The Six Paths Of Blue Ocean Strategies Permits Management To

The Six Paths Of Blue Ocean Strategies Permits Management To Concentra

The Six Paths of Blue Ocean Strategies offers a framework that enables management to identify and create uncontested market spaces, or "blue oceans," by challenging and reshaping industry boundaries. This approach involves six distinct methodologies that examine and redefine various aspects of market positioning, ultimately guiding organizations away from overly competitive "red oceans" and toward innovative, value-creating opportunities. Central to this strategy is the idea of reconstructing market boundaries by questioning traditional assumptions and exploring new demand sources.

The first path, “Industry,” encourages companies to look beyond their current industry confines and consider alternative industries that can serve as potential markets. For instance, Apple, recognizing the limitations within the traditional consumer electronics market, expanded into mobile devices and digital content services, creating new demand. By doing so, Apple shifted the competitive landscape and created a blue ocean that capitalized on technological innovation and consumer trend shifts.

The second path, “Strategic Management,” involves analyzing the core elements of offerings such as quality, price, and performance. Apple exemplifies this by ensuring their products are compatible across platforms, offering original designs, and creating complementary ecosystems like iTunes and the App Store, which foster customer loyalty. The launch of the iPad in 2010 showcased this strategy; despite skeptics, sales soared to 28 million units within a year, highlighting how strategic focus on portability, usability, and affordability can open new market spaces (Kawamoto, 2011).

The third approach, “Look Across the Chain of Buyers,” suggests considering various members within the buying process—purchasers, users, and influencers—who may have different needs and values. Apple mainly targets end-users of the iPad for personal use, but expanding sales to educational institutions or libraries through bulk purchasing strategies could tap into new customer segments that were previously unconsidered.

The fourth path, “Look Across Complementary Product and Service Offerings,” advises companies to consider the entire solution package that consumers seek. Apple’s comprehensive ecosystem, including hardware, software, and third-party accessories, enhances user experience. However, customization options are limited, presenting an opportunity to develop features like customizable interfaces or solar-powered accessories to deepen the product's value and appeal to a broader user base.

The fifth path, “Look Across Functional or Emotional Buyer Groups,” emphasizes understanding and balancing the functional utility with emotional appeal. Apple’s premium pricing and emphasis on design and brand image appeal emotionally. To gain cost advantages and broaden appeal, Apple could reduce emotional design elements, such as packaging, focusing more on functional benefits—potentially lowering prices and expanding market share through cost leadership.

The sixth path, “Look Across Time,” involves anticipating future trends and technological changes that could impact industry dynamics. Apple invests heavily in patents related to health, security, and sustainability, such as sensor technologies for medical emergencies and solar charging capabilities, positioning the company to adapt and innovate in response to emerging trends and societal demands.

Addressing non-customers is crucial for expanding market share. Kim and Mauborgne (2006) highlight the importance of reaching beyond existing demand by considering non-customers at different tiers. The third-tier non-customers—those who abstain from purchasing tablets due to price, technology, or branding—represent an untapped market. Strategies to attract this group include customizing the iPad, offering bundled pricing with other Apple products, and expanding retail distribution channels like Best Buy or Walmart. Simplifying the device’s interface for children and seniors, with larger fonts and engaging applications, could further broaden the customer base, creating new demand spaces.

Conclusion

The Blue Ocean Strategy’s six paths provide a comprehensive approach to innovation by examining industry boundaries, customer segments, value propositions, and future trends. Apple’s example demonstrates how this strategic framework can be applied to create sustainable competitive advantages by exploring new markets, enhancing product offerings, and addressing emerging societal trends. The deliberate application of these paths enables organizations to shift from competitive battles in crowded markets to pioneering new demand spaces, ensuring growth and profitability in dynamic environments.

References

• Kawamoto, D. (2011). Apple’s iPad: The New Tablet Market. Harvard Business Review.
• Kim, W. C., & Mauborgne, R. (2005). Blue Ocean Strategy. Harvard Business School Publishing.
• Kim, W. C., & Mauborgne, R. (2006). Blue Ocean Shift. Harvard Business Review Press.
• Porter, M. E. (1980). Competitive Strategy. Free Press.
• Kim, W. C., & Mauborgne, R. (2014). Blue Ocean Strategy, Expanded Edition: How to Create Uncontested Market Space and Make the Competition Irrelevant. Harvard Business Review Press.
• Anderson, J. C., & Fransen, J. (2014). Creating New Market Space: The Role of Strategic Innovation. Strategic Management Journal, 35(1), 123-142.
• Osterwalder, A., & Pigneur, Y. (2010). Business Model Generation. John Wiley & Sons.
• Levy, M., & Weitz, B. (2012). Retailing Management. McGraw-Hill Education.
• Govindarajan, V., & Trimble, C. (2010). The Other Side of Innovation. Harvard Business Review Press.
• Christensen, C. M., & Raynor, M. E. (2003). The Innovator’s Solution. Harvard Business School Publishing.