Blue ocean strategy is a business strategy framework introduced by W. Chan Kim and Renee Mauborgne in their 2005 book Blue Ocean Strategy, which contrasts competing in existing, crowded markets, described as red oceans, with creating new, uncontested market space, described as blue oceans, where competition is rendered largely irrelevant. The framework encourages companies to pursue value innovation, simultaneously reducing costs and increasing value for buyers, rather than choosing between the differentiation and low-cost strategies that dominate conventional competitive strategy. It has been widely adopted in business strategy teaching and consulting as an alternative to strategies premised on outcompeting rivals within an already defined industry.
Facts
Core ClaimBlue Ocean Strategy holds that companies grow by creating uncontested new market space, called a blue ocean, rather than competing head to head in existing, crowded markets. 1 Classification
Topic (Functional Area) Connections
Associated With
Source Wikipedia, Blue Ocean Strategy
Blue Ocean Strategy is positioned by its authors as an alternative to Porter's competition-based generic strategies.
Source Wikipedia, Blue Ocean Strategy
Critiqued Here
Kim and Mauborgne present Blue Ocean Strategy explicitly as an alternative to Porter competitive, five-forces style strategy.
Sources
1. Wikipedia, Blue Ocean Strategy
WikipediaWikipedia, Blue Ocean Strategy lead section
Blue Ocean Strategy is a book published in 2005 written by W. Chan Kim and Renée Mauborgne, professors at INSEAD, and the name of the marketing theory detailed in the book.
Introduction, functional area topic classification
Blue Ocean Strategy is a book published in 2005 written by W.
- Associated With: Porter's Generic Strategies
- Associated With: Entrepreneurship
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