Blue ocean strategy Interesting Essay Topic Ideas

Blue Ocean Strategy is a type of business strategy developed by professors W Chan Kim and Renée Mauborgne of INSEAD. This strategy is used to help organizations create new markets, or “blue oceans”, by realizing a high level of differentiation and low cost at the same time. The aim is to create markets uncontested by competitors, and to achieve high profitability in the long-term. The four principles of Blue Ocean Strategy are: 1) Focus on value-creation, 2) Focus on the big picture, 3) Reach beyond existing demand, and 4) Get the strategic sequence right. The strategy is an alternative to traditional competitive strategies such as “red ocean” strategies and Michael Porter’s five forces model. One of the most successful companies to have employed the Blue Ocean Strategy is Apple. The company did not compete with its competitors in terms of hardware and software quality, but instead sought to create an innovative, user-friendly experience. By introducing the iPod in 2001, Apple was able to create a new market in digital music. They further capitalized on this by creating the iTunes Store to facilitate digital music downloads and the App Store to offer mobile applications. Another example is Starbucks, who created a new market by transforming a commodity (coffee) into a lifestyle brand. This was done by providing an experience that exceeded people’s expectations for good coffee. The Blue Ocean Strategy has also been employed by other successful companies, such as Amazon, Uber, and Airbnb. Amazon focused on creating a seamless shopping experience for customers by offering an extensive selection of items, fast shipping, and a convenient shopping platform. Uber and Airbnb have also used the Blue Ocean Strategy to create new markets. Uber offered a convenient and cost-effective solution to the traditional taxi industry, while Airbnb provided an alternative to traditional hotel accommodations. In conclusion, the Blue Ocean Strategy is an effective business strategy that has been used by some of the world’s most successful companies to create new markets and achieve long-term profitability. It is a valuable tool for companies looking to stand out from their competitors and create unique value for their customers.