Blue Ocean Strategy Strategic Management

Highlights & Key Points

Reflective Thoughts/Application

1. According to the authors, one of the best ways to ensure the success of an organization is by reinvesting itself and creating uncontested market space that makes the competition irrelevant rather than confined to the existing industry or stealing customers.

2. The authors go on to describe the business space that exists in any industry as the red and blue oceans. The red ocean represents all the industries that currently exist in the global market while the blue ocean space represents all the industries that do not exist (Kim & Mauborgne, 2016).

3. The red ocean space donates the market boundaries that are largely defined and accepted globally and that have clearly set competitive rules and regulations. Therefore, it is relatively difficult for organizations to penetrate in this kind of space for a company has to outperform its rivals to gain a larger market space.

4. The blue ocean space is easy to penetrate the market is unknown and unattained by competition. Therefore, a company in this market space has to strive to create a demand for its products and services rather than fighting for the demand.

5. The authors go on to say that they feel that blue ocean will remain the engine of growth in the near future since there is a whole large market that is untapped both at local and international levels.

6. With the continuous innovations in technology, an organization can share information and data from different regions which in turn helps in the production of an unprecedented array of products and services (Pichère, Feys, & Probert, 2015).

7. Unfortunately, most companies are focusing on the red ocean by creating line extensions which are merely an improvement of the existing products and services rather than focusing on new and untapped markets. Notably, most of the organizations have adopted the military strategy in their companies which in turn minimizes the probability of creativity and innovation in the blue ocean space.

8. The article has gone on to state that the blue ocean market space is not about technological innovation as most managers an leaders think, but it is about, the creation of new products within the core business of an organization.

2. Understanding the difference between the red and blue ocean strategy can help any leader to focus on new markets in the local and international platform rather than focusing on fighting for the available market.

3. Leaders who focus on blue ocean strategy focus on creating demand for new customers who in turn attract other customers and within a short period of time the expands and grows.

4. Investors and creators should not only focus on strategy to exploit the blue market space since technology is not the defining feature of this strategy. Therefore, leaders should attempt to tap the untapped market in their core businesses by creating unique products that give value to their new and potential customers (Siegemund, 2008).

5. However, for companies in the red ocean market space to change to blue ocean companies, they need to change their military organizational strategy that focuses on the hierarchical structure and big titles such as the chief executive officer rather than the profitability of the company.

6. Leaders should focus on other important issues to get the company to the next level rather than using the competition as a benchmark. Therefore, they should create a leap in value for both the customers and the organization itself.

References

Kim, W. C., & Mauborgne, R. (2016). Blue ocean strategy: How to create uncontested market space and make the competition irrelevant.

Pichère, P., Feys, B., & Probert, C. (2015). Blue Ocean strategy concept: Overview & analysis. Namur: Lemaitre Publishing.

Siegemund, C. (2008). Blue ocean strategy for small and mid-sized companies in Germany: Development of a consulting approach. Hamburg: Diplomica-Verl.