Blue Ocean Strategy

Assignment 5

Elizabeth P. Vxxxxxx

American Public University System

BUSN 313 Xxxx Fall 11 – Global and Competitive Strategy

Dr. Alex Lazo, Instructor

20 November 2011

Having a blue ocean strategy is not always enough to create uncontested market space because limitations to implementation exist. Blue ocean strategies themselves imply a break from the norm and generally require new ways of thinking and new ways of doing things. There are four identified hurdles which must be addressed in order to successfully implement a blue ocean strategy: cognitive, limited resources, motivation, and motivation (Kim & Maugborne, 2005, p. 147-148).

The cognitive hurdle refers to an inability to accept change. Many times people do not recognize that change is necessary because things are working out and are being done as they have always been done. The hurdle here is to motivate and encourage these people to move out of their comfort zone and challenge the status quo.

The limited resources hurdle refers to the assumed theory that a great shift in strategy requires more resources than the existing strategy. An interesting point that Kim & Mauborgne (2005) mention in our text is that many blue ocean strategies cut out the need for additional resources rather than raise the need (p. 147). I suppose this hurdle requires some creativity to overcome.

The motivation hurdle refers to the tendency for people to not want to work aggressively towards change. For any new concept/idea to work, each person in an organization must be willing and motivated to move together towards the common goal. Kim & Maugborne (2005) suggest some methods that can be used to motivate: “Kingpins” (respected and persuasive leaders within the organization) can be used as influencers to motivate while “atomization” can be used because it makes goals seem more attainable by breaking down a larger goal into smaller “pieces.” (p. 162-165). This hurdle also...