MODEL 48

KIM AND MAUBORGNE’S BLUE OCEAN STRATEGY

Use this to escape from tired, over-crowded old markets and find a new ocean to play in.

W. Chan Kim and Renée Mauborgne’s model differentiates between what they call Red and Blue Ocean Strategies. However, you should realise that it is essentially a theoretical model that describes what should be done, it doesn’t actually tell you how to do it. That said it still provides a valuable way of thinking about where an organisation should position itself vis-à-vis its competition.

Red Ocean StrategyBlue Ocean Strategy
  • Concentrates on beating the competition in existing markets.
  • Looks to maximise existing demand.
  • Believes that there is a trade-off between value and cost and aligns its strategy ...

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