Analysis of Blue Ocean Strategy

Running Head : Blue Ocean Strategy

Analysis of Blue Ocean Strategy

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[Course] Analysis of Blue Ocean Strategy

The blue ocean strategy is a strategy to create uncontested market space . The blue ocean is the unknown market space where there is no competition . It focuses on creating and capturing the demand , rather than exploiting the existing one . It can be thought of a business model where the company pursues differentiation and low cost production . In contrast , is

the red ocean strategy which signifies the market place where everyone competes , and focuses on rivalry and competition , rather than creating value

I believe that the blue ocean strategy is a valuable concept for our company as it gives a different metaphor to emphasize the importance of value creation . I believe that the `meaning ' of the article is exceptional value creation and innovation . In many of the mature industries it has been seen that companies forget to create value for their customers , and just focus on rivalry and beating the competition in the market through advertising and low prices . They are number driven which blinds them from the big picture . Then , there comes a company that refocuses on the customer and becomes a hit . For example , Southwest didn 't directly compete with Jet Blue , because it knew it would lose Instead , it created a whole new business model that just focused on what the customers wanted , and eliminated all the unnecessary perks...