Blue Ocean Strategy

Description

Blue Ocean Strategies (BOS) denote strategies that result in the creation of new markets. Red oceans represent markets where incumbents’ Red Ocean Strategies (ROS) are fairly similar and rivals are battling over a shrinking profit pool. Blue oceans are new markets where BOS, in the form of value innovation, create powerful leaps in value for both the firm and its buyers, thereby rendering rivals obsolete and giving rise to new demand.

+ Comprensive model of strategy formulation that creates barriers to imitation and leads to higher returns than Red Ocean Strategies strategies.

– Model focuses more on formulation than implementation.

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