each other s work. Nobody is as smart as everybody
William C. Taylor, Founder of Fast Company