Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant, that title explains well what the author the exactly is going to talk about in this book. There are two different categories in business markets which are called red ocean and blue ocean. According to the book, “Red oceans represent all the industries in existence today. This is the known market space, but it is not a completely new market. Blue oceans denote all the industries not in existence today. This is the unknown market space” (4). Blue ocean strategy is to create a new market. They use Cirque du Soleil as an example of blue ocean strategy. Cirque du Soleil is a circus but not the exactly same circus which we’ve known such as using animals
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They explain about the tools and frameworks of blue ocean strategy divided to several principals. First, the strategy canvas is to understand your current competitions in the industry. The example of wine industry, principal factors are price per bottle, labels’ image, consumer awareness, aging quality, vineyard and legacy, complexity, and wine range. Those are the basis structure of the wine market. If you think about satisfying existing customers’ demand, you cannot find blue ocean. According to the book, “To fundamentally shift the strategy canvas of an industry, you must begin by reorienting your strategic focus from competitors to alternatives, and from customers to noncustomers of the industry” (30). Therefore, Casella Wines focused on demand which is the demand categories of other alcohol drinkers such as beer, soft drinks and cocktails. To make a new value curve, their research found the four actions framework. Those frameworks are the categories of reduce, eliminate, raise, and create. As a result, Casella Wines developed new wine is called “yellow tail”. Yellow tail added the new strategy canvas of easy drinking, ease of selection, and fund and adventure. People’s image of wine was hard to pick, complicated taste, and high price means good wine. However, Yellow tail changed this image for non-wine drinkers. Therefore, people started buying this wine and Casella Wines was succeeded to open the …show more content…
Blue ocean strategy is not only to reduce cost but giving new excitement and demand for customers. The one example of blue ocean is Cirque du Soleil. I’ve seen their performances, and this is still a circus but its different. As the book mentions, there is no animal or a famous singer in a show. Their ticket price range is not cheap but if you compare to bullet or opera, Cirque du Soleil’s tickets are not too expensive. Circus didn’t have the strategy of music, dance, and ballet. So, blue ocean market space is to add new categories to existing industry and make it new industry. Adding new strategies to existing industry means to expanding target demand. QB House changed the common ideas what barbershop does by hair vacuum cleaner. This is a great idea to cut the total time of service and cost. Also, this idea matched to busy professional people and children who doesn’t have patient for a long hair cut time. To achieving both differentiation and low cost by value innovation, companies need to look closer to customers’ desire. In Japan, there are kids’ barbershop with TV and entertainment system to make children sit tight. This is also blue ocean. Many industries try to compete competitors but there are more desired demand and chance of increase their
They explain about the tools and frameworks of blue ocean strategy divided to several principals. First, the strategy canvas is to understand your current competitions in the industry. The example of wine industry, principal factors are price per bottle, labels’ image, consumer awareness, aging quality, vineyard and legacy, complexity, and wine range. Those are the basis structure of the wine market. If you think about satisfying existing customers’ demand, you cannot find blue ocean. According to the book, “To fundamentally shift the strategy canvas of an industry, you must begin by reorienting your strategic focus from competitors to alternatives, and from customers to noncustomers of the industry” (30). Therefore, Casella Wines focused on demand which is the demand categories of other alcohol drinkers such as beer, soft drinks and cocktails. To make a new value curve, their research found the four actions framework. Those frameworks are the categories of reduce, eliminate, raise, and create. As a result, Casella Wines developed new wine is called “yellow tail”. Yellow tail added the new strategy canvas of easy drinking, ease of selection, and fund and adventure. People’s image of wine was hard to pick, complicated taste, and high price means good wine. However, Yellow tail changed this image for non-wine drinkers. Therefore, people started buying this wine and Casella Wines was succeeded to open the …show more content…
Blue ocean strategy is not only to reduce cost but giving new excitement and demand for customers. The one example of blue ocean is Cirque du Soleil. I’ve seen their performances, and this is still a circus but its different. As the book mentions, there is no animal or a famous singer in a show. Their ticket price range is not cheap but if you compare to bullet or opera, Cirque du Soleil’s tickets are not too expensive. Circus didn’t have the strategy of music, dance, and ballet. So, blue ocean market space is to add new categories to existing industry and make it new industry. Adding new strategies to existing industry means to expanding target demand. QB House changed the common ideas what barbershop does by hair vacuum cleaner. This is a great idea to cut the total time of service and cost. Also, this idea matched to busy professional people and children who doesn’t have patient for a long hair cut time. To achieving both differentiation and low cost by value innovation, companies need to look closer to customers’ desire. In Japan, there are kids’ barbershop with TV and entertainment system to make children sit tight. This is also blue ocean. Many industries try to compete competitors but there are more desired demand and chance of increase their