This paper is an attempt to explore the Blue Ocean Strategy which surfaced in the year 2004 and within a few months, it revolutionised thinking patterns and decision making processes of many firms around the world. The terms “red oceans” and “blue oceans” became the part of the business dictionary and many business related journals started using these terms.
It links to the themes of “critical response” and “critical thinking” because the very creation of Blue Ocean Strategy is a challenge or disapproval of the entire field of strategic management, the field of study which has been studied, explored and discussed by many well-known authors over the past five decades and even before that. Where strategic management has been constantly emphasising to outclass the competition, blue ocean strategy cites this approach as short minded and insufficient and instead, preaches the creation of blue oceans to make the competition irrelevant. The reasons why authors of this strategy came up with the blue ocean strategy was because the engaged in the process of critical thinking and critical response and gathered the courage to challenge the mainstream and widely held assumptions about competition. Despite the fact that concepts of innovation and creativity did exist before the advent of blue ocean strategy, Blue Ocean Strategy provided the business and an academic world with a new lens to look at innovation, creativity and value creation (Thompson & Strickland, pp. 314-316, 2003). When as of today, there are many scholars which disagree to the theory as cite it as irrelevant, inconsistent and not having enough theoretical and research grounding. On the other hand, there are scholars who are engaged in the process of defending the theory thus creating an ongoing process of dialogue, critical thinking and critical response. The paper also explores those criticisms and makes an attempt to provide the answers for them.
Inhaltsverzeichnis (Table of Contents)
- INTRODUCTION
- DISCUSSION
- MEANING OF BLUE AND RED OCEANS
- Blue Oceans
- Red Oceans
- BLUE OCEAN STRATEGY
- PORTER FIVE FORCES MODEL AND RED OCEANS
- Threat of Competitive Rivalry in Red Oceans
- Bargaining Power of Customers in Red Oceans
- Bargaining Power of Suppliers in Red Oceans
- Threat of New Entrants in Red Oceans
- Threat of Substitutes in Red Oceans
- STRATEGIC MANAGEMENT – THE FLIP SIDE OF BLUE OCEAN STRATEGY
- CRITICISMS AND MISUNDERSTANDINGS ABOUT BLUE OCEANS
- EXAMPLES OF BLUE OCEAN STRATEGY
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to explore the Blue Ocean Strategy, its impact on business thinking, and the criticisms surrounding it. It examines how the strategy challenges conventional strategic management by advocating for the creation of uncontested market space ("blue oceans") instead of competing in existing markets ("red oceans").
- The contrasting characteristics of "red oceans" (existing markets with intense competition) and "blue oceans" (uncontested market spaces).
- The application of Porter's Five Forces model to illustrate the competitive pressures within red oceans.
- The core tenets of the Blue Ocean Strategy and how it differs from traditional approaches to strategic management.
- Criticisms and misunderstandings about the Blue Ocean Strategy and potential responses to those criticisms.
- Examples of successful Blue Ocean Strategy implementations (although specific examples are not detailed in this preview).
Zusammenfassung der Kapitel (Chapter Summaries)
INTRODUCTION: This introductory section establishes the paper's purpose: to analyze the Blue Ocean Strategy, its revolutionary impact on business decision-making, and the ongoing debate surrounding its validity and applicability. It highlights the strategy's challenge to established strategic management principles by emphasizing the creation of new market spaces instead of competing in saturated markets. The introduction also foreshadows an exploration of criticisms leveled against the Blue Ocean Strategy and attempts to address them.
DISCUSSION: This chapter lays the groundwork by defining the fundamental concepts of "red oceans" and "blue oceans." Red oceans represent existing markets characterized by intense competition, while blue oceans denote uncontested market spaces where new demand is created. The chapter contrasts the strategic approaches appropriate for each type of ocean, highlighting the differences in competition, cost, differentiation, and demand creation.
BLUE OCEAN STRATEGY: This chapter delves into the core principles of the Blue Ocean Strategy. It argues that instead of focusing on beating the competition, businesses should strive to make the competition irrelevant by creating new markets and rules of engagement. The chapter emphasizes the concept of "permanently great strategic moves" as opposed to the fleeting success of companies or industries operating solely within the confines of red oceans.
PORTER FIVE FORCES MODEL AND RED OCEANS: This chapter utilizes Porter's Five Forces model to analyze the competitive landscape of red oceans. By examining the threats of competitive rivalry, bargaining power of suppliers and customers, and the threat of new entrants and substitutes, the chapter demonstrates how these forces often reduce industry profitability. It explores how the increasing globalization and the internet have intensified these competitive pressures in various industries.
STRATEGIC MANAGEMENT – THE FLIP SIDE OF BLUE OCEAN STRATEGY: This chapter (presumed content based on title) likely discusses how Blue Ocean Strategy stands in contrast to traditional strategic management approaches. It probably explores the limitations of solely focusing on outcompeting rivals in existing markets, as opposed to creating entirely new market opportunities.
CRITICISMS AND MISUNDERSTANDINGS ABOUT BLUE OCEANS: This chapter, judging by its title, directly addresses the critiques and misconceptions surrounding the Blue Ocean Strategy. It likely examines common arguments against the strategy's practicality, theoretical foundation, or applicability across various industries and contexts, while possibly providing counterarguments or clarifications.
Schlüsselwörter (Keywords)
Blue Ocean Strategy, Red Ocean Strategy, Competitive Strategy, Strategic Management, Innovation, Value Creation, Porter's Five Forces, Market Creation, Uncontested Market Space, Competitive Advantage, Differentiation, Low Cost.
Blue Ocean Strategy: A Comprehensive Preview - FAQ
What is this document?
This is a comprehensive preview of a paper on Blue Ocean Strategy. It includes the table of contents, objectives and key themes, chapter summaries, and keywords. The preview provides a structured overview of the paper's content, allowing for a thorough understanding of its scope and arguments before accessing the full text.
What is the main topic of the paper?
The paper focuses on Blue Ocean Strategy, exploring its impact on business thinking and the criticisms surrounding it. It contrasts this strategy with traditional approaches, particularly highlighting the creation of uncontested market space ("blue oceans") as opposed to competing in existing markets ("red oceans").
What are "blue oceans" and "red oceans"?
The paper defines "red oceans" as existing markets with intense competition, characterized by high rivalry, limited profitability, and the need to beat the competition. In contrast, "blue oceans" represent uncontested market spaces where new demand is created, allowing for higher profitability and less direct competition.
How does the paper apply Porter's Five Forces?
The paper uses Porter's Five Forces model (threat of new entrants, threat of substitutes, bargaining power of suppliers, bargaining power of buyers, and competitive rivalry) to analyze the competitive pressures within "red oceans," demonstrating how these forces often reduce industry profitability.
What are the key themes explored in the paper?
Key themes include the contrasting characteristics of red and blue oceans, the application of Porter's Five Forces model to red oceans, the core tenets of Blue Ocean Strategy, criticisms and misunderstandings surrounding the strategy, and examples of successful Blue Ocean Strategy implementations.
What are the main criticisms of Blue Ocean Strategy addressed in the paper?
The preview indicates that the paper addresses common criticisms and misconceptions regarding the practicality, theoretical foundation, and applicability of Blue Ocean Strategy across various industries and contexts. Specific criticisms are not detailed in this preview, however.
What are the chapter summaries provided in the preview?
The preview provides summaries for each chapter, including an introduction establishing the paper's purpose, a discussion defining red and blue oceans, a chapter on the core principles of Blue Ocean Strategy, an analysis of Porter's Five Forces in red oceans, a chapter comparing Blue Ocean Strategy to traditional strategic management, and a chapter dedicated to addressing criticisms of the strategy.
What are the key words associated with the paper?
Keywords include Blue Ocean Strategy, Red Ocean Strategy, Competitive Strategy, Strategic Management, Innovation, Value Creation, Porter's Five Forces, Market Creation, Uncontested Market Space, Competitive Advantage, Differentiation, and Low Cost.
What is the overall objective of the paper?
The paper aims to provide a comprehensive analysis of Blue Ocean Strategy, examining its impact on business decision-making and addressing the ongoing debate surrounding its validity and applicability.
Where can I find more information?
This is only a preview. To obtain the full paper and detailed information, you will need to access the complete document from its original source.
- Quote paper
- Aldridge Menzel (Author), 2011, CPLM Blue Ocean Strategy, Munich, GRIN Verlag, https://www.grin.com/document/270839
