Marketing Strategy

There are 6 main misconceptions about Blue Ocean strategies. First misconception is that Blue Ocean is about new products, new technologies or diversification. It can be misleading since blue oceans can be created with or without new technologies, products and diversification. These factors can be beneficial but not mandatory. Second misconception is Blur Ocean strategy is cowardly approach as it asks companies to evade the competition. In other words, it asks for other companies to switch to blue ocean strategies. Third misconception is Blue Ocean Strategy is a customer-oriented strategy. It is not solely customer-orientated strategy. It also includes buyer value. Blue ocean strategy doesn’t focus completely on existing customers. They try to find new demands for the product which eventually bring more customers. Forth misconception is Blue Ocean is only wishful thinking, as any blue ocean created usually turns red rapidly. That’s not necessarily true since Red Ocean might mistake blue oceans for not truly blue oceans. Sometimes customers, companies might mistake new products or technologies for blue oceans when in reality they are not. It all comes to knowledge of what truly defines Blue Ocean. Fifth misconception is Blue Ocean Strategy is like an old wine in a new bottle, as it is just a modified version of differentiation strategy. The blue ocean strategy concentrates more on existing resources to achieve breakthrough in value. Last misconception is Blue Ocean Strategy doesn’t fit the need of Chinese companies. Yes, it is true that Western markets were more open to any trade, new strategies and market economy. Since China has entered WTO, it has become more open for trade and market economy. (Ji Mi)

Some of the key elements of Blue Ocean strategy are never using competition as benchmark. It also rejects the fundamental way of convention strategy. The blue ocean strategy incorporates differentiation and low costs at the same time which makes them more...