Tuesday, April 7, 2009

BLue Ocean Strategy (BOS)


Red: Compete in existing market

Blue: Create uncontested market

Red: The industry structure conditions are given and firms are forced to compete within them

Blue: Market boundaries and industries can be reconstructed by the actions and beliefs in industry players

Red: Beat the competition

Blue: Make the competition irrelevant

Red: Make the value/cost trade off

Blue: Break the value/cost trade off

Red: Align the whole company's activities with its strategic choice of differentiation OR low cost

Blue: Align the whole company's activities in pursuit of differentiation AND low cost


For those who understand Chinese, think of the idiom that taught us

寧為小廟住持, 莫為大廟撞鐘.


Doesn't that sound familiar ?


Well, still do not quite understand what is BOS?


Here is a specific example.

Toyota broke away from the middle class brand image by introducing Lexus for up-market. It is now claimed eating into Mercedes Benz market and car enthusiasts are comparing Mercedes and Lexus

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