Blue Ocean Strategy was issued by Harvard Business Press in the year of 2005, written by two INSEAD professors W. Chan Kim and Renée Mauborgne. In the methodology of the Blue Ocean Strategy the first pillar is value innovation, which dates back to the year of 1997. This paradigm changing methodology was named Blue Ocean Strategy, in contrast with Michael Porter’s Red Ocean Strategy, from the Harvard Business School. Porter, in his book called Competitive Strategy, which serves as the bible of strategy making, is the one that uses this phrase as a synonym for the international market. On this market everyone is bleeding and is suffering; the more a market is defined, the bloodier the competition becomes. Kim and Mauborgne’s Blue Ocean however covers a completely new attitude of mind and strategy, which is different from concentrating on competitors and on the pressure of ‘value for lower cost’. Instead it focuses on new products, new services and the creation of new markets.
The Blue Ocean Strategy crosses and often demolishes the barriers of industries, and is constantly looking for new need-components, thus creating endless market spaces. One of the main characteristics of the Blue Ocean Strategy is that we cross the traditional industry and /or service barriers, which results in acquiring the consumers of another industry or service, or we may even bind them to our products.
Connecting business objectives:
|Diagnostics||Process alignment||Competence development||Change management||Implementation support|