BU481 Lecture Notes - Lecture 7: Blue Ocean Strategy
Document Summary
Whole idea of creating an uncontested market space that makes competition irrelevant. Pulling a new group of customers and newcomers to the industry. Business two distinct spaces: blue, red. Blue oceans: all industries that are not in existence today, that are part of an unknown market space with no competition: demand is created rather than fought for, create blue ocean by. Altering the boundaries within a red ocean. Blue ocean are basically companies you think will exist 20 years from now. Blue ocean companies will be the engine of growth. Blue oceans are not about technology innovation: technology is sometimes involved in creation of blue oceans but does not define the creation. Incumbents often create blue oceans and usually within their core businesses. Company and industry are the wrong units of analysis. Doesn"t talk about how new industries emerge. Some of the most successful companies create industries most in uncontested industries.
