Premium Essay

Blue Ocean Summary

In: Business and Management

Submitted By scsh
Words 2790
Pages 12
Contents: 1 Introduction

2 Frameworks and analytics for Blue Ocean Strategy * Strategy Canvas * The Four Actions Framework * Eliminate- Reduce- Raise- Create Grid * Pioneer-Migrator-Settler Map * Buyer utility Map * Three Tiers of Noncustomers * Sequence of the Blue Ocean Strategy 3 Conclusion

4 Appendix

Introduction:
Due to the rapid development of logistic, communication tools, the world has become ‘smaller’ and ‘flatter’ than ever. Instead of competing with the local firms, nowadays companies would have to compete in the global environment. The entry and trade barriers for most of the market have been eliminated due to the regulations and the growth of technology. Here, the concept of ‘Blue Oceans’ comes into place.

We can imagine a market universe consisted of two sorts of oceans: Red oceans and blue Oceans. Red oceans represent all the existed industries and market nowadays. In the red oceans, industry boundaries and standard are well defined and accepted, the formation and situation of the market can be understand and work out easily. The accelerated technological advances and the trend toward globalization have substantially improved industrial productivity and have enabled suppliers to produce an array of products and services, which lead to the supply exceeds demand. Due to the removal of trade barriers between nations and regions, the information on products and prices become more globally available. As a result, markets for monopoly and niche also start to disappear.

The level of competition is high since competitors and outsiders have the ability and knowledge of entering the market. Here, companies try to outperform their rivals to gain an increased market share of existing customers. As the number of players in the market increased, so as the market demand is saturated, the prospects for…...

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