Blue Ocean Strategy
Introduction • Our marketplace is completely crowded. • And daily competition can jeopardize our plans for the creation of new ideas.
Introduction • Nowadays we don’t have time to think about new possibilities and alternatives to expand our business.
BOS Strategy • Blue Ocean Strategy is a business strategy book that promotes a systematic approach for making the competition irrelevant.
BOS – Key Idea • The authors have established a business metaphor to describe the market universe: – The Red Ocean. – The Blue Ocean.
Red Ocean - Definition • Red oceans are all the industries in existence today - the known market space.
Red Ocean - Features • The industry boundaries are defined and accepted. • The competitive rules of the game are known. • Companies try to outperform their rivals to grab a greater share of product or service demand.
Red Ocean - Problems • As the market space gets crowded, prospects for profits and growth are reduced. • Products become commodities or niche, and cutthroat competition turns the red ocean bloody.
Blue Ocean - Definition • Blue oceans, in contrast, denote all the industries not in existence today the unknown market space, untainted by competition.
Blue Ocean - Important • In blue oceans, demand is created rather than fought over. • There is ample opportunity for growth that is both profitable and rapid.
Blue Ocean - Important • In blue oceans, competition is irrelevant because the rules of the game are waiting to be set.
Corner-Stone • The corner-stone of Blue Ocean Strategy is 'Value Innovation'. • A blue ocean is created when a company achieves value innovation that creates value simultaneously for both the buyer and the company.
Important • This metaphor can be powerful enough to stimulate people to action. • However, the concepts behind the Blue Ocean Strategy are not new. • Many of these tools are also used by Six Sigma practitioners and proposed by other management gurus.
Lico Reis Consultoria & Línguas Prof. Roberto Lico Reis www.licoreis.com
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