What is “Blue Ocean” Strategy

Guokui Li

Alliant International University

Blue Ocean Strategy: Creating New Markets

First, Blue Ocean Strategy is a marketing theory from a book published in 2005 which

was written by W. Chan Kim and Renée Mauborgne, professors at INSEAD and co-

directors of the INSEAD Blue Ocean Strategy Institute.

And from the video, it shows that markets creating strategic moves the blue ocean

because the opportunities for all of us. Why we called it blue ocean strategy and not

blueish and marketing was that a strategy to be sustainable. Blue Ocean Strategy is

the alignment of the value proposition that makes buyers win profit proposition which

is how the company wins and earns money and people motivating the people and the

partners I have to work for me. Blue ocean strategy generally refers to the creation by

a company of a new, uncontested market space that makes competitors irrelevant and

that creates new consumer value often while decreasing costs.

For the essence of Blue Ocean Strategy, the Blue Ocean Strategy refers to industries

that have yet to be discovered by companies. Industries which don’t exist yet also

have markets without competitors. Rather than fighting for the same customers, in

Blue Ocean Strategy the demand is created and a market emerges. The Blue Ocean

Strategy approach is based upon the concept of value innovation, the concept seems to

go against all current business rationales as the message is not to compete. Instead,

companies look to find untapped markets through creating a new demand wilst at the

same time they seek to keep costs low. In this way, the company gains now markets

and the buyer gets value for money.