Application of Blue Ocean Strategy in pharmaceutical industry Chandan Kumar, Rahul kumar, Manthan D. Janodia, N.

Udupa Department of Pharmacy Management, Manipal College Of Pharmaceutical Sciences,Manipal University,Manipal -576104, Karnataka, India e-mail :chandancops2007@gmail.com ABSTRACT According toW.Chan kim and Renee Mauborgne Blue Ocean strategy is the systemic pursuit of new market and new demand creation through the simultaneous pursuit of differentiation and low cost ( value innovation). The basic idea is to make the competition irrelevant through value integration. Apart from this there exists Red Ocean strategy in which companies competes among themselves in same segment in a similar fashion or trying to steal customers from rivals. The boundaries of the market are defined and no space for market expansion exists. As the market space gets crowded, profits and growth of companies reduce and due to cutthroat competition, the red ocean turns bloody. Red ocean strategy Competes in existing market space. Beat the competition, Exploit existing demand Make the value/cost trade off. Cost reduction Defend current position perspective. Align the whole system of a companys activities with its strategic choices of differentiation and low cost. Blue ocean strategy Creates uncontested market space. Makes competition irrelevant. Create and capture new demand. Break the value/cost trade off. Value creation Innovate and pursue new opportunities perspective. Align the whole system of a companys activities in pursuit of differentiation and low cost

The aim of this study was to understand the applicability of Blue Ocean strategy to pharmaceutical industry. Since, pharmaceutical industry is highly crowded today we analysed a few companies that followed Blue Ocean strategy and carved a niche for themselves and their products in the market. Some of the examples of Blue Ocean strategy include newer therapy classes of COX-2 inhibitors, PDE 5 inhibitor such as Sildenafil Citrate that opened up a new segment of ED market. We conclude that pharmaceutical companies can grow by value integration and with the help of Blue Ocean strategy.