The Explainer: Blue Ocean Strategy
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- เผยแพร่เมื่อ 16 มิ.ย. 2024
- When you break the bounds of existing industries, competition becomes irrelevant.
The business universe consists of two distinct kinds of space, which we think of as red and blue oceans. Red oceans represent all the industries in existence today-the known market space. In red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are well understood. Here, companies try to outperform their rivals in order to grab a greater share of existing demand. As the space gets more and more crowded, prospects for profits and growth are reduced. Products turn into commodities, and increasing competition turns the water bloody.
Blue oceans denote all the industries not in existence today-the unknown market space, untainted by competition. In blue oceans, demand is created rather than fought over. There is ample opportunity for growth that is both profitable and rapid. There are two ways to create blue oceans. In a few cases, companies can give rise to completely new industries, as eBay did with the online auction industry. But in most cases, a blue ocean is created from within a red ocean when a company alters the boundaries of an existing industry. This is what Cirque du Soleil did. In breaking through the boundary traditionally separating circus and theater, it made a new and profitable blue ocean from within the red ocean of the circus industry.
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Most startups die because they lack the strategy to be innovative and fall into the trap of joining competitive markets instead of creating their own market. Those who follow the blue ocean strategy like AirBnB, Uber, Southwest airlines, etc. did have become increasingly successful.
@@manishagarwal527 why did uber fail in India?
@@kubilay8366 often due to local regulations and the power of the local taxi lobby
@@jonsouth1545 yep, you still have to consider external factors that are out of your control no matter what industry you're in.
@kubilay8366 at first Uber was cheap and later on :
Cost increment
Consumer dissatisfaction and less passengers on Uber
Less income of Uber driver
Pillars of Uber failed : Driver and Consumers..
Uber was successful because they said you didn't have to tip. As soon as they put taxis out of business, they raised price and added tipping
Blue Ocean Strategy is a fancy way of saying, "Differentiate or die."
Dat
It‘s the blue ocean way of saying that
Blue Market Strategy is amazing! It creates new industry, new market, with the considerations of adding (value and benefits) with cost consideration stays in business for a long time and becomes unique that no other company can give the same products and services. - Felicidad PFA
Simple and effective presentation
That was a brilliant explanation.
It's an amazing strategy and i strongly recommend it , Thank You Harvard
my favorite strategy theory ... (for plans, aims and visions)
This is compelling writing. A comparable book I read had a transformative effect on me. "The Art of Saying No: Mastering Boundaries for a Fulfilling Life" by Samuel Dawn
This is brilliant and thoughtful 👏😮
Yes! Blue Ocean Strategy!
Apple joined a Red-Ocean market as there already existed a lot of different mobile phones and define their own Blue Ocean market ...still fascinated
No they started as blue ocean right from the beginning.
@@MegeshVaidun what is apple blue ocean market?
@@user-jy6kd7xg4d what? they disrupted with real "smart phones"... something that incumbents such as Nokia, Motorola, Blackberry, Sony Ericsson, Siemens did not do
As apple is the first company that defines what smart phones are while the rest of competitors pushing against each other for the existing demand of functional phones
They didn't join red ocean. The "Apple way" has mostly been carving out their new market, offering values not seen elsewhere. Even when they join "established market", like when they make AirTags, they have ridiculous advantage that their competitors can't compete with because they integrate their devices. When Apple is competing in laptop, they are also in a Blue Ocean because their machine run a completely different operating system and have softwares that can't be accessed on the other side of the ocean.
the animation is amazing
The animation is wonderful. Can anyone throw light on which tool was used for the animation ?
Stools
Cool!
In Strategic Management, this is similar to Product Differentiation.
HBR thank you
Blue Ocean Strategy has been invented by two teachers of INSEAD. It is designed around 8 'ideas'. One of them is to exceed the competition by innovating
In the creation of a blue ocean is through value creation by innovation.
The Blue Ocean strategy. Could be easily explained in terms that make sense. You can pursue a sales strategy which is cost intensive. For example: retail if you create a products and assertion to be in stores and fight over store shelf space. The five forces really come in to play with Red Ocean strategy.
Developing doesn't frown on sales it's more about insights of what order things should be done. If you compete the exact way your top 3-5 competitors do. I think not the best strategy generally. Very complexed to describe rationale. Each business the discussion and rationale is at least slightly different.
Blue Ocean are great packed with R&D, emerging markets, and differentiation. Do you agree?
Exactly what clearpoint neuro is doing for drug discovery and device implants inside the existing neuro surgery market.
"Wala namang kaabang-abang sa red ocean, 'di ba?
Ang blue ocean ang ninanais naming lahat na maabot"
Thank you all very much
So in other words; instead of joining an existing market and competing with other existing companies - you venture into a new market with no existing competitors? ….or how would you put it simply?
Harvard Thank you
Blue ocean strategy means do what others are not doing or cannot do.
As a new company , you can give many offers that can disrupt the marketplace seeking consumers attention.
Wowwwwwwww
Blue ocean is scary tho. You never know what kind of unknown sea monsters are lurking beneath you.
It can be copied.
2023 May 17 - HBR youtube- The explainer channel: Blue Ocean Strategy
(Tracer: Comment Part 1 by Emmanuel Matuco started on the HBR youtube The Explainer: Solving Problems Using The Worst Idea Possible) (continuation of Comment Part2 in the above video channel, with that comment treated as Part2A)
CommentPart2B
In the closing pages of the Herman Hesse’s “Siddhartha”, there was this unforgettable scene that left a deep imprint on me. (With your kind indulgence, please allow me to spin-off from that books storyline; use some of its themes or even re-enact some scenes to add impact to the spin-off. Please allow me to re-weave my personal impressions of that moment, based on what I’ve experienced in my life now, [and not based on the exact book passages] in Ateneo de Davao’s University library).
To start:
After being separated from each other for quite some time, courtesy of their respective quests, the two childhood friends, Siddhartha and Govinda, met again.
Dawn is breaking. Flickers of light skimming the edges of distant mountains and chasing away the shadows. They’ve savored each other’s company for most of the night. Exchanging ideas; reminiscing their childhood perhaps, or the teachers and new friends they’ve met along the way.
For Govinda, it is time to part ways and continue his quest. He had deep respect for Siddhartha, for what he attained. Something that perhaps he could never have. He shrugged it off. Life. He loved his friend and looked at him with loving care. Siddhartha kept talking. About life, about a ferryman or something. But Govinda’s mind already stopped questing. His cup is full. His mind was already moving on to how to manage the painful but inevitable parting.
For Siddhartha, it must have been very heartbreaking, seeing Govinda this way. So he stopped. Bowing slightly, full of reverence, to his dear friend, Siddhartha extended his gnarled hand, opened upwards, beckoning gently: “Come closer Govinda. Leave me with your gift of a kiss on my forehead my dear friend.” Govinda hesitated. Perhaps it is better to remember him and this painful moment, by parting with a loving gesture. They’re old. Advanced. This time together is probably their last. Govinda stood up and kissed Siddhartha’s forehead.
With tears of goodbye about to fall from his eyes, his heart filled with compassion and love for his childhood friend, wanting to hug Siddhartha for the last time, Govinda’s lips, touched Siddhartha’s forehead. At that moment, Govinda, attained the Way.
Wisdom, if wisdom is one of the essential elements of a life of lasting happiness, cannot be taught. Words have limits. Wisdom must be experienced.
In their quests, both Govinda and Siddhartha were “seekers”. They lacked something. There is a “metaphorical” hole inside them. They need to fill it. To learn why it’s unfillable, to “take” if necessary, so they could be made whole. Whether it is knowledge, wisdom, material, non-material, or something else, they sought to close this “hole” and be made whole.
What Siddhartha awakened to was the “fact” that we all are, originally, fully endowed. Perfect. We all are manifestations of the Great Pure Mystic Law, Myoho-Renge-Kyo. The essence of life. All life.
Siddhartha was explaining to Govinda (as mentioned, this is a spin-off version) “Govinda, you need seek no further. You are complete. Fully endowed. You are Myoho-Renge-Kyo. Just as you are.”
But because words, like knowledge, have limits, the only way left to express his love and compassion for his friend, is to help Govinda “enter the way”. But he cannot impose “the way” on Govinda. For Govinda to “enter” it, Govinda must manifest, through that “symbolic” and “metaphorical” concrete gesture, a kiss on Siddhartha’s forehead, his love and compassion for the humanity he saw in Siddhartha. A humanity present in all of humankind since time immemorial.
“You are a full cup, Govinda (Siddhartha continues) You are perfectly endowed. All the colors and exquisite shapes and forms, in the physical cosmos or beyond it, moving or at rest, all matter or non-matter you could possibly imagine and envision; all the textures and things that tingles visible or invisible, imaginable or beyond imagination; all the music and tones, and melodies your ears could ever hear or capture; all the mathematical formulas, known or still unsolved or unborn; all the inventions, innovations, ideas, concepts of all forms of energy and its opposite, all the flavors of both darkness and light, of both pain, suffering, joy, all of it… all of it are within your life, Govinda. You were an artist, a mathematician extraordinaire. And all in between. A hero, a sovereign, a teacher, a parent, a friend. A woman. A man. A child, an old man. All of it and more. If your life is a tower, you have all these treasures within you Govinda.”
Through your unending past lifetimes, you have accumulated all those treasures and stored them in your tower of life. And the key to make all those treasures re-surface and help complete you, Govinda, is not to lean towards thinking of “taking” of whatever you think will complete you, but being fully endowed, to start compassionately “giving” what you, unfathomably have. That is how to open this Treasure Tower. Not through the mind or ascetic meditation, but through daily concrete acts of compassion. It is extremely hard to sustain like what the ferryman do everyday. But only through concrete acts (not mere thoughts) of compassion for others will the key to unlock this Treasure tower emerge. You will then understand that just as your past is unending, this storehouse of treasures you have accumulated in your Treasure Tower cannot be exhausted, no matter how much you extract and give. Using compassion as your bucket, or your powerful pump, the well’s hoard becomes surprisingly unfathomable.
Therefore, you, Govinda, are perfectly endowed. Just as “life” is perfectly endowed. The life you have and the life of the universe are one. You, in this particular lifetime, is but one of the enumerable waves of this vast ocean called life. Uncountable individual waves form, constantly manifest, dynamically disappear, and manifest, and disappear again, in an unending cycle on the “surface” of this endlessly vast ocean called life. From nothing, to something, to nothing again, to something again. Yet, a cup of ocean water taken from this ocean, contains all the ingredients of the ocean called Myoho-Renge-Kyo. The ocean swells, surge up, and down in mighty waves of the Ten (10) worlds of desires, but again, and again when the right conditions are present, a wave, like you, Govinda, will again be formed and emerge. A wave that contains all the ocean within it. Perfect. Fully endowed. Just as the vast ocean is full of unimaginable treasures, like an unimaginably vast Treasure Tower, so am I, so are you, so are the others, Govinda. You are the Treasure Tower.”
Govinda slowly straightened up, as if waking from a dream. His knees still weak by these realizations, he sat beside Siddhartha. Held his friend’s hand in gratitude. Govinda did not control the tears flowing from his grateful heart through his eyes.
(At this point, the Librarian gently rang the bell calling everyone’s attention. Its closing time).
Filing up behind the other students walking out through the library’s doors, two thoughts surfaced:
When the collective life-tendency sustains the belief that we, as individuals, as corporations, as nations, as a specie are all “imperfect”, and therefore must resort to “taking” more than “giving” to be complete, we regress. We become exclusive, our world will become “finite”, and will shrink and life becomes unsustainable. When our collective life-tendency shifts to the belief that we are all “originally perfectly endowed” and therefore must start “giving” more than “taking”, our “world” will become infinite and will continuously grow. The emergence of the original humanity in us is the emergence of enumerable Treasure Towers. The legacy of wisdom the ancients, like Govinda, and Siddhartha, and Nichiren, left us with.”
But if Govinda and Siddhartha’s and Nichiren Daishonin’s life are all perfectly endowed and compassion embodied, what is there left in life worth enjoying and worth looking forward to? In a fully endowed life, what is this thing called life?
(This is the final segment of commentPart2A & B)
Hola
I only see red. It is "impossible" for me to find blue.
Read the book
Change your thinking IM-possible
Why we should DEFINITELY go to Red Ocean instead of Blue Ocean th-cam.com/video/SszBOFqbGDk/w-d-xo.html
Used Cirque de Soleil as example...and yet they didn't survive the COVID economy.
Yeah, but they can recover in no time when they decide to perform live again.
what does this have to do with dealing with competition in the market? its a totally different situation
"Wala namang kaabang-abang sa red ocean, 'di ba?
Ang blue ocean ang ninanais naming lahat na maabot"