29 May, Wednesday
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Proakatemian esseepankki

Blue Ocean Strategy

Kirjoittanut: Nelly Lähteenmäki - tiimistä Revena.

Esseen tyyppi: Yksilöessee / 2 esseepistettä.

Blue Ocean Strategy
W. Chan Kim, Renée Mauborgne
Esseen arvioitu lukuaika on 4 minuuttia.

This fall we had an English course as a compulsory course, for this course we had to read the book in English and make a book review of it. Because book review is a slightly different output when we at the Proakatemia are used to it, we were not able to return it as an essay. However, I took advantage of the situation and I changed my book review a bit and added my own thoughts to turn it to an essay. So here it goes now, here is my first essay in English. Enjoy


The Blue Ocean Strategy is a management book for today’s executives. The blue ocean approach describes how to navigate your company across oceans with less competition and more profit. The writers investigated the impact of innovative ideas on traditional industries and examined case studies, resulting in a highly appealing model of innovation that helps you to rethink how your company competes in today’s market. The book presents rules and concepts for entrepreneurs, managers, CEOs, and directors to follow in order to assist businesses escape the red oceans.


The book describes how competitors are eliminated from the game and lays out the concepts and methods that any corporation may use to build and utilize blue seas.

According to the book, to find the blue sea, you must first understand the difference between the blue sea and the red sea and their purpose. The Red Seas reflect already known markets and pre-existing industries. A market that is already competing and aims to beat competitors on the same track. In a market where industry boundaries have been defined, accepted and the rules of the game of competition are known. Companies are trying to cover up their competitors and capture an even larger share of demand for themselves. As the market becomes congested, the chances of profit and growth decrease. The products become everyday and the bloody competition turns the sea red.

Blue seas refer to all areas that do not yet exist and are not yet known. It is possible to find new blue seas, i.e. markets from existing ones, or to create entirely new ones. The Blue Seas are characterized by untapped market space, the creation of new demand and the potential for highly profitable growth. Competitors in the blue sea are irrelevant because there are no rules of the game in place. Intensifying global competition and increasing supply are generalizing price wars and declining margins. The more similar brands become, the more customers ’purchasing choices are increasingly driven by prices (Copernicus and Market Facts 2001).

Often, the global situation and changes also provide opportunities to take advantage of by developing existing markets. “Most blue seas are created among the red seas by expanding existing industry boundaries” (Kim & Mauborgne, 37). In the early 20th century, mass production of cars was just beginning and the first aircraft flew 37 meters. Twenty years later, there were already millions of cars and the first passenger planes made their arrival. In the 21st century, developments have also been tremendous, especially on the technology side. Computer CRT monitors have changed from big boxes to phones, laptops and virtual reality will enable many things in the future at the level of teaching, learning and practice.

For a business or idea to succeed, it must be constantly evolving. By creating a blue sea and a new market, keeping it blue requires work and strategy. In order to avoid intra-industry competition, it is essential to follow the value curves of the strategy profile. Value curves tell when it’s time to create value innovation and when not. It’s time to head towards the new blue sea as your own curve begins to approach the curves of your competitors. The value curve also prevents a company from looking for new blue seas if the revenue stream of the current product is still huge. By maintaining the development in the already existing blue sea, you make yourself a moving target where you can swim away from the early imitators and let them drown. The goal is to rule the blue sea against imitators for as long as possible.

New blue seas are constantly being created and new innovations are taking over the market space from the old ones. But depending on the industry, continuous development is especially important in areas that are constantly changing. When developing a strategy, it should have a focus and should be clearly visible in the company’s strategic profile, ie value curve. Focuses on specific things, such as friendly and fast service, targeted or wide range, to create special value for the customer through experience or emotion. It’s also especially important to stand out from the crowd today, because if advertising and marketing are the same as everyone else’s, you won’t stand out from the crowd without emphasizing the difference. The company must also take into account extensively all other competitors in its field, but also in those sectors that provide similar services. It must be remembered that products and services may be different and fulfill different functions, but serve the same purpose.

For a business or thought to succeed, it should be continually developing. By making a blue ocean and another market, keeping it blue requires work and methodology. To keep away from intra-industry rivalry, it is fundamental to follow the worth bends of the system profile. Worth bends advise when it’s an ideal opportunity to make esteem development and when not. It’s an ideal opportunity to head towards the new blue ocean as your own bend moves toward the bends of your rivals. The worth bend likewise keeps an organization from searching for new blue oceans if the income stream of the momentum item is as yet gigantic. By keeping up with the improvement in the all around existing blue ocean, you make yourself a moving objective where you can swim away from the early imitators and let them suffocate. The objective is to administer the blue ocean against imitators to the extent that this would be possible.

Literature references
Blue ocean strategy: how to create uncontested market space and make the competition irrelevant. C, Kim. R, Mauborgne. Boston Mass: Harvard Business School Press. 2005.