Blue Ocean Strategy

Dear Students,

Dr. Sarah Layton has aptly described the titled topic in the book: Blue Ocean Strategy: How to create uncontested market space and make the competition irrelevant, by Chan Kim and Renee Mauborgne.

What does Blue Ocean Strategy mean ?

Succinctly,

• Blue Ocean Strategy creates uncontested market space in contrast to Red Ocean Strategy which strives to compete in the existing market space.
• Blue Ocean Strategy makes competition irrelevant as against Red Ocean Strategy which attempts to beat the competition.
• Blue Ocean Strategy creates and captures new demand whereas Red Ocean Strategy exploits existing demand.
• Blue Ocean Strategy breaks the value-cost trade-off while Red Ocean Strategy makes the value-cost trade-off.
• Blue Ocean Strategy aligns the whole system of a firm's activities in pursuit of differentiation and low cost compared to Red Ocean Strategy which aligns the whole system of a firm's activities with its strategic choice of differentiation or low cost.

Obviously then, the ideal would be to conceive a Blue Ocean Strategy.

With best wishes,

Prof.D.P.Chattopadhyay

(Globsyn Business School)