HI can any one tell me what is Blue Ocean Strategy? What is Read Ocean and whats blue Ocean?

ishika wrote:

QUOTE:
HI can any one tell me what is Blue Ocean Strategy? What is Read Ocean and whats blue Ocean?

Blue Ocean strategy is a way of innovating a new market and making competition irrelevant.
BOS is an Area of:

1.High profit growth at low risk
2.Industries not in existence today (thats where u innovate and make competition irrelevant.)
3.Untapped market demand
4.Unknown market space


Cheers,<br><br>Post edited by: raman, at: 2008/06/19 22:15

The metaphor of red and blue oceans describes the market universe. Red oceans are all the industries in existence today—the known market space. In the red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known. Here companies try to outperform their rivals to grab a greater share of product or service demand. As the market space gets crowded, prospects for profits and growth are reduced. Products become commodities or niche, and cutthroat competition turns the red ocean bloody. Hence, the term red oceans.

Blue oceans, in contrast, denote all the industries not in existence today—the unknown market space, untainted by competition. In blue oceans, demand is created rather than fought over. There is ample opportunity for growth that is both profitable and rapid. In blue oceans, competition is irrelevant because the rules of the game are waiting to be set. Blue ocean is an analogy to describe the wider, deeper potential of market space that is not yet explored.

drypen.

hey ,

but don't you fee in order to innovate a market that is not yet tapped its really important to have a very unique business ability ? coz, if thats not there again some one else would enter this so called innovative market?

Its like may be technology can be one area that makes the difference to such an extent that we can stop competition from entering that to to some extent.?

what other ares can make a difference? and what kinna innovation can make a new market?

ishika.

ishika wrote:

QUOTE:
hey ,

but don't you fee in order to innovate a market that is not yet tapped its really important to have a very unique business ability ? coz, if thats not there again some one else would enter this so called innovative market?

Its like may be technology can be one area that makes the difference to such an extent that we can stop competition from entering that to to some extent.?

what other ares can make a difference? and what kinna innovation can make a new market?

ishika.

hi ishika ,

I agree to what u said , see the idea of innovation here is &quot;Value innovation&quot; its a way of generating value to the prospect customers which provides an edge to the business.

Yes technology is one of the best way to differentiate but then it should be a product or service thats not yet being provided. Technology will add value in a way that as the technology is not known yet or may be patent its difficult for competition to jump into this business.

till then the business enjoys say &quot;first move advantage?&quot;

I am looking forward to post some examples on this topic in this forum .

you should read - &quot; Blue Ocean Strategies &quot; A must read !

Cheers.