Blue Ocean Strategy is a technique that challenges what you think and zanli about achieving strategic success of your business
Blue Ocean Strategy - BOS - the result of a decade of studying 150 different companies strategic steps that have been made in more than 30 industries over 100 years (1880 - 2000). Based on these studies W. Chan Kim and Renée Mauborgne wrote a book «Blue Ocean Strategy. How to Create Uncontested Market Space and Make the Competition Irrelevant »(Harvard Business School Press; February 3, 2005).
BOS - is a strategy that allows you to differentiate and at minimal cost. The purpose of Blue Ocean Strategy - do not beat the competition in the existing industry, but to create a new market niche or "blue ocean", avoiding direct competition. BOS offers a set of methods and tools allowing you to create a new market.
In the traditional approach, innovation is conceived as a random experimental processes of business where entrepreneurship and "random" creativity are key factors. Blue ocean strategy, by contrast, offers a systematic approach and reproducible set of methodologies and procedures for the creation of innovative products for both new companies and existing companies.
BOSS will immerse your course participants in a blue ocean strategic mindset, so they can successfully move from a highly competitive Red Ocean to a Blue Ocean of new market space.
The Key Lessons covered throughout a BOSS exercise are the following:
- Forget about positioning as you knew it: Strategy should go beyond positioning within the existing industry’s structural conditions.
- Think of strategy as reconstruction – growing the industry and growing demand.
- The Six Paths reveal ways to reconstruct market boundaries and open up avenues to noncustomers which, if nurtured, will allow an organization to create and capture new demand, consequently generating high growth.
- You can achieve high growth in an existing Red Ocean industry by creating a Blue Ocean.
- Desegment markets rather than segment them.
- Reach out to noncustomers rather than just to the industry’s existing customers.
- Searching for commonalities across noncustomer groups will allow organizations to see how to capture the largest share of noncustomers.
- Pursue both differentiation and low cost.
- Organizations can achieve both differentiation and low cost, which are no longer tradeoffs, by reconstructing market boundaries and focusing on the four actions framework of Eliminating, Reducing, Raising and Creating.
- Strategic price to unlock early demand and keep competitors at bay.
- The importance of strategic pricing and price corridor of the mass is highlighted. There are many cases in which the failure to price strategically has led to locked demand and lack of pressure on new entrants and competitors to lower their cost structures.
- Blue Oceans can become Red. Strive for a Blue Ocean as competitors imitate.
- Companies have the option to create Blue Oceans in services and distribution and not only with their products, as most organizations still believe to this day. They can rotate the creation of Blue Oceans between Products, Services and Delivery Platforms. Most organizations limit their strategic options by focusing on only one dimension of strategy.
- Dramatic profit growth depends primarily on the strategic move. There are no permanently excellent organizations. They are only as good as their strategic moves.
Innovativeness, engagement and high efficiency of training
Computer business simulation Blue Ocean Strategy (BOSS), developed by the French company StratX with the participation of professors, business school INSEAD, aimed at developing the abilities of strategic thinking and team building. It also helps to develop the skills necessary to implement the Blue Ocean Strategy in the companies participants. In the course of learning and playing BOSS participants work in teams to run for a 6-year period in the market of consumer electronics. Wednesday simulation allows them to avoid direct competition and to create a "blue ocean" of a new market for their companies. Based on visual examination of the markets and the Six Paths Framework approach, participants can change the boundaries of markets, using the tools of Blue Ocean Strategy: Strategic canvas (strategy canvas), the curve values (value curve), four-step algorithm for creating new value (four actions framework), the matrix ERRC and others.