IBM BLUE OCEAN STRATEGY

IBM Innovation blue ocean strategy



IBM Innovation Blue Ocean Strategy

Introduction

International Business Machines Corporation (IBM) is a US based IT Company engaged in the production and sale of computer hardware and software. It offers infrastructure services, hosting services, and consulting services. The company's product line includes servers and systems, software, disk systems, hard drives/micro drives, network attached storage, semiconductors, printing paper and toner, blade center workstation and accessories. It also offers a wide portfolio of IT services including consulting, application services, outsourcing, training, small and medium business services, and related services.

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 concepts, principles and implementation, in the form of blue ocean strategy for IBM (Kim, & Mauborgne, ...