Reference no: EM131397913

The Blue Ocean Strategy was created by W. Chan Kim and Renée Mauborgne. It is based on the simultaneous pursuit of differentiation and low cost. The Blue Ocean Strategy suggests that companies are better off searching for ways to gain "uncontested market space" than engaging in traditional competition. In other words, organizations should find a way to work in a marketplace that is free of competitors. Entrepreneurs and businesses should consider the Four Actions Framework when entering a blue ocean which include raise, eliminate, reduce, and create. They need to consider what factors should be raised well above the industry's standard. They need to know which factors that the industry has long competed on should be eliminated. They need to realize which factors should be reduced well below the industry's standard. They also need to discover which factors should be created that the industry has never offered. The main focus of the Blue Ocean Strategy is not to focus on battling competitors but to make the competition irrelevant.