![]() ![]() The dominant model in the industry at the time was for cars to be custom-made, and the creation of a new manufacturing process enabled Ford to massively undercut the prices charged by competitors, as well as producing more reliable vehicles. One of the earliest and most successful proponents was the Ford motor company, which, in 1908, created the world’s first production line for the manufacturing of standardized cars. Examples of companies which have pursued a blue ocean strategy Ford It starts with the belief that the competition in your field is irrelevant, because rather than trying to outperform them, your business innovates in a manner that redraws the boundaries of the industry as a whole, and then operates exclusively with the new space. Unlike many strategic business theories, the blue ocean strategy has firm roots in the real world, with the original theory being the result of market analysis that covered more than 30 industries for a period of longer than 10 years. Practical application of the blue ocean strategy ![]() As a strategy, it combines reduced risk with higher profits, and emphasizes innovation over competition. Rather than competing for a slice of an increasingly shrinking pie – the red ocean strategy – a blue ocean strategy sees a business creating a pie of its own or increasing the size of an existing pie. The blue ocean strategy, on the other hand, involves finding, developing or creating new and uncontested markets. ![]() Adopting this strategy involves taking on established forces within a market, and might involve doing something like launching a new soft drink to compete with Coke and Pepsi, or an online auction site as an alternative to eBay. The established red ocean strategy is named after the striking visual metaphor of an ocean that has been stained with the blood of competitors engaged in fierce and violent battle. The book set out an approach to business that was in sharp contrast to the “red ocean strategy” more traditionally pursued. The concept of the blue ocean strategy was set out in a book of the same name, by W. The phrase “blue ocean strategy” describes a market strategy that differs from the conventional approach of entering an established market and attempting to compete with existing players. ![]()
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