In this week’s reflection I’d like to focus on: ‘blue ocean strategy’ by applying four steps of reflection process which was presented by Daudelin (1996): a) articulation of problem; b) analysation; c) application of theories and d) explication of solutions.
What really is the ‘blue ocean strategy’?
In week 4’s reflective journal I’ve mentioned what Kim and Mauborgne (2004) suggested, the “blue ocean strategy” includes ‘development of the market and protection of own competitiveness to potential rivals, and focus on creating customer value and lower the company costs at the same time.’ I didn’t take this very serious, but I’ve realised that because we haven’t utilised this strategy well, so we’ve lost a lot of advantages regarding this strategy.
Thus, I want to reflect the problem relates to the implementation of the 'blue ocean strategy.'
a) In the last few rollovers, I’m always having a perception of the current market, which is a ‘saturated market’. It means I think the market doesn’t really have space for 'blue ocean'. b) I think the reason is what I’ve recognised from the beginning about the ‘blue ocean’ is wrong: space which has no competitions. Because I’ve framed in the circumstances that every market segment is having 4 to 5 companies competing already. I think there is no place to create ‘blue ocean’ and the boundary to enter a new segment is heavy. c) However, to deeply understand what Kim and Mauborgne suggested as ‘blue ocean,’ it is necessary to truly understand the example of Cirque which they’ve used in the article. Also, from other examples, nearly half of the ‘blue ocean’ company are created by incumbent company, and one key component for ‘blue ocean strategy’ is to create and capture new demand, by the meantime pursuit differentiation and low cost. (Kim & Mauborgne, 2004, p79) d) In terms of the MBs simulation, my definition of ‘blue ocean’ was a new market. However, after launching more bikes in the same market, I come to understand the other type of ‘blue ocean’ is to transfer existing costs with higher demand, in other words, utilise current company value to create and attract more customer. By differentiating the same type of product, there are more choices and opportunities to create more customer value. Although it is a bit late to implement ‘blue ocean strategy’, I think we will make sure to optimise this theory in the last few rollovers.
Daudelin, M. W. (1996). Learning from Experience Through Reflection. Organizational Dynamics, 24(3), 36–48. https://doi-org.ezproxy.auckland.ac.nz/10.1016/S0090-2616(96)90004-2,
Kim, W. C., & Mauborgne, R. (2004). Blue Ocean Strategy. Harvard Business Review, 82(10), 76–84. Retrieved from http://search.ebscohost.com.ezproxy.auckland.ac.nz/login.aspx?direct=true&db=buh&AN=14599913&site=ehost-live&scope=site