“Blue Ocean Strategy(BOS): Creating Value, Appreciation and Application in Asia region”
Jeong Chun phuoc, 1st Feb 2011
Blue Ocean Strategy(BOS) is an enhancement over the obsolete conceptual understanding of Red Ocean Strategy(ROS). BOS renders all the components in ROS irrelevant and non-quit-essential in current understanding of competition.
Clash of Philosophy between ROS and BOS
At the outset of competition, Red Ocean Strategy(ROS) emphasizes competition in existing marketplace and for adoption of competitive strategy which could beat the competition.
It calls for the full exploitation of existing market demand-an analysis of the Supply and Demand economic analysis.
At the upper echelon of management perspective, Red Ocean Strategy demand the alignment of a company’s system by worshipping either the choice of differentiation(CoD) or opting for the low cost(Lc) advantage.
BOS is at the other dimension. Blue Ocean Strategy is all about ‘value creation’ and ‘direction alignment’ in contemporary perception of competition which have floundered miserably in the aftermath of 2009 Global Financial turmoil snowballed by the US’s own Financial Crisis 2009 prompting the establishment of the US Commission of Inquiry and the production of the damming 2011 US Financial Crisis Report(In “Financial crisis hits trust in political parties – report”, Dave Graham and Alison Williams, it was quoted that The 2010 Global Corruption Barometer by Berlin-based watchdog Transparency International (TI) showed that 79 percent of respondents in a global study believed parties were “corrupt or extremely corrupt”, up from 69 percent in 2009 — “, at
These are just two examples which sent the advocates at Cambridge, Yale and Harvard scrambling for answers. BOS strives to change all these by providing new directions towards a higher level of governance, accountability and perhaps transparency in market competition in terms of 15 million unemployed Americans quoted by YaleGlobal Online as at Feb 2011 and a yawning US budget deficit which has widen to a whopping US1.48 trillion according to close estimation. Under these circumstances, can US’s AAA credit rating be sustained by false or anti-BOS rating led by Moody, Standard and Poor,etc. Maybe a dynamic tax initiative may provide some relief ‘”an issue raised by Jeffrey Sachs in The Guardian in reference to the strategic use of America’s taxation tool.
Jeong Chun Phuoc
Expert Consultant and a pioneer advocate in Competitive Legal Intelligence(CLI)
and a Reader in Competitive Syariah Intelligence(CSI)
He can be reached at [email protected]
**The above professional analysis is the writer’s personal view and in no way represent the view/position of the research institutes/thinktanks/organisations to which he is currently attached to.