Team 3 Blue Ocean Strategy Chapter 1. Introduction Strategy? -A company’s chosen business plan Two kinds of Strategy - Red Ocean - Blue Ocean. RED OCEANS. Existing industries AKA Known Markets Cut-throat and competitive Companies fighting over limited demand in market
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It is evident that total profits from blue oceans are much greater than those of red oceans line extensions.
-Strategy will always involve both opportunity and risk
-In our current playing field, there is an unbalanced favor for conducting business in red oceans
-As long as this remains true, red oceans will continue to dominate even though there is an imperative for creating blue oceans
-Blue Ocean Strategy seeks to dismantle this current imbalance between red and blue oceans strategy
The Six Principles of Blue Ocean Strategy:
-Formulation principles: -Risk factor each principle satisfies:
Reconstruct market boundaries Search risk
Focus on the big picture Planning risk
Reach beyond existing demand Scale risk
Get the strategic sequence right Business model risk
Overcome key org. hurdles Organizational risk
Build execution into strategy Management risk