Monday, June 13, 2016

Blue Ocean Strategy - Step One

In the article “Blue Ocean Strategy,” authors W. Chan Kim and Renee Mauborgne recommend creating blue oceans – “uncontested market spaces where the competition is irrelevant.”  They go on to describe how it is possible to seek both differentiation and low cost and bring value without trading off cost.  The idea of Blue Ocean Strategy would be amazing for any company to have, unfortunately the article is vague on how to bring about such amazing results.  While, it listed numerous examples of companies that have succeeded using Blue Ocean Strategy, the article is less prescriptive in how others can go about doing the same.

Then again, anybody would have the same struggle trying to teach others how to be innovative or “think outside the box.”  If I took anything from the article, I learned that creating new markets is not a simple step by step process that can be taught from an instruction manual.  I followed the example of the article and started searching for other companies that found their “blue oceans.”
“Hulu: An Evil Plot to Destroy the World?” by Anita Elberse and Sunil Gupta, describes how a content distributor was able to work with Studios and Production companies and launch an online service that provided free content for users by utilizing revenue from advertisers.

In another article, “Cisco’s Vision: A Smart+Connected World,” Patrick Kelly mentioned how Cisco was “the first mover and leader in high-definition (HD) videoconference technology,” which reduced the need to travel while at the same time improving business continuity and increasing employee productivity.  

It wasn't easy for either companies to do, but both companies found their own unique way to create new market spaces.

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