Blue Ocean Strategy

• Blue ocean strategyis a managementconceptthatprescribesthat organizations,ratherthangoing head-to-headwithcompetitors,try to createand exploitnew marketspaces,so-calledblueoceans.

• Blue oceans denote all the industriesnot in existencetoday – the unknown market space,unexploredanduntaintedby competition. Like the ‘blue’ ocean, it is vast,deep, and powerful – in terms of opportunityandprofitablegrowth.

• Blue ocean strategistsrecognizethatextra demandis out there, largelyuntapped,whichrequiresa shift of attentionfrom supplyto demand,from a focus on competingtoa focus on creatinginnovative valueto unlock new demand.Thisis achievedviathe simultaneous pursuitof differentiationandlow cost.

• As the marketstructureis changedby breakingthe value-costtradeoff, so are the rulesof the game.By expandingthe demandsideof the economy new wealthis created.Such a strategy,therefore,allows firms to largelyplaya non–zero-sum game,withhigh pay-off possibilities.

Blue OceanStrategy has helped Marvelturn aroundits business manytimes andwinsuccess ultimatelyin today’s business industry.Marvellaunchesblueocean at differentstages of its ongoingbusiness.In the earlystage, Marveltook a blue ocean turn by focusingon noncustomercollegestudents. Marvelinventedcharactersthatwere people first and superheroessecond: Spider-Man,TheHulk, Iron Man, etc. The businessthrived because of it. After bankruptcy,Marvelthen created a new type of blue ocean that wenton to produce the most profitablemovie franchise inhistory.