The Principles Of The Blue Ocean Strategy Essay
Kim and Mauborgne (2005) assert that in order to break out of red oceans firms must break out of accepted boundaries that define how they compete (p. 48). In fact, breaking out of boundaries is the first principle of the blue ocean strategy and based on that principle the six paths framework was created. The six paths challenge six assumptions that companies tend to follow while creating their red ocean strategies. Within those assumptions, companies tend to focus on the same buyer group, they define their industry similarly, focus on being the best in that industry, and focus on the same point in time (Kim & Mauborgne, 2005, p. 48).
Path 1: Look Across Alternative Industries
Because a company competes within its industry and with companies in other industries that produce alternative products or services, the first path encourages a company to look across those alternative industries. This includes products or services that have different functions and forms but share the same purpose (Kim & Mauborgne, 2005, p. 49). Given motor oil’s primary purpose of being a lubricant, finding alternatives that address the same objective is rather difficult. For example, electric cars do not require oil changes as no oil is used to run the engines (Kelly, 2012). Therefore, ExxonMobil’s attempts at path one could include creating oils with longer life cycles to deliver long lubricant performance or investing in alternative fuels (i.e. canola oil). Mobil 1 Extended Life…