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Date
02Feb '12

Higher Growth Through the Blue Ocean Strategy: Implications for Economic Policy

Science Direct

Theme: Empirical evidence reporting a correlation between blue ocean strategy and rapid growth, using data from 512 fast-growing companies in Slovenia and, as well as an analysis of online retail giant Amazon.

Summary: To stimulate economic growth, many economic policies focus on support to companies of a specific size, generally small and medium enterprises (SMEs), new start-ups, and to specific sectors, such as IT and other high-tech industries. Such policies also incentivize specific activities, such as R&D and technology innovation, and measure success by the number of patents filed and approved. The authors discuss the shortcomings of this approach to policy making and propose another based on blue ocean strategy. The authors empirically test four propositions derived from the blue ocean strategy frameworks, using data from 2007 consisting of 512 companies that satisfy the criterion of extreme growth, known in Slovenia as Gazelles. Their discussion also includes an analysis of swiftly growing online retailer Amazon. The findings provide empirical evidence of a correlation between rapid growth and blue ocean strategy, that in fact all companies that grew fast demonstrated blue ocean strategy, confirming that creating and exploiting new market spaces leads to higher growth. Moreover, the authors also show that fast growth is independent of both company size and industry. Companies achieve high growth through value pioneering (or what Blue Ocean Strategy’s authors call value innovation), not only through technology pioneering. The authors challenge some well-established premises of economic policies and argue that their findings call for a shift in focus to include value innovation, creation of uncontested market spaces, and intra-industry cooperation and collaboration between companies of different sizes.

Reference: Lindič, Jaka, M. Bavdaž, and H. Kovačič. "Higher Growth Through the Blue Ocean Strategy: Implications for Economic Policy." Research Policy 41 (June 2012): 928–938.
01Nov '12

Applying Blue Ocean Strategy to the Foundation of Accountable Care

American Journal of Medical Quality

Theme: Commentary that argues for applying blue ocean strategy to the challenge of redefining health care delivery.

Summary: The authors’ premise is that health care leaders should apply blue ocean strategy to redefine and optimize health care delivery. They note that the current configuration for health care delivery is flawed and that the industry has clearly identified areas of underperformance: overutilization, avoidable readmissions, poor communication, high infection rates, and service fragmentation. They suggest that the strategic imperative for the industry is to anticipate future competitive forces and create new markets. This commentary argues for applying BOS to determine which factors that the industry currently competes on should be eliminated and reduced and which factors should be raised and created to open up new market space and create a leap in health care performance. The article also cites examples of strategic moves like telemedicine programs for behavioural health; single stay rooms, where a patient remains in one room for the entire hospital stay to reduce overall stay and increase patient satisfaction; innovative web-based administration solutions like Hello Health; the prepaid gift card, Highmark, which can be used like a debit card to pay for health-related expenses; and InstyMeds, an ATM-style dispenser of prescription medications as emerging examples of accountable care that have created uncontested market spaces by focusing on new health care consumer demands. The authors suggest that other similar blue ocean strategic moves can be conceived by applying the Four Actions framework to reduce costs while driving up value and creating new demand.

Reference: Welch, Shari J. and B. Edmondson. "Commentary: Applying Blue Ocean Strategy to the Foundation of Accountable Care." American Journal of Medical Quality 27 (2012): 256-257.
01May '09

Blue Ocean Strategy Versus Competitive Strategy: Theory and Evidence

ERIM Report Series Research in Management

Theme: Empirical test of blue ocean strategy versus competitive strategies based on data compiled from 655 retail shops across 41 shop types within the Dutch retailing industry.

Summary: This paper addresses the debate surrounding blue ocean strategy versus competitive strategy. The authors note that blue ocean strategy seeks to turn strategic management on its head by replacing competitive advantage with value innovation as the primary objective, in which firms create consumer demand resulting in increased profitability in the industry. To test the dominance of either strategic school of thought in both the long and short terms, a theoretical model is outlined that posits that as long as there are profits to be had in a particular market, more and more vendors will arrive to serve that market until it reaches a saturation point, where everyone more or less breaks even. Looking at entire industries in this way over time would tell if companies succeed by creating new markets (blue oceans) or pursuing competitive strategies. If companies succeeded by creating new markets that attracted consumers over the long term, industry profits and the number of vendors would both steadily increase. If, however, firm profitability went down as the number of firms went up that would show that companies focused on competition would outperform those setting their sights on the blue oceans. Using a comprehensive data set of the Dutch retail industry comprising of 655 retail shops across 41 shop types analyzed over the period 1982-2000, statistical evidence is brought to bear on this debate to tests the hypotheses. The authors found that average firm profits were positively related to the number of firms in more than half the shop types, whereas profitability and the number of vendors rose and fell together across all shop types over the period spanning indicating that blue ocean strategy was at play over the long term. They also report that in the short term competitive strategy appeared to dominate. The study shows that blue ocean and competitive strategies overlap and managers do not face an either/or decision between the two.

Reference: Burke, Andrew, A. van Stel, and R. Thurik. “Blue Ocean Strategy versus Competitive Strategy: Theory and Evidence.” ERIM Report Series Research in Management (May 2009).

Burke, Andrew, A. van Stel, and R. Thurik. “Blue Ocean Strategy versus Five Forces.” Harvard Business Review 80 (May 2010): 28-29.

Web Sitenizde Urününüzü Nasıl Anlatırsınız? (How Would You Describe Your Product on Your Website?)

Dünya,Turkey

Geçen yazımızda, internet sitelerinde ve her türlü geleneksel medyada ürün ve hizmetlerin hedef kitleye anlatımıyla ilgili genel zaafiyetten söz etmi_, bir web sitesinde veya basılı bir bro_ürdeki içeri_in, tüketici merkezli olarak nasıl kurgulanması gerekti_i konusu üzerinde duraca_ımızı belirtmi_tik. ... "Bu kö_eyi izleyenler, Mavi Okyanus Stratejisi'ni (MOS) yakından bilirler. Chan Kim ve R. Mauborgne'nin MOS'ta ayrıntılı olarak ortaya koydu_u "alıcı faydası haritası"yla ilgili "Pazarlama 3.0" kitabımıza da bir bölüm ayırmı_tık."
01Apr '13

Creative Design Leadership for Open, Dynamic and Networked Challenges

The Huffington Post,United States

Many new product introductions today offer minor upgrades to previous models with no significant benefits. Product designers can be winners in the blood-red ocean of intellectual property battles, public relations blitzes, and price-cutting, if they could reframe offerings, making them not only sustainable but also re-introducing humanity and cultural connectivity in design. The author suggests that this ocean is blue and wide open for designers, however the task is challenging and requires nothing short of a new breed of design leaders who can diverge from ‘business as usual’ and envision strategy, context, and execution to create meaningful new offerings. The Masters of Design (MDes) program offered by  Hong Kong Polytechnic University, together with Northumbria University and University of Technology in Sydney prepares designers to do exactly so.
01Apr '13

State of the Remanufacturing Industry

Kim, C.
ENX Magazine,United States

Gary Willert, President and CEO of LMI Solutions, talks about the greatest threats to the remanufacturing industry and what strategies to employ to counteract them. He believes that one of the main threats is internal competition and that blue ocean strategy, which LMI applies, is the right strategy to counter it.
01Apr '13

The Glory of Growing: How Innovation Spurs Sustained Profits

Bernat, C.
SGIA,United States

Chris Berna, Co-Founder and Chief Revenue Officer at Vapor Apparel, argues for a systematic approach to adapt to a changing environment. He agrees with blue ocean strategy that tomorrow’s leading companies will succeed not by competing, but by creating uncontested market space and recommends that companies find their own blue oceans.

The Glory of Growing: How Innovation Spurs Sustained Profits

Bernat, C.
SignIndustry,United States

Chris Berna, Co-Founder and Chief Revenue Officer at Vapor Apparel, argues for a systematic approach to adapt to a changing environment. He agrees with blue ocean strategy that tomorrow’s leading companies will succeed not by competing, but by creating uncontested market space and recommends for companies to find their own blue oceans.
01Apr '13

Do You Have a ‘Blue Ocean Strategy’?

Soll, J.
Oral Health Journal,Canada

Dental practices have long competed head on to try and gain a competitive advantage. The author stresses that in order to survive in this environment, one must be innovative in their approach and reach beyond conventional wisdom to create a blue ocean in which their competition rapidly becomes irrelevant.
03Apr '13

Chronology of Najib’s achievements in four-year administration

Fz.com,Malaysia

The article lists major reforms and initiatives launched during the Prime Minister's first four-year administration. A number of the initiatives were launched under National Blue Ocean Strategy, including Rural and Urban Transformation Centres, 1Malaysia for Youth (1M4U), and 1Malaysia One Call Centre (1MOCC).
03Apr '13

Armed Forces to host army community volunteer day

New Straits Times,Malaysia

The Malaysian Armed Forces (ATM) hosted an Army Community Volunteering Day on April 6 and 7, to promote and strengthen the spirit of volunteerism in the community. The event is one of the initiatives under National Blue Ocean Strategy.
04Apr '13

Het succes van Almere: de blauwe oceaan! (The Success of Almere: the Blue Ocean!)

Dichtbij,Netherlands

Almere, a thriving city near Amsterdam, is an example of blue ocean strategy in action.
05Apr '13

Blue Ocean Strategy in the Networked Society – European Operator

Dob, S.
Ericsson The Networked Society Blog,Sweden

Price wars, an increasingly demanding customer base, and similar offering levels characterize the fierce competitive landscape in the European mobile operator industry. This article charts a strategy canvas for the industry.
05Apr '13

NBOS: Integrated Merchants for Discount Cards

Squad Pengguna,Malaysia

Discount cards are introduced under the National Blue Ocean Strategy to provide a range of products and services at discounted rates.
06Apr '13

Four siblings go into organic food business way before it was the in-thing

The Star,Malaysia

Three siblings decided to embark on a blue ocean journey and start an organic food business. Learn about how they found uncontested market space in the retail food industry in Malaysia.
07Apr '13

PM Najib launches Military Community Volunteering Day at 32 camps nationwide

The Star,Malaysia

The Prime Minister of Malaysia, Datuk Seri Najib Tun Razak, launched Military Community Volunteering Days to foster closer rapport between the security forces and the people. A total of 32 military camps opened their doors for public viewing for the first time as part of National Blue Ocean Strategy.
08Apr '13

1Malaysia Privilege Card Extended To Govt Retirees

Bernama,Malaysia

The Prime Minister of Malaysia, Datuk Seri Najib Tun Razak, announced that the '1Malaysia Privilege Card' that is available to police and military personnel has been extended to the 700,000 government retirees in the country in appreciation of their contributions. The initiative launched under National Blue Ocean Strategy enables holders of the card to enjoy discounts on goods and services offered by participating companies.
08Apr '13

La Estrategia del Océano Azul (Blue Ocean Strategy)

Soy Periodista,Colombia

Cirque du Soleil has created a blue ocean for itself by reconstructing market boundaries, differentiation, and reducing costs by eliminating traditional factors present in the circus industry while adding innovative features that attracted new customers. Read on to learn how the same methodology can be applied to political culture in Colombia.
08Apr '13

Blue Ocean Strategy: Long-term Solutions for Business Trends

Wijesiri, L.
Daily Mirror,Sri Lanka

In this instalment of a series of blog posts, author discusses how to reconstruct market boundaries using 6 Paths Framework and how to focus people on the big picture using Strategy Canvas. Practical application of the concepts is shown through Nintendo Wii.
08Apr '13

Galaxy Note II Và Chiến Lược ‘Đại Dương Xanh’ (Galaxy Note II and Blue Ocean…

DoanhNhan Saigon Online,Vietnam

Are you interested in knowing how Samsung Galaxy has created a blue ocean for itself? Read on to learn how Samsung solves two distinct customer demands simultaneously with a smartphone suitable for productivity as well as high-quality entertainment.
09Apr '13

PPPs Will Be Expanded To Sabah – Ahmad Zahid

Bernama,Malaysia

The Prime Minister of Malaysia, Datuk Seri Najib Tun Razak, announced that the '1Malaysia Privilege Card' that is available to police and military personnel has been extended to the 700,000 government retirees in the country in appreciation of their contributions. The initiative launched under National Blue Ocean Strategy enables holders of the card to enjoy discounts on goods and services offered by participating companies.
09Apr '13

15 More Must-Read Business Books That Could Change Your Life

Houston Chronicle,United States

The Houston Chronicle selects Blue Ocean Strategy as one of the 15 business books that have helped change readers' lives: "Have you ever heard the business advice, 'squash your competition?' ... If you own a business, this book may provide a refreshing model for building a company that truly does stand out from the crowd." 
10Apr '13

Blue Ocean – That’s Me. Red Ocean – That’s Them

Women Are Game Changers,United States

An inspiring story of a woman who decided to swim out of a red ocean of competition in the world of networking and create a distinctive venture that helps women entrepreneurs connect with each other in meaningful and effective ways.
12Apr '13

First Designer Innerwear Brand for Men – Zoiro Launched in City

MENSXP,India

Zoiro, a designer innerwear brand for men, is following blue ocean strategy to revolutionize the innerwear market in India. To break away from the competition, the brand decided to innovate and introduced a team of Italian designers to produce new cuts that are comfortable and stylish.
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