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CASE STUDY: Blue Ocean

Blue Ocean Strategy: From Theory to Practice

● Structuralist view / Enviromental determinism: Market structure (demand and supply


conditions) shapes conduct which determines end performance.
● People focus strategies on competition hence ignoring a more lucrative aspect of
strategy.
● BLUE OCEANS >> not competing but making the competition irrelevant by
creating a new market space where there are no competitors.

Blue Oceans

RED OCEANS BLUE OCEANS


Red ocean: all industries in existence Blue oceans: all industries not in existence
today.The known marketplace. today. The unknown market space.

- Industry boundaries defined and accepted. - Created beyond existing industry


- Competitive rules known > outperform boundaries.
rivals to increase penetration. - Competition is irrelevant - rules are yet to
- “cutthroat competition”. be set.

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