blue ocean strategy
it was an interesting article in the harvard business review.
Description:
"Despite a long-term decline in the circus industry, Cirque du Soleil profitably increased revenue twenty-two-fold over the last 10 years by reinventing the circus. Rather than competing within the confines of the existing industry or trying to steal customers from rivals, Cirque developed uncontested market space that made the competition irrelevant. Cirque created what the authors call a blue ocean--a previously unknown market space. In blue oceans, demand is created rather than fought over. There is ample opportunity for growth that is both profitable and rapid. In red oceans--that is, in all the industries already existing--companies compete by grabbing for a greater share of limited demand. As the market space gets more crowded, prospects for profits and growth decline. Products turn into commodities, and increasing competition turns the water bloody. There are two ways to create blue oceans. One is to launch completely new industries, as eBay did with online auctions. But it's much more common for a blue ocean to be created from within a red ocean when a company expands the boundaries of an existing industry. In studying more than 150 blue ocean creations in over 30 industries, the authors observed that the traditional units of strategic analysis--company and industry--are of limited use in explaining how and why blue oceans are created. The most appropriate unit of analysis is the strategic move, the set of managerial actions and decisions involved in making a major market-creating business offering. Creating blue oceans builds brands. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades."
it is an interesting concept. however, it is quite sad that in singapore, venturing into the unknown isn't encouraged. oh ya... the government does yak a lot about entrepreneurship and all that jazz, but really... think about it. it is a working example of cognitive dissonance. all life long, the citizens are brainwashed with the mantra "the gahmen (aka the party in power) is your father and mother. obey the gahmen and follow the rules. do what we tell you to do. go against us and we'll crush you (not literally la.. just a few lawsuits that will leave you feeling worthless since we have decided that a person's self worth shall be determined by the amount of money he/she has)" ok.. that was a long parenthesised comment. heck it. you know what i'm getting at. i do think that singapore is really small and the only way to attain economies of scale is by filtering the population into certain key industries. but the key to a good investment portfolio is diversification and not to dump all your eggs into 3 or 4 baskets. oh well, the government has its job cut out for it. anyways i digress. my point was that the government propaganda emphasises obedience. follow the path that has been laid for you. inconsistent with innovation and that pioneering spirit that are needed for blue ocean entrepreneurship innit?
Description:
"Despite a long-term decline in the circus industry, Cirque du Soleil profitably increased revenue twenty-two-fold over the last 10 years by reinventing the circus. Rather than competing within the confines of the existing industry or trying to steal customers from rivals, Cirque developed uncontested market space that made the competition irrelevant. Cirque created what the authors call a blue ocean--a previously unknown market space. In blue oceans, demand is created rather than fought over. There is ample opportunity for growth that is both profitable and rapid. In red oceans--that is, in all the industries already existing--companies compete by grabbing for a greater share of limited demand. As the market space gets more crowded, prospects for profits and growth decline. Products turn into commodities, and increasing competition turns the water bloody. There are two ways to create blue oceans. One is to launch completely new industries, as eBay did with online auctions. But it's much more common for a blue ocean to be created from within a red ocean when a company expands the boundaries of an existing industry. In studying more than 150 blue ocean creations in over 30 industries, the authors observed that the traditional units of strategic analysis--company and industry--are of limited use in explaining how and why blue oceans are created. The most appropriate unit of analysis is the strategic move, the set of managerial actions and decisions involved in making a major market-creating business offering. Creating blue oceans builds brands. So powerful is blue ocean strategy, in fact, that a blue ocean strategic move can create brand equity that lasts for decades."
it is an interesting concept. however, it is quite sad that in singapore, venturing into the unknown isn't encouraged. oh ya... the government does yak a lot about entrepreneurship and all that jazz, but really... think about it. it is a working example of cognitive dissonance. all life long, the citizens are brainwashed with the mantra "the gahmen (aka the party in power) is your father and mother. obey the gahmen and follow the rules. do what we tell you to do. go against us and we'll crush you (not literally la.. just a few lawsuits that will leave you feeling worthless since we have decided that a person's self worth shall be determined by the amount of money he/she has)" ok.. that was a long parenthesised comment. heck it. you know what i'm getting at. i do think that singapore is really small and the only way to attain economies of scale is by filtering the population into certain key industries. but the key to a good investment portfolio is diversification and not to dump all your eggs into 3 or 4 baskets. oh well, the government has its job cut out for it. anyways i digress. my point was that the government propaganda emphasises obedience. follow the path that has been laid for you. inconsistent with innovation and that pioneering spirit that are needed for blue ocean entrepreneurship innit?
