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Comparing Flowing Stream Strategy and Blue Ocean Strategy

Chapter
Part of the Management for Professionals book series (MANAGPROF)

Abstract

A major strategic framework that acted as inspiration for evolution of flowing stream strategy is blue ocean strategy. The blue ocean strategy, rather than taking competition as the benchmark, uses the strategic logic of value innovation. It is a radical and discontinuous change strategy that makes the competition irrelevant by enhancing the value with a big leap and opening up new and uncontested market space. Such dramatic improvement in the value, both for the customers and the company, is made possible through radically different products or services. Some glaring examples of important blue oceans created in the past are the Model T by Ford and small, fuel efficient Japanese cars in the automobile industry; the electronic computer, the PC, and the Internet in the computer industry; and host of innovative services such as low-cost airlines (Southwest Airlines) and partly owned aeroplanes (NetJets).

Keywords

Strategic Action Strategic Change Strategic Factor Strategic Flexibility Market Space 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

References

  1. Ansoff, H. I. (1965). Corporate strategy: Business policy for growth and expansion. New York: McGraw-Hill.Google Scholar
  2. Kim, W. C., & Mauborgne, R. (2005). Blue ocean strategy: How to create uncontested market space and make the competition irrelevant. Boston: HBS Press.Google Scholar
  3. Porter, M. E. (1985). Competitive advantages: Creating and sustaining superior performance. New York: The Free Press.Google Scholar

Copyright information

© Springer India Pvt. Ltd. 2013

Authors and Affiliations

  • Sushil
    • 1
  1. 1.Department of Management StudiesIndian Institute of Technology DelhiNew DelhiIndia

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