BLUE OCEAN STRATEGY

BMW (Blue Ocean Strategy) and Final Strategy Plan

BMW (Blue Ocean Strategy) and Final Strategy Plan

Introduction

Strategy has become the central focus in management literature and the business world for the past few decades. The strategic plan is a formal document that attempts to capture the part of those responsible for a company (directors, managers, entrepreneurs), which will be the same strategy for a period of time, usually 3 to 5 years. However, the strategic plan is quantitative: the figures set to be achieved by the company's manifesto describe how to obtain them, outlining the strategy to follow, and time: indicates the timing of the disposal of the company to achieve these figures (Stacey, 1993).

Blue Ocean Strategy (BOS) is one of the latest business concepts in the world. It was established fairly recently, but immediately gained recognition among experts and CEOs and directors of many companies. The concept of BOS is based on the statement and states that do not fight with the competition issues that it becomes irrelevant. Trusting the old principle, which says that the simplest solutions are the most effective as a training company quickly became advocates of this strategy and have decided to present it to a wider audience of managers.

For a long time, companies are trying to beat the competition to give the same products and services in a more efficient manner. It is a road that quickly leads to hyper and mutual destruction. Only through a sustained strategy to distinguish from the opponents, we can lay the foundations for future success. The solution, for which the authors postulate the Blue Ocean Strategy - Chan Kim and Renée Mauborgne is the failure to combat competitors and focus on new, yet undiscovered market space. However, there are no perfect companies, according to various people, but are strategic moves close to the ideal of a business, and Blue Ocean Strategy is a tool for creating them closer to a perfect company (Pitta, 2009).

Blue Ocean space markets that are not yet discovered, customers who do not know us yet, and competitors are left far behind. In this space, as agreed by Chan Kim and Renée Mauborgne. There is no room for rivalry, as we set the rules of the game. Interestingly, the blue oceans can also explore an industry that is already saturated. It is the cornerstone of Blue Ocean Strategy. The figure below illustrates the difference between these two spaces (Kim, & Mauborgne, 2005a).

Unlike what is commonly supposed, the best strategy to drive out competition is not to compete directly with this, but, instead, stop competing. Thus, instead of trying to beat the competition in order to obtain a portion of an existing market ("Red Ocean"), it is best to seek a "blue ocean", i.e. a virgin market that nobody has touched and has the potential to grow. In red oceans, competition makes the rules, in blue oceans, competition is irrelevant. However, in this paper, we present the rudiments of the "blue ocean strategy": fundamental ...