Blue Ocean Strategy

Blue Ocean Strategy Paper

Alvino Porter

MKT/421

August 25, 2015

Tammy Duty-Segura

Blue Ocean Strategy Paper

Blue Ocean Strategy is a book written by W. Chan Kim and Renee Mauborgne. The book Blue Ocean Strategy published in 2005, and according to zidate.com; the book illustrates methods that aimed to create demand for a product or service in a largely untapped market, rather than competing with other companies in an already saturated market (2015). The book also describes, “How companies traditionally work in "red ocean “conditions, where businesses viciously fight against each other for a share of the marketplace (Katherine Arline, 2015).

So what is the Blue Ocean Strategy and what is the importance of it? Kathrine Arline states that in the book “Blue Ocean Strategy”, W. Chan Kim and Renee Mauborgne argue that leading companies will succeed not by battling competitors, but by systematically creating "blue oceans" of uncontested market space ripe for growth. The strategy represents the simultaneous pursuit of high product differentiation and low cost, thereby making competition irrelevant. W. Chan Kim and Renee Mauborgne examined more than 150 strategic moves spanning more than a hundred years and 30 industries to come up with an alternative to the more common competition-based market strategies which in turn resulted in, the term Blue Ocean Strategy has come to refer to not only the book, but the business strategy itself (zidate.com 2015).

In the business world, there is the “blue ocean” and there is the “red ocean”. In the Red Ocean, Laura Agadoni states that if your market strategy consists of fighting for a piece of finite sales, you are in the red ocean (2014). Which, overall means that your business or company plan more than likely is competing with others in the same trade, trying to increase your market share. As more competition join to compete, you will see a decrease in profits. When you finally join the blue ocean world, the...