Blue Ocean Strategy Theory and Criticism

Outline the main components of Kim and Mauborgnes (2004) concept of amobarbital sodium maritime Strategy. Critically assess the strengths and limitations of this approach to pursuing combative advantage. Use relevant ex huges to support your argument. Introduction In the contemporary foreign business environment, innovation has become part of any come withs paramount strategy for continuous survival. Nokia, despite beingness the worlds largest mobile phone manufacturer having a large customer base, realized how lack of innovation to debate against rivals high end smart phones threatened its market presence. Kim and Mauborgnes (2004) Blue ocean Strategy is one of the major contributions in that context. Accordingly, this essay examines the Blue Ocean Strategy concept in the following order: First, the theory is explained with a real-life example. Secondly we tang at few of its limitations. Thirdly, a critical appraisal of wherefore this approach is better or worse off than otherwise competing and value innovation theories is presented and finally the conclusion is drawn. Blue Ocean Strategy Theory According to Kim and Mauborgne (2004) the business universe consists of two distinct kinds of spot: Red and Blue Oceans.

Red Oceans are the know market space where industry boundaries are defined and accepted, and the militant rules of the game are known. Here companies try to outperform their rivals to clutch a greater share of the market. As the market space gets crowded, prospects for profits and growth are reduced. Products become commodities, and cutthroat opposition turns the ocean bloody and hence, the term red ocean. Blue oceans, in contrast, refer to all the industries not in existence straightawayâ€"the unknown market space, untainted by contestation. The essence of Blue Oceans is value innovation where demand is created rather than fought over. There is ample opportunity for rapid growth and profits. In Blue Ocean, competition is irrelevant because the rules of the game are... If you want to get a ample essay, order it on our website: Orderessay

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