Blue Ocean Strategy
What is the Blue Ocean Strategy By W · Chan Kim and Rene Moborunyu of the European School of Management (INSEAD), Professor of France, is the strategy that has been proposed by the book, which was announced in February 2005, ""Blue Ocean Strategy"". Here, for a company to survive, to improve the existing products and services, ""Red Ocean"" the existing market unfolds a conflict of intense high-cost ""bloody"", still in a new market with no competitors We are naming the unknown market space that has not been born and has the potential to infinitely spread ""Blue Ocean"". The aim of this strategy is to maximize profits by creating a new value market named ""Blue Ocean"" that is not related to ""competition"", and by providing high added value at low cost to users. Market redefinition method is a point of strategy development The most important point on which to practice the Blue Ocean strategy, the concept of ""Value Innovation (value innovation)"" in order to create new value market, is that redraw the market of the boundary line. Many tools and frames are presented in this book, but ""Action Matrix"" and ""Strategic Canvas"" are among the most important tools. Action Matrix It is a tool to re-organize its business by applying industry and other companies' own activities to the four segments ""remove"", ""increase"", ""reduce"" and ""add"". For the current competitive factors, we will organize how we can create a blue ocean by bringing about changes in ourselves. Strategy canvas The competitive factors are shown on the horizontal axis, and the vertical axis shows that level, which is a tool to compare efforts of our company and efforts of other companies. If the line that combines the points of each competitive factor is different from the lines of other companies, we can confirm that the possibility of creating a new market is high. In the above, we are creating new value markets from within existing markets, but it is also an effective means to create new value markets from the perspective of alternative industries, supplementary materials, services, etc. At first glance it seems like a differentiation strategy, but focusing on ""creation of a new market with high added value"", not from the perspective of ""competitive strategy"". In other words, by breaking the differentiation, it means to create a new competitive market. Therefore, it is important in this strategy to redefine the market using the above tools.