Blue Ocean Strategy Paper
Julian Mackie
MKT/421
November 24, 2014
Stephen Grothe

Blue Ocean Strategy Paper
When you think about a Blue Ocean Strategy, there are three words that come to mind. The first one is innovative. Blue ocean strategy generally refers to the creation by a company of a new, uncontested market space that makes competitors irrelevant and that creates new consumer value while decreasing costs. It was introduced by W. Chan Kim and Renee Mauborgne in their best-selling book of the same name. The second word would be intelligence.” The Blue ocean strategy made it so companies would be able to come up with a whole new way to do business in either an industry or invent a new way of doing business.” ("Financial Times", 2014).
The third in final word would be strategic. There are a few guidelines that were proposed to companies seeking to create blue oceans. The first guideline would be to identify the key features/dimensions that currently define a product and or service. The second guideline is to identify a group of customers who only value a subset of these features. These customers may be currently using lower end alternatives, or maybe very different from the current customers while having needs that similar at some fundamental level.
The third guideline is to make a product or service better on the dimensions valued by the new target customers. “This step is counter-intuitive but necessary in order to create value while decreasing cost. The final guideline is to consider making the new product or service better on the dimensions valued by the new target customers and or introducing new features targeted to these new customers”. ("Financial Times", 2014).
The importance of a Blue Ocean strategy can simply be defined as innovation. When you look at the current technological stage, productivity is at high levels, the supply exceeds the