Saturday, March 9, 2013

Blue Ocean Strategy From My Point of View

From my point of view, it will almost be impossible to eliminate competitors unless the innovation is a breakthrough and it is a tacit knowledge. A successful implemented Blue Ocean Strategy might only last in an interval period, as other competitors will start to come out with similar services or products related to the existing one. The application done by companies or government agency might only cover some of the part in Blue Ocean Strategy and not as a whole. 
"The Blue Ocean Strategy is a management tool which can be applied in the government’s administrative context as it enables us to think out of the box with good results. The government had found the formula contained in the theoretical business strategy particularly beneficial in maximizing output, while incurring the lowest cost possible." (1Malaysia Blog)
The focus is more on the maximizing output and to reduce cost as much as possible, which may be part of the value innovation. Some other opinions claim that there are companies had implemented the Blue Ocean Strategy, but after they had define their own market share and the location of the market share. For example for Air Asia, the low price they introduced had created a new market share for the people especially in Malaysia. People with middle income are the market share and the targeted location is within Malaysia (even though the business is expanding around the globe).

Muhammad bin Kamarulazizi

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