Article: Blue ocean strategy Introduction: Blue ocean strategy (BOS) is the strategy which doesnt focuses on to beat

the competitors, in fact it focuses on making it irrelevant by creating uncontested market spaces.BOS is a strategic alignment of value, profit and people prepositions to systematically maximize opportunities and minimizing risk involvements. It covers the both strategy formulation and strategy execution. The three conceptual building blocks of blue ocean strategy are: value, innovation and tipping point leadership and fair process. Finally it is the company compete for customer and creates the new market space so that company can capitalize the market. Value Innovation: Value innovation is created in the region where a companys actions favorably affect both its cost structure and its value proposition to buyers. Cost savings are made by eliminating and reducing the factors an industry competes on. Buyer value is lifted by raising and creating elements the industry has never offered. Red ocean versus Blue Ocean: In the red ocean, differentiation costs because firms compete with the same best-practice principle. Here, the strategic choices for firms are to pursue either differentiation or low cost. In the Reconstructionist world, however, the strategic aim is to create new best-practice rules by breaking the existing value-cost trade-off and thereby creating blue The six principles of blue ocean strategy: The six principles driving the successful formulation and execution of blue ocean strategy and the risks that these principles attenuate. 1. 2. 3. 4. 5. 6. Reconstruct market boundaries Focus on the big picture, not the numbers Reach beyond existing demand Get the strategic sequence right Overcome key organizational hurdles Build execution into strategy

Strategy Canvas: The strategy canvas is both a diagnostic and an action framework for building a compelling blue ocean strategy. It captures the current state of play in the known market space. This allows you to understand where the competition is currently investing, the factors the industry currently competes on in products, service, and delivery, and what customers receive from the existing competitive offerings on the market. Four Actions Framework: The four actions framework offers an technique that breaks the trade-off between differentiation and low cost and to create a new value curve. It answers the four key questions of what industry takes for granted and needs to be eliminated; what factors need to be reduced below industry standards; what factors need to be raised above industry standards; and what should be created that the industry has never offered. In conclusion BOS makes the firm moving from Productivity Management to Creativity Management to achieve sustainable profitable growth in the future and to make competition irrelevant for your organization.

Article on Blue ocean strategy

By Vinayak Joshi Mba iup Cohort B @02658208