Analysis of Blue Ocean Strategy Essay

Analysis of Blue Ocean Strategy

The blue ocean strategy is a strategy to create uncontested market space. The blue ocean is the unknown market space where there is no competition. It focuses on creating and capturing the demand, rather than exploiting the existing one. It can be thought of a business model where the company pursues differentiation and low cost production. In contrast, is the red ocean strategy which signifies the market place where everyone competes, and focuses on rivalry and competition, rather than creating value.

I believe that the blue ocean strategy is a valuable concept for our company as it gives a different metaphor to emphasize the importance of value creation. I believe that the ‘meaning’ of the article is exceptional value creation and innovation. In many of the mature industries it has been seen that companies forget to create value for their customers, and just focus on rivalry and beating the competition in the market through advertising and low prices. They are number driven which blinds them from the big picture. Then, there comes a company that refocuses on the customer and becomes a hit. For example, Southwest didn’t directly compete with Jet Blue, because it knew it would lose. Instead, it created a whole new business model that just focused on what the customers wanted, and eliminated all the unnecessary perks. (Kim & Mauborgne, 2004)

Another valuable lesson for our company is that we shouldn’t be afraid to challenge the defined boundaries of the competition. Like Cirque du Soleil, we shouldn’t be afraid to redefine the competition, and alter the way we offer services or do things.

To create a blue ocean for our company, I believe we should firstly stop benchmarking ourselves to the competition. Secondly, we should brainstorm on the ways we can provide better value to our customer. Moreover, we should think of new target markets, which have not already been targeted by other companies. By looking at non-customers, we might have to change our business model, product or services. Lastly, we should be prepared to break from the red ocean and start swimming in the blue ocean. It will benefit us by giving us endless new possibilities. (Kim & Mauborgne, 2004)

This theory is that it is a repetition on the emphasis on innovation and value creation. In all the management strategy articles I’ve read, nearly all of them emphasize on innovation, and value creation. In the end, it’s all about providing the customer what he wants. What differentiates it from other management strategy concepts is that, unlike other, it suggests a pattern through which innovation creates new markets. The blue ocean strategy can also be related to the concept of niche marketing. (Niciejewska & Dimitrov, 2009)

I don’t agree with its proposition that blue ocean strategy eliminated competition. I believe that competition can never be eliminated. If we manage to create a profitable blue ocean, there is no reason that other companies will not follow. They might not follow the exact same strategy, but they’ll surely try to make use of the demand we’ve managed to create. Furthermore, I believe that competition is a good thing, while this article seems to suggest that it’s bad. I believe that competition keeps the organization in check, and pushes it to provide better value to the customer. (Niciejewska & Dimitrov, 2009)

Lastly, I would like to point out that due to the rapid globalization, and low-cost technology available, it’s now possible for every company to create blue oceans. We just need the right mindset to provide our customers value through innovation.


Kim, W. C., & Mauborgne, R. (2004). Blue Ocean Strategy. Harvard Business Review, 82(10), 76-84. Retrieved July 8, 2010, from

Niciejewska, K., & Dimitrov, D. (2009). Blue Ocean Strategy: INSEAD School. Munich: GRIN Verlag.

TRU Group – Blue Ocean Strategy White Paper Critique. (n.d.). TRU Group Inc. Retrieved July 9, 2010, from