Blue ocean strategy report Essay Example | Topics and Well Written Essays - 750 words

Blue ocean strategy report - Essay Example The book Blue Ocean Strategy urges the readers to revisit their basic strategy in trying to run a successful business and acquire a favourable profit while competing with similar companies/ businesses in the market who are offering the same products or services to a limited pool of clients. Ever since people have started doing business, they have been engaged in competition with other companies and have fought over market share and sustained profitable growth. This book deals with two separate market spaces, which are referred to as the â€Å"Red Ocean† and the â€Å"Blue Ocean† respectively. The Red ocean is comprised of all recognized industries also called ‘the known market’ (Kim & Mauborgne, 2015). This market has industry boundaries that are properly defined and rules of competition that is clearly understood. Here, the companies try to outdo their competition in a bid to capture a bigger share of the available market. However, with an increasing number of companies opening up, the market space starts to become saturated and the margins of profit and growth are diminished. This creates a tensed and complex competition in the market (Kim & Mauborgne, 2015). On the other hand the blue ocean represents an unexplored market place; it comprises of those industries that do not exist presently and an unknown market space is present where the competition ceases to exist. The blue oceans offer greater prospects of growth and profit of the company as it simply makes the competition irrelevant. There are no hard and fast rules of competition in this market place due to an absence of competitors. This market opens up new avenues for businessmen to explore where the profit, the market, and the clients are shared with little or no competition (Kim & Mauborgne, 2015). The Blue Ocean Strategy has been applied in the real world with great success; a few examples are Southwest Airlines as it became the world’s first low cost