Can you find an article that either extends, challenges, or refutes the value in

Question

Can you find an article that either extends, challenges, or refutes the value innovation/blue ocean analysis approach to strategy and growth. The goal is to find an article that can stimulate discussion about the strengths and weaknesses of the value innovation approach to strategy.

NEED a Reference for citation of the source!!

1. Provide a synopsis of an article in 100-150 words

2. Provide an analysis of the article based on the course topics (Formulating and Executing Value Innovation Strategies)

Explanation / Answer

Ans. Blue Ocean Strategy--
Blue Ocean Strategy was developed by W. Chan Kim and Renée Mauborgne. They observed that companies tend to engage in head-to-head competition in search of sustained profitable growth. Yet in today’s overcrowded industries competing head-on results in nothing but a bloody red ocean of rivals fighting over a shrinking profit pool. Lasting success increasingly comes, not from battling competitors, but from creating blue oceans of untapped new market spaces ripe for growth.

Key factors of this strategy or say strengths are :
a. It is grounded in data.
b. It pursues differentiation and low cost.
c. It creates uncontested market space.
d. It empowers you through tools and frameworks.
e. It provides a step-by-step process.
f. It maximizes opportunity while minimizing risk.
g. It builds execution into strategy.
h. It shows you how to create a win-win outcome.

various risks involve in this strategy are :
a.Ignoring relevant competition-
The main advice of blue ocean strategy is to create uncontested market space and make competition irrelevant. It recommends managers and entrepreneurs to come up with new ideas for products, services and strategies rather than mimicking those of competitors, thereby limiting immediate competition.

b.Reinventing the wheel-
A second risk with companies that only think blue ocean is that they ignore already upcoming products and services and differences between products in the market. When not used carefully, Blue ocean strategy tends to take the average offerings of the industry as the benchmark.

c.Swimming too far-
A third risk with taking blue ocean strategy too serious is that it may stimulate companies to go into markets that are too far off their own competences. By being stimulated to be creative and think different, companies following a blue ocean strategy may forget about their own history, strengths, and path dependent competences.

d.No fish-
A final risk of blue ocean strategy is that it can lead companies to oceans that are blue for a very good reason. Oceans can be dead, empty, and impossible for most species to survive in. Along the same line ‘markets’ may be uncontested for a very good reason: because there is no market.

Conclusion :

1.Creating Blue Ocean is not alone sufficient.Blue Ocean is not a permanent achievement.
2.Conflicts on brand image prevents companies from
imitating blue ocean strategy.
3.Blue ocean strategy challenges brand image of other companies.
4.The company gets involved so badly in the competition that it forgets the buyer completely.

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