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Blue Ocean Strategy

R. Sindhu, Assistant Professor, MBA Department Loyola Academy Degree & PG College Secunderabad, Telangana State, India - 500010. , R. Sindhu

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Journal of Social Welfare and Management 10(2 (Special Issue)):p 237-242, May-August 2018. | DOI:

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Abstract

This paper is to further the study on Blue ocean strategy. There is always a need for sustainable profitability and growth in Business. This paper tries to further understand one of the strategies developed by Kim and Mauborgne to increase profitability. This concept puts forth a shift of attention from supply to demand, from a focus on competing to a focus on value innovation – that is, the creation of innovative value to unlock new demand. This is achieved via the simultaneous pursuit of differentiation and low-cost, the blue oceans stand for completely new and undiscovered markets and opportunities with new value creations, new customer bases and no competition. A company that plans to use the Blue Ocean Strategy must be aware, that the creation of Blue Oceans is a dynamic process and not a single task of implementing a strategy. A reason for this is the fact that sooner or later, competition will arise in new created uncontested markets. Companies should adopt innovative strategies to venture into new markets, to create new demand, and to create the best value proposition.

Keywords: Blue Ocean Strategy; Value innovation; Market space; Competition


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