Question 1: What is the blue ocean strategy? Answer: Blue Ocean is a strategy where employees picking up their own designation from the job title basket or make their own job descriptions or owning their learning and development budget. A blue ocean strategy from the market or business perspective is conceptualized around five things: 1: It creates uncontested market space. 2: It makes the competition irrelevant. 3: It helps create and capture new demand. 4: It breaks the value cost trade-off. 5: Aligns the entire system of firm’s activities in pursuit of differentiation and low cost.
Question: 2: Why blue ocean strategy is implemented? Answer: A blue ocean strategy from the market or business perspective is conceptualized around five things: 1: It creates uncontested market space. 2: It makes the competition irrelevant. 3: It helps create and capture new demand. 4: It breaks the value cost trade-off. 5: Aligns the entire system of firm’s activities in pursuit of differentiation and low cost. On the same time to attract and retain talent in an organization and especially Gen X and Gen Y characteristics, it is pertinent for HR executives to continuously be innovative and democratic in terms of handling people. This is where the concept of creating blue oceans in people practices comes in by exploring the unexplored white spaces in HR along with examining the value and innovative practices create for the business.
Question: 3: How blue ocean strategy can give a competitive advantage to the company? Answer: Blue Ocean Strategy is about pursuing what we call Value Innovation - the simultaneous pursuit of differentiation and low cost. A company pursues Value Innovation by aligning three propositions. First, value proposition (utility minus price) by creating an offer that dramatically increases buyer utility at the right price for the mass of the market; Second, profit proposition (price minus cost) by creating a leap in value for the company itself by making tidy profits; Third, people proposition by practicing fair process and tipping point leadership.”
Question: 4: Which strategy model is followed by blue Ocean strategy? Answer: RBV (Resource based view) model is followed in blue ocean strategy. The blue ocean strategy is considered as RBV model because it deals with the man and its strategy start by analyzing the human resource power of the organization.
5: What is the advantage and disadvantage of blue ocean strategy? Advantage: Able to give their best per formations.
Change to their existing business practices. Politics often kick, economically they are strong.
Cost advantages. Placing potential imitators at an ongoing cost. Disadvantage: Head to head competitors. Market is about to reconstruction. It is difficult to estimate the number of people who will become ill or go for a leave.
6. What is the operational issue of the Ocean blue strategy? “Blue Ocean Strategy” is not helpful to management – don’t buy it and if you already have it dump it Management can and should be visionary in formulating strategy. But, contrary to the approach of Ocean Strategy, should do so by thinking about market environment shifts, how these could impact customer sets, and whether those customer sets are the ones you wish to serve Also contrary to Ocean Strategy, production cost reduction is best seen as an operational or resource issue – a barrier to be overcome not an end in itself as a tool of strategy. Resources are easier to acquire than customers. Production methods should match volume to minimize costs In your strategizing do not take advice on strategy from management who are not qualified to give advice and do not treat strategy formulation as an exercise in management team compromise – contrary to the Ocean Strategy method.
Question: 7: How can we minimize risk and maximize opportunities in Blue Ocean strategy? Answer: Minimizing risks & maximizing opportunities in formulation & executing blue ocean creation: 1: Formulation Principles: Reconstruct market boundaries Focus on the big picture, not the numbers Reach beyond existing demand Get the strategic sequence right