Thinking of ways to improve your small business? Or planning to develop your own small business? The article below will discuss what the blue ocean strategy is and how it can help small businesses.
In simple terms, the blue ocean strategy is about creating a new market space and create new demand, capturing untapped market space. Hence, there is no or less competition to this business form. It is based on the belief that boundaries in the market can be constructed by the actions and beliefs of industry players.For example, Cirque du Soleil blended opera and ballet with the circus format without star performers and animals. It creates new demand and a new market in the entertainment industry.https://www.youtube.com/watch?v=x-1-gLv3aWsThe book, Blue Ocean Strategy, is divided into three parts: Framework, Principles, and Implementation.
Blue ocean strategy uses a strategy canvas and four action framework as the key analytical tools. The four action frameworks are used to the trade-off between differentiation and low cost within a company. The four actions framework are:
The second part describes the four principles of blue ocean strategy formulation.
These 4 formulation principles address how an organization can create "blue oceans" by looking across the Six Paths Framework.
source: Kim and Mauborgne
The third and final part describes the two key implementation principles of blue ocean strategy: tipping point leadership and fair process.These implementation principles are essential for leaders to overcome the four key organizational hurdles (cognitive, resource, motivational and political) that can prevent even the best strategies from being executed.
It is argued that blue ocean strategy is more than just a theory. It is a successful attempt for existing brands with highly "sticky" ideas. If you are still thinking of which business you should do, here are some article you may be interested in:
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