The thought for writing this post came to my mind after I saw this graph given below and I was astonished to see the difference between two strategies and decided to figure out the reasons.
Profit and growth consequences of Blue Ocean Strategy:
Some of the obvious reasons are that it is always difficult to innovate and easy to copy and adapt (the follower position in Marketing Warfare). Implementing Blue Ocean Strategy requires lot of capital and time to get the desired R.O.I. or an absolutely amazing idea (which is very rare). Such an investment can be made by handful of companies and many of them would not be interested in doing so. In the end it boils down to two things that are required Resources and Motivation to break the status quo.
I am strong believer in one theory of economics that market balances itself and the current ratio is in equilibrium, where some companies are going for niche products while others are following the follower strategy. The competition is increasing at a fast pace and it looks like the share of Blue Ocean Strategies will increase as the demand to innovate is higher than ever now.
Well written. You are right when you say that share of Blue Ocean will increase.
ReplyDeleteAthough the book has been widely accepted yet there are few people who doubt this concept itself.