Friday, July 2, 2010
Review of a Blue Ocean Strategy Article
In the given article the author attempts to review a Blue Ocean Strategy article from Ebsco. The link of the original article is given below:-
Chaotic Blue Ocean Strategy
By Hilary beckar
Chaotic Blue Ocean strategy is an article written by Hilary beckar from Carleton University (published in the “Review of business Research”, Nov 2008 edition ) .The article talks about the relationship between the theory of chaos and Blue ocean strategy.
Type of the Article: - Description Based
The article “Chaotic Blue Ocean” is fundamentally a theoretical article that does not only attempts to view Blue Ocean strategy( hence forward referred as BOS) in relation to theory of chaos but also describes BOS in an elaborative way. Any one going through the article will get a very fresh understanding of BOS.
According to theory of chaos there is chaos everywhere, even the most deterministic systems (where the final outcome depends on the initial conditions) cannot be predicted for the long term. The business world itself is not insulated from this chaos, it is highly dependent on the environment where it operates, the kinds of micro as well as macroeconomic changes that keep on happening , changes in the demographics ,changes in the technologies and govt. regulations etc make the business world highly vulnerable . Under such changing environment it becomes very essential for corporate to come with newer strategies. It had been seen that in order to make higher profits & to resist changes Corporate often come with “READ OCEAN STRATEGY” where it tries to outperform its competitors on account of product differentiation and cost leadership. This entire process ends up in great wastage of resources.
The author giving the reference of the blue ocean strategy book argues that rather than going for a competitive warfare the company should adopt BOS that can enable them to capture newer customer segments in an entirely non competitive space. Three very important points that makes a strategy BOS are-
1> It must focus on giving new Innovative solutions to the customers at efficient price.
2> It must capture the non customer base of the company.
3> While formulating the strategic framework the term competition should never be considered.
The article though gives some basic idea of the frame works which are used in the formulating a “BOS” strategy but avoids delving deep into it. One of the drawback of the article is that it doesn’t give any practical example to demonstrate the concept in a more better way. In general the article is a good read for anyone who wants to have a firsthand knowledge of “BOS”. It could be liked equally by managers, students and academicians.