Blue Ocean Strategy: Creating Uncontested Market Space and Competitive Advantage
Overview
This paper examines blue ocean strategy as a business theory designed to create uncontested market spaces where competition becomes irrelevant. It explores how businesses can generate new market demand and achieve competitive advantage through innovation rather than competing in existing markets, and introduces the four action framework as a tool for identifying critical success factors.
What this essay covers
- Introduction to blue ocean strategy and its role in business decision-making
- Definition of key terms including focus, divergence, and tagline
- Four action framework developed by Chan Kim and Renee Mauborgne for identifying critical success factors
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Blue Ocean Strategy
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Blue Ocean Strategy
Introduction
Many theories exist in the business world that aim at guiding business individuals and organizations in decision making so that they can remain relevant in the market. The blue ocean strategy is such that theory that has been adopted by millions of business entities in accomplishing their goals and objectives (Carton, 2020). Ideally, the strategy is a theory that is designed to create an uncontested market space which makes competition an irrelevant aspect. Due to the changing business needs in the modern world, entities often look for innovative inputs that can put them in a competitive advantage over others in the same market niches (Carton, 2020). With the blue ocean approach, businesses tend to create new demand in the market and find solutions which is difficult for their competitors to match. Thus, after creating demand, they offer the products or services to satisfy consumer needs (Carton, 2020). Instead of competing for the existing market demand, businesses utilizing this strategy have an objective of expanding the market so that they can benefit more. Research indicates that this strategy has been implemented successfully by millions of businesses that seek to expand their market coverage as well as maintain a long term success in the market.
Definition of Terms
Focus is defined as concentrating on a particular aspect of business with an aim of achieving uncontested advantage over competitors.