Blue Ocean Strategy - How to Create Uncontested Market Space and Make the Competition Irrelevant - Essay Example

Number] Blue Ocean Strategy; create your own market Some believe that the quickest way to become rich is to get lucky while doing business or investing in the markets. If that isn’t possible, then the way to the top is really slow and a lot of hard work is required. Basically, the book Blue Ocean Strategy – How to create uncontested market space and make the competition irrelevant by W. Chan Kim and Renee Mauborgne deals with the former idea of novelty and improvisation to generate such growth and profits one never knew was possible. New ideas are the key or the heart behind the book. The authors have claimed that a new idea will ensure enormous growth with zero competition. If one has to compete with other industries, they will have to suffer losses and campaigns that could drain them or turn their survival mode on. The book consists of five parts which describe in detail the processes of excelling in business and forming new strategies. The starting section outlines the most important parts of the blue ocean strategy and the importance of forming a low costing evaluation. It derives the concept of ‘value innovation’ in which it is essential and vital to come up with something different than others to that the attention and worth of the product increases despite the cost which it is at – even though the cost should be low so that the product isn’t extremely expensive. The market is always up for something different at not a very high price because then everyone is bound to give it a try. And with the population around in billions, creating a small fortune won’t be that hard. The second part entails how the blue ocean strategy was created. The first principal is to come up with something of which there should be no competition so that the market space is open and unchallenged. It tells to focus on the bigger picture, to dream big and not to just settle for small profits because that is how good business is done. The risk is always there of course but the blue ocean strategy helps in forming the courage to take that risk, especially if there is enough confidence in the idea or the product. The risk that comes up with business is the third part. The scheme and plan with which a strategy is formed has to follow the six principles first. They are good in ensuring an effective and a relatively safe way to start a business. First things first, the formulated plan has to make sense to everyone. Then there are the customers who will not buy the product that have to be unlocked by the three tiers. Following is to know what market is friendly and to make sure that there will be very little possibility that success won’t come about with the perfect strategy. There has to be a clear mind that what audience is being targeting as well. It is vital to know exactly what market is being targeted. The Blue Ocean Strategy is not a boring business book. It has a lot of examples from the old and recent industries to show how to be different and what it takes to be different. It also tells about what could happen and how to train the mindset into a different adaptation than the rest of the people so that it is fairly easy to escape the usual thinking and to break into a different conceptual view. The finality of the book lies in not the product but how the situation is dealt with; basically the leadership and the process behind it. Even if the idea is the epitome of innovation, it is difficult to pull through without perfect guidance and someone to overlook and see that everything is running smoothly. There will be many hurdles to come when a business strategy is being formed but the above two key points are necessary because they will help in overcoming the resources, effects, political and status quo problems that arise with the with a new strategic shift. A leader will keep the strategy going and will help in increasing the enthusiasm and confidence of the team so that things will work out in a better format because humans do not readily accept change, even if a new thing attracts almost ninety nine percent of the people (only if it is worth it). The authors have taken pains to make the reader understand that success stories are not always chance or sheer dumb luck. It is the formulation of a perfect and working strategy that makes millionaires, millionaires. The book also defines that differentiation and low cost can coexist together. Just because there is a conventional thought of low cost not really working with it does not mean it cannot happen. The book tells to value innovation most of all, to think out of the box. It is what makes competition irrelevant. It will help immensely to give an uncontested market space because there will be nothing other like it. And it isn’t that hard. With the blue ocean strategy, a lot of new ideas can be formed really quickly. The gaming industry, for instance, are always coming up with something different because that is what appeals to the gamers, to try out something new after they are done with the old. Nintendo is a huge success story that utilized the blue ocean strategy to be where they are now, especially with the release of the DS handheld a few years ago. People still use the name ‘Gameboy’ for various other gaming devices as well. It has become a generalized term because it was something different and easy to accept. The blue ocean strategy only helps to define the rules and regulation with which a businessman can launch a business. The authors have taken pains to separate and make the book easier to read and understand with examples from the real world and also examples of people failing at something and why it happened that way. Brand is not the key to success, it is the new that creates a path towards greater heights. ‎ Work Cited Chan, Kim and Mauborgne, Renee. Blue ocean strategy" How to create uncontested market space and make the competition irrelevant. USA: Your Coach Digital. Print. Read More