Blue Ocean Strategy
By W. Chan Kim and Renée Mauborgne
1. What are the key issues addressed in the article?
Many companies are confining themselves in the overcrowded industries. With that confinement there is no way to sustain high performance. The real opportunity is to create blue ocean market that are uncontested and without competitors.
The business universe consists of two distinct kinds of spaces including red oceans and blue oceans. While red oceans represent all the industries in existence today the known markets, blue oceans denote all the industries not in existence. Red ocean markets are defined with clear boundaries and well understood competitive rules. Blue oceans provide another scenario. They are untainted by competition. In blue oceans, the demand usually is created rather than fought over.
There are two ways to create blue oceans. Companies can give rise to completely new industries with the example of eBay in the online auction. Or a blue ocean is......
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Approximate Word Count: 938
Approximate Pages: 4 (260 words per double-spaced page) |