Thursday, February 22, 2007

13. Blue Ocean Strategy (W. Chan Kim & Renée Mauborgne)

W. Chan Kim and Renée Mauborgne use the terms Red and Blue Oceans to denote the market universe. They claim that a Blue Ocean Strategy is a way to make the competition irrelevant by creating a leap in value for both the company and its customers; it is a market creating strategy. In Blue Oceans, competition is transcended because the rules of the game of a new market are waiting to be set.
"Blue Ocean" and "Red Ocean" © 070422, Distrifina SA


Red Oceans are all the industries in existence today – the kno
wn 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 existing demand. As the market space gets crowded, prospects for profits and growth are reduced. Products become commodities, and cutthroat competition turns the red ocean bloody. Hence, the term “Red” Oceans.

About the Blue Ocean Strategy. Visit the Blue Ocean Strategy web site.


Study for painting 13-M-6 "Blue Ocean" © 070222, Distrifina SA
Study for painting 14-M-6 "Red Ocean" © 070222, Distrifina SA

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