ï»¿CHAPTER -1 (SUMMARY)
This is the first chapter of Blue Ocean Strategy. This book is written by Professor W. Chan Kim and Renee Mauborgne in 2005 from Harvard Business School. They research for around over 20 years and sum up a theory of Blue Ocean. The terms Blue Ocean and Red Ocean are:
Red Ocean Strategy
Blue Ocean Strategy
Compete in exiting market space
Create uncontested market space
Beat the competition
Make the competition irrelevant
Exploit exiting demand
Create and capture new demand
Make the value cost trade off
Break the value cost trade off
Align the whole system of a firmâ€™s activities with its strategic choice of differentiation or low cost.
Align the ...view middle of the document...
It is essential to focus on the red ocean, so that to know the key constraining factors of the business/ market to pave away for the uncontested blue ocean. By creating Blue Ocean you make people think like to have the product which was once preferred by the masses such as tide and even now people wonâ€™t look for it as there is a trend that brands are now becoming similar and people now do select brands the basis of price. So to view and understand Blue Ocean we must discuss the strategic moves of the companies these strategic moves are defined as a set of managerial actions and decisions involved in making new market space. By the use of the strategic moves one can reconstruct and take these companies out of the red ocean and develop a pattern by which blue ocean is created and high-performance is achieved. Those who created Blue Ocean focused on the value innovation; value innovation makes the competition irrelevant by creating a leap in value for buyers and yourÂ companies which creates an uncontested market space. Value innovation can be valued when companies align innovation with utility, price and cost positions. To better understand one should follow the footsteps of cirque du solei in order to create Blue Ocean. They made the concept of circus looked more diverse by introduction of different acts which were never part
Summary of Chapter (5)
In this chapter, Professor W. Chan Kim introduces the way to maximize the size of the blue ocean. In order to achieve this result, you need to focus on the existing customer. Besides, you need to drive for finer segmentation to accommodate buyer differences. The managers should lead to finer segmentation and greater tailoring of offerings to better meet customer preferences. Those customers are non customers segment and they can create huge demand and sales volume to the business. Professor W. Chan Kim indicates the managers should study the buyersâ€™ behavior. File up those non customers into 3 different types. Aggregate new demand and unlock those 3 type non customers.
(5)Describe Bangladeshi Company that has applies blue ocean strategy successfully?
Blue Ocean StrategyÂ is about how to create uncontested market space and make the competition irrelevant.Â In this three day â€œaction learningâ€ course delegate will learn the advanced application of Blue Ocean Strategy Value Innovation tools, methodologies, and frameworks. Participants will gain an in-depth understanding of how to apply the tools and methodologies to break through conventional competitive strategic thinking.
Daffodil group a renewal well know group in Bangladesh follow blue ocean strategy. It create new market and creating new opportunity. Daffodil group creating its own market. Daffodil group built daffodil International University, daffodil International school and college, Daffodil software, Daffodil institution of IT, Daffodil Clinic ,...