Question

The market universe is composed of two types of oceans: red oceans and blue oceans. Red oceans are all the industries in existence today; they are increasingly characterized by intense competition. Blue oceans are all the industries not in existence today; they are untouched and uncontested. Companies need to go beyond competing; they need to create blue oceans. This article* presents the value curve framework (Four questions to be asked for the redefinition of “what”) that can enable firms to develop blue ocean strategies. *Kim, W. C., & Mauborgne, R. (2005). Blue ocean strategy: from theory to practice. California management review, 47(3), 105-121. Analyze the industry in which ONE PLUS is operating, using ‘The Strategy Canvas’ tool.

Answer 1

The strategic logic needed to guideline the creation of blue oceans is value innovation because value innovation is the foundation of the blue ocean strategy. In the value innovation it means that creating the value for the buyers of your company and then opening up the new and uncontested or we can say brand new market place.

Value innovation not just focuses on the innovation but it tends to focus on the value creation on incremental basis. Innovation without value is usually the market pioneering, futuristic, aiming beyond what the buyers are going to accept or pay for. It is believed that the companies either create value for customer at higher cost or can create reasonable value at lower cost.