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The Blue Ocean-Strategy


 
The concept of the Blue Ocean Strategy was developed by W. Chan Kim and Renee Mauborgne at INSEAD Business School and was initially called Value Innovation. Based on empirical studies over a period of 15 years which were based on the analysis of more than 100 leading companies in more than 30 industries, it could be found examples of companies that have developed the new, previously untapped market segments and could thereby escape the previous competition.
 
Blue Oceans are understood as untouched markets or industries that have little to no competition. The one who would dive into the Blue Ocean, thus undiscovered markets or industries, would locate. This contrasts with the so-called Red Oceans. They describe saturated markets, characterized by tough competition and a high number of competitors, all of which offer more or less the same services or products.
 
Behind the concept of Blue Ocean Strategy is the idea that successful companies not based on competition but rather find their own innovative ways to create a "blue ocean" itself. Innovations open up new markets. Successful innovations often are not based on this technological innovation but rather on a novel design of the overall offering. This also and especially needs the effective use of existing knowledge resources.
 
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Blue Ocean Strategie