Global Economy In Need of Blue Ocean Strategies
By Brendan Murphy
It seems in our nation’s current economic state the red oceans of competition are only becoming more red. The opportunity to “think outside the box” and apply Blue Ocean Strategy is now more relevant than ever.
In Brian Shaheen’s, AdvertisingAge “Rethinking Blue Ocean Strategy in a Down Economy” the associate professor at Syracuse University’s S.I Newhouse School of Public Communications stresses the importance of extraneous strategies.
But, Shaheen goes on to say, “The entire global economy today requires Blue Ocean Strategy. It requires going into a whole new space — a whole new space in your mind, in your corporate strategy, in your corporate tactics — to do well, to prosper."
In this recession it is essential to reconstruct the market boundaries. It is time to focus on value innovation that simultaneously creates differentiation and low cost.
So who is using BOS in this recession? Is it working?
The state of Louisiana landed its first manufacturing complex, a testing center for one of the world’s largest video game developers, as well as a start up auto manufacturing plant.
Advocate Business writer Gary Perilloux writes, “One common thread is knit into the ventures. They represent jobs in sectors largely new to Louisiana, sectors that could yield far more jobs if the state cultivates the companies the right way.”
Stephen Moret, the state’s economic development secretary feels Louisiana’s Blue Ocean Strategy will be one that sets the state apart for new markets not fully exploited by other states.
Essentially, Louisiana will get more jobs by offering a business climate where BOS-minded companies can excel.
Here is another relevant business example.
AOL’s merger with U.S media giant Time Warner in 2002 is regarded as one of the worst in corporate history. The stock values plummeted.
The problem with the merger is they began chasing Google, Microsoft and Yahoo in the push for web advertising models—essentially playing catch up with players that dominate this red ocean.
After many of the company’s top people read Blue Ocean Strategy, AOL Europe’s CEO Dana Dunne explained, “We created work groups that brought people together under the same premise – really thinking Blue Ocean Strategy for our business. And then, as a result of this exercise, after months and months of it, a number of things came out that were really beneficial for the business.”
The adjustment in strategy as a result of BOS has led to a new web section called Eleven and a new mind set.
Dunne has the confidence in the company’s turn around and Blue Ocean breakthrough as quoted, “I can’t disclose the specific ideas right now. But there is one idea we are pushing which will, if it goes ahead, differentiate ourselves.”
Brendan Murphy is the Marketing Manager for Strategize Blue (www.strategizeblue.com), a Blue Ocean Strategy Training and Consulting company based in San Diego. He works under Dr. Zunaira Munir, the internationally exclaimed expert and keynote speaker on Blue Ocean Strategy.
