Blue Ocean Study

What is obscure marine come forthline? by Nattida Sae-Iw MBA Student What is Blue sea dodging? Lets start with the metaphors To understand the verge of Blue Ocean, imagine a market introduction composed of two sorts of oceans blood-red Oceans and Blue Oceans. Red Oceans represent the existing market space which is cognize market. Companies in red oceans atomic number 18 competitive-base they are bit each other and aim to get a large market share from their competitors. The world instantaneously is globalized, the contentions are fiercer than ever, they are battling on the same take thus this is bloody competition.Thats why its c aloneed red oceans. Blue Oceans are naked as a jaybird, defined as unknown market space. In blue oceans, competition is irrelevant because the rules of the game are waiting to be set. Blue oceans are the opportunity for loftyly lucrative growth. The space is newfangled, no battle so its clear market, thats why this is called Blue Ocean. prod uctiveness ManagementCreativity Management Companies are always successful in the red ocean. How many companies tend to follow the payfulness side of the diagram? Most of companies are assistance to follow the left side as thats normal practice and easier.The right side is a take chances taking and companies are trying to repeal it. The red ocean is always matter and is a fact of job life. However, with exceeding need and much competitors, companies need to go beyond competing. To grow business opportunity, the companies need to draw blue oceans. Unfortunately, blue oceans are uncharted and large. Without guideline and frameworks to create blue oceans is seen to be lay on the liney. Therefore, there are some methodologies to help on how to create them. According to the article, it can be summarized that the introductory structure of creating blue oceans are as follows pore on Future, answer yourself with these questions whether you are ready to create blue oceans. Simple questions you need to challenge you are really blue color. How Blue is your strategy 1. Creating new demand instead of striving to do kick downstairs than competitors 2. Looking for non-customers instead of getting a bigger share of customers 3. Challenging assumptions and reconstructing attention 4. Voluntary active self- initiated teams 5. Executing strategies while conserving time and resources Strategies Canvas get hold of both circulating(prenominal) state and also demand side of alternatives 1.Do dimension on graph hold dear factors that are important, what your fabrication focuses on. Graph the company indeed graph for your own 2. Look at the frameworks 3. canvass to answer 4 questions (New value curve) and review what does the industry curve look like? And what does your companys curve look like? Then put on four actions frameworks to build a winning strategy. sink Which factors should be reduced salutary below the industrys standard? Eliminate Which of the f actors that the industry takes for apt(p) should be eliminated? Raise Which factors should be raised well above the industrys standard? defecate Which factors should be created that the industry has never offered? Blue Ocean is non about taking risk and also not avoiding risk. Its maximizing opportunities and minimizing risks. Blue Ocean focuses on six different risks that are associated with formulations strategy. o Search risk How you follow up with the right idea? o Planning risk non just let strategic tools store in document shelf. Create a big word picture and guess it visualized. o Scale risk To make sure you are going out to the ocean, not just a pool and try to pertain beyond existing demand. Business model risk Get the strategic sequence right o Organizational risk Strategy must come together with good resources. o Management risk Motivation which is associated with peoples attitudes and behaviors. 4. Execute by and by lying out the tools and frameworks in th e formulation and past motivating people to act on and guide a blue ocean strategy. In short, Blue Ocean is about changing in what current industries believe, and create new value to serve customers, thats called Value Innovation.Focusing on non-customers and find out why they are non-customers then provide high value to them and change them from non-customers to be your customers (Create and capture new demand). Besides, the creation of Blue Ocean is about drive prices structure down while driving value up for buyers. This systematic process is all about Blue Ocean point of view. Managing cost Quality Control Assets Utilization Operational power Growth/ Innovation Creativity methods New set Development Global Reach