Blue Ocean Strategy: Innovation for Market Success

Management Innovation
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
Innovation Theory.......................................................................................................................3
The five step process of Blue ocean strategy...............................................................................6
Evaluation of the theory (Benefits and limitations).....................................................................6
Company background..................................................................................................................8
Historical Development...............................................................................................................9
Application of the Blue ocean Innovation Theory in the historical development context........10
Future Development..................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Most of the firm are involved into competition as well as struggling for market share, brand
differentiation and others. So, it is important for them to perform innovation continuously for
dealing with its competitors. Innovation is considered as process of performing changes into
existing things which are already developed through launching new things. Moreover, it is whole
about assisting firm development that involves practices like managing ideas, finding objectives
as well as encouraging team members (Aarikka-Stenroos and et. al., 2017). It is applicable to
enterprises for enhancing the effectualness of productivity or services. Since 19 th period mid,
creativity appeared in scientific research area. Also since 20 th ordinal half the concepts of
creation started to dispersed around several areas of information. Also, various concepts of
innovation initiated to innovate such as disruptive innovation, Blue ocean innovation and other.
In this report the focus will be Blue ocean strategy; it is define as a market for goods in which
there is not any competition or very less. Its main aim is to capture new demand as well as
develop competition irrelevant through introducing a product with effective features. The
covered in this report are blue ocean theory principal, process along with its evaluation.
Moreover, application of blue ocean theory into historical and future development is also
discussed in this report.
MAIN BODY
Innovation Theory
The concept of Blue ocean theory is helpful in identifying new gaps into marketplace. This
means reducing competition as well as developing an open market space. It aims to avoid Red
oceans with various similar competitors and lower profit and also it may be determined with
strategic canvas. Undertaking a new strategy that is canvas for obviating red ocean strategy for
existent marketplace as well as intent to beat rivals and use the current petition (Biemans, 2018).
So, respective strategy develops uncontested market and aim to create competition that is
ineffective through developing new demand. By focusing upon creating competition irrelevant
there are some aspects that Blue ocean strategy requires to evidence. In case firm acts in
favourable way in minimising the cost will enhance purchase value and ultimately will develop a
valuable innovation.
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Blue ocean strategy is to concentrate upon reconstructing the marketplace, seeking at large
picture and reach beyond of what consumers are presently demanding. It categorised them
strategy by concentrating upon strategy canvas characteristics (Etzkowitz and Zhou, 2017).
Performing on 4 frameworks that is reduce standard factors within sector, obviate factors which
are assumed, develop opportunities the sector that have not facilitated before and increase
standards that are above sector.
As per Chan and Mauborgne 2016, valuable innovation is helpful to developed into well-
known places within firm’s practices that affirmatively affect organisation’s cost structure and
their consumer’s feedback. For instance, cost saving method is effective in eradicating several
elements that rise into industry that are not provided. As time goes on, prices are minimised
under economies of scale that is concerned with higher volume of sales which produced value.
Effective blue ocean schemes obligatory about reducing business risk not taking the risk (Kim,
Mauborhne, 2015).
Figure 1. The cornerstone of Blue Ocean Strategy
(Source: Google scholar, 2020)
The Strategy Canvas Framework Tool
This tool is considered to be an activity as well as analytical model for developing a
strong blue ocean strategy. Identifying the exact state into market area, it will enable an effective
acknowledgement of competitors, factors which firm compete upon their product or services.
Seeking in what consumer receives from present rivals.
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