BLUE OCEAN STRATEGY

1. BLUE OCEAN STRATEGY

2. It promotes creating new market space or Blue Ocean rather than competing in an existing industry. Blue ocean in contrast, denote all the industries not in existence today the unknown market space, untainted by competition

3. . A blue ocean is created when a company achieves value innovation that creates value simultaneously for both the buyer and the company. The innovation in product, service, or delivery must raise and create value for the market, while simultaneously reducing or eliminating features or services that are less valued by the current or future market.

4. In blue oceans, demand is created rather than fought over.

5. Basic tools of Blue Ocean Strategy : • The strategy canvas • The Four Actions framework • Eliminate-Reduce-Raise-Create Grid • The initial litmus test for BOS: focus, divergence, compelling tagline

6. COMPETITION • Definition • Rivalry in which every seller tries to get what other sellers are seeking at the same time: sales, profit, and market share by offering the best practicable combination of price, quality and service. Where the market information flows freely, competition plays a regulatory function in balancing demand and supply