I had come across many who say, LG uses Blue Ocean Strategy. Can u please feed some more info on this aspect of Blue Ocean Strategy?

Ishika.

Hi Ishika,

how u doing good.. well yes ! LG uses Blue Ocean Strategy as part of its strategic activities... let me try to explain :

LG adopted its BOS in India as part of its global strategy.

Setting up ambitious growth targets for both profit and revenues and BOS provides the blueprint for the achievement.

LG feels “Indian customers are very sensible and closely consider the product attributes before purchase, so real product distinction is very important ”

Areas LG Covered:
Consumer Electronics
Home Appliances
IT
GSM




ALL THIS TO DOUBLE WORLDWIDE SALES BY 2010


LG Covered following Areas as part of Blue Ocean Initiative:

PRODUCT
BUSINESS MODEL-Blue Ocean business model
WORK- Blue Ocean Work
SYSTEN and HUMAN RESOURCES




I will post an article soon on this ... Keep posting ur queries on Strategies.

Cheers,

one of the best example of company who is using and following the Blue ocean strategy is Air asia , an airliner from Malaysia

Air Asia have managed to avoid the red ocean (compete with Malaysia Airline and regional airline such as Tiger Air, Jet Air etc) by looking into the factors that industry take for granted and also factors that important to customers. With the Four Actions Framework proposed by Blue Ocean Strategy authors, Air Asia have implemented many strategic move to ensure they are making Malaysia Airline and regional airline company irrelevant.

Blue Ocean is innovation to a great extent (innovation on new market place where comp. is not active) Because established markets are Saturated, hence head-to-head competition can not bring attractive returns. The author’s language of “creating” strategy, rather than the more traditional approaches to strategy development, sets the tone for the entire book A must read .

hi ..
see ,

“value without innovation tends to focus more on VALUE creation in an incremental scale”

While value with innovation occurs only when the company’s align innovation with value, utility, price and cost positioning.


cheers,

drypen

Blue Ocean Strategy is a business strategy book written by and of at INSEAD, the second largest business school in the world

Red Ocean is a 2007 first-person shooter computer game created by Collision Studios.