Blue Ocean Strategy

Blue Ocean Strategy

Introduction

The concept of blue ocean strategy is described as 'creating uncontested market spaces by inventing and capturing new demand through a leap in value while also streamlining costs' (Kim & Mauborgne, 2007). Blue ocean strategy has been compared with the red ocean strategy which focuses beating the competition in the already existing markets. In blue ocean strategy, a company dives to create differentiation, value and cost leadership.

There are two misconceptions about the blue ocean strategy and how it should be implemented. Firstly, developing and introducing new technology is not the only way of entering a blue ...