Kim and Mauborgne (2004) introduce the concept of ‘Blue Ocean Strategy’ as a method of doing away with all competition. They split the business world into ‘red oceans’ and ‘blue oceans’. A red ocean is an existing and often over crowed market place, where competition is great. A blue ocean is a newly created uncontested market place, which makes all competition irrelevant. When it comes to creating blue oceans, Kim and Mauborgne (2004) believe that successful companies pursue differentiation and low cost strategies simultaneously. However, it could be argued that use the use of the term ‘blue ocean’ is just an elaborate explanation of key concept of marketing; finding a need, satisfying it and regenerating it at a profit. Where the ‘blue ocean’ is the ‘need’ that has not yet been found.
For help in developing your competitive advantage feel free to contact AC&A and discuss it with one of our strategy specialists.
Bibliography
Barney, J., 1991. Firm resources and sustained competitive advantage. Journal of Management. Vol. 17, p99-120
Hay, M. Williamson, P., 1991. The Strategy Handbook. Oxford, Basil Blackwell, p42.
Kim, W. Mauborgne, R., 2004. Blue Ocean Strategy. Harvard Business Review, Oct 2004, p77-84
Rayport, J. Jaworski., 2004. Best Face Forward. Harvard Business Review. Dec 2004, p47-58
About The Author
Ben Haring - BA (HONS) Leisure Marketing
AC&A Senior Account Manager http://www.creativeattitude.org
A specialist in business and management strategy.
