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Applying Blue Ocean Strategy to Architecture and Business Models

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Applying Blue Ocean Strategy to Architecture and Business Models

The Blue Ocean Strategy is a discipline has been developed by W.Chan Kim and Renée Mauborgne, professors at INSEAD, who are co-authors of the book, Blue Ocean Strategy, and are co-directors of the Blue Ocean Institute. Blue oceans are defined by untapped market space, demand creation and the opportunity or highly profitable growth.

The term Blue Ocean is an analogy to describe the wider potential of market space that is vast, deep, and not yet explored. In blue oceans, competition is irrelevant because the rules of the game are waiting to be set. To seize new profit and growth opportunities, they also need to create blue oceans.

Red Oceans vs Blue Oceans. A Comparison

Red Oceans: Companies in the red ocean followed conventional approach of trying to out perform their rivals to grab a greater share of existing demand. As market space gets crowded, prospects for profits and growth are reduced.

Blue Oceans: Blue Ocean aims to create uncontested market space and make the competition irrelevant. Creating blue oceans builds brands.

Blue Ocean - Jump in with everyone else or jump right

Blue Ocean – Jump in with everyone else or jump right

Obstacles to Applying Blue Ocean Strategy.
-Value innovation does not make sense to a company’s conventional logic.
-Blue ocean strategy may conflict with other companies’ brand image
Natural monopoly: the market often cannot support a second player
-Patents or legal permits block imitation
-High volume leads to rapid cost advantage for the value innovator, discouraging followers from entering the market
-Network externalities discourage imitation
-Imitation often requires significant political, operational and cultural changes
-Companies that value innovate earn brand buzz and a loyal customer following that tends to shun imitators.

If you haven’t read about Blue Ocean vs Six Sigma you can visit Blue Ocean vs Six Sigma

Blue Ocean Strategy Fish in Bowl

Blue Ocean Strategy Fish in Bowl

If your a Marketing Strategist, you might want to read Six Sigma vs blue Ocean Strategy in my previous Post: Blue Ocean vs Six Sigma.

Thanks to Ramonsito Yandall, Kevin Villavicencio, Noel Liboon and John Trio for their report.

Author: bacolodseo

I am a Search Engine Optimization Professional from Bacolod City with a Knack for finding our way to the top of the Search Engines.

2 thoughts on “Applying Blue Ocean Strategy to Architecture and Business Models

  1. Pingback: Bacolod Context: Marketing, Entrepreneurship and Franchising | Archian Speaks in Bacolod and Dubai

  2. Pingback: From Blue Ocean Strategy to Blue Ocean Leadership | CFO Totality

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