Blue Ocean Strategy

In The Name of ALLAH, The Most Beneficent and Merciful

Assalamu'alaikum w.b.t

Peace and Blessings be Upon The Prophet Muhammad SAW, His family and friends...

How your days? Is it difficult, worse or worth? Hope will be okay. Everything that happened in our life make it simple and always thinks that ALLAH doesn't make anything in this world without a purpose. Testing is not necessarily a bad thing, but sometimes there are also form of favor, and every hardship there is ease from it.

ALLAH SWT said in the Holy Quran, means:

"Surely, with difficulty is ease. With difficulty is surely ease"

(Surah al-Insyirah: 5-6)

Put your trust on ALLAH, He knows the best :)

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Okay, turned back on what I want to talk about the headlines. Blue Ocean Strategy. Do you ever heard before it?

There may be ever and probably never heard and want to know about it. Okay, I will explain what I understand and know about it.

BLUE OCEAN STRATEGY? WHAT IS IT?

"Blue Ocean Strategy is a business strategy book first published in 2005 and written by W. Chan Kim and Renee Mauborgne of the Blue Ocean Strategy Institute at INSTEAD, which is one of the top European business schools. The aim of BOS is not to out-perform the competition in the existing industry, but to create new market space or a blue ocean, thereby making a competition irrelevant"-Sorce

A "blue ocean" market space, where the industry has yet to take shape, with no long-term competitiveness and growth of the wide-open spaces and the potential benefits for firms that can create demand for new types of products. It seeks to make the competition irrelevant by creating a leap in value for both the company and its buyers.

RED OCEAN

Before I forget, I want to explain what the Red Ocean. Red Ocean is the basis of competition is trying to get a bigger share in the same defined market. Basically, it's boundaries are defined and accepted in the market. For example is phone. At the beginning, it's become blue ocean which not all people use it. But, it's became a red ocean since many phone with vary types many sells in the market.

Table 1

Table 1 above shows that the different between Red Ocean and Blue Ocean, which one of the difference is exploit existing demand for red ocean while for blue ocean is create and capture new demand. We can see that, in blue ocean strategy, they create to make the product become more advanced and nicer than the previously.

Example for "Blue Ocean" is Apple's, a new mobile phone-is an excellent example of a product where additional value has been created in a market where competition is fierce. By doing so, Apple found its Blue Ocean.

That's all from me for this week. I try the best to explain for this topic. Hope you understand. See you later with a new topic :)

Assalamu'alaikum :D

"Go where profits and growth are – and where the competition isn’t." 

                                                                                                                      - Kim & Mauborgne (PDF)