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Renée Mauborgne may not BE as well known as Bill Gates or Jack Welch, or even Michael Porter, but there is one area where she leaves all three far behind. Consider this: her book, Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant, co-authored with W. Chan Kim, has been translated into 41 languages globally. Compare this with 25 languages for books by Gates, 27 and 29 for Welch and Porter respectively , and you realise just how popular the book has grown to be in the last few years. It may seem like stating the obvious, but as supply outstrips demand in various markets and product categories, it has become essential for companies to find newer ways to compete and create strategies for new markets. "Blue Ocean Strategy is not only about how to tap new markets or uncontested spaces but about how to compete and create strategies in existing markets which offer a leap in value to the consumer," says Mauborgne. She uses Nintendo's now revolutionary video game, Wii<http://economictimes.indiatimes.com/Features/Corporate_Dossier/How_to_create_uncontested_market_space/rssarticleshow/3554185.cms#>, as an example of how a company can use the blue ocean strategy to succeed in a crowded marketplace . Till the Wii was launched in November 2006, video games were aimed at what she calls — for lack of a more succinct description — 'anti-social young boys and girls' . Most were violent games which had the gamer spending hours plonked in front of a screen (ideally, a high definition one so that the graphics were optimised), with minimal interaction with other people. "The Blue Ocean Strategy comes through when you turn long held ideas and beliefs on their head, and that's what Nintendo did," she says. The new game requires people to be on their feet as they play games like tennis or golf on their Wii's , and it's marketed as a game that brings families together. The best part — Nintendo makes a profit of $40 on every console sold, compared to Sony which actually loses $240 on each Playstation 3 (PS3) it sells. Sony makes the money on the software, but the PS3 console is basically is a loss making product. This example, says Mauborgne, adheres to all the essential principles of a Blue Ocean Strategy. "It grew the demand for the product from the existing set of gamers to tap into a second tier of people who would perhaps be more inclined to playing a sport over a video game, and even a third tier like parents or grandparents," she says. A product or service has to compete, not only for existing consumers, but also new ones. The Wii has moved the competition to a new level, no longer fighting for the same lot of gamers as a Sony Playstation or Microsoft Xbox. In the process, it reduced cost through 'value innovation' which is the cornerstone of Blue Ocean Strategy — doing something which makes competition irrelevant. http://forums.investorline.co.in/ --~--~---------~--~----~------------~-------~--~----~ Get latest market updates & search internet right from your browser-download our toolbar here- http://investorline.ourtoolbar.com/ Visit our site at – http://investorline.co.in/ Newsroom: http://newsroom.investorline.co.in/ Learning Center- http://learning.investorline.co.in/ Mutual funds - http://mutualfunds.investorline.co.in/ Life Insurance - http://insurance.investorline.co.in/ Investor Journal - http://research.investorline.co.in/ Newscatcher- http://catcher.investorline.co.in/ Interested in Financial Planning-Let us Contact you- http://spreadsheets.google.com/viewform?key=pb_z4f1_zGMg4iBBFT3-SWQ&email=true If you like the site then promote it here- https://www.freetellafriend.com/tell/?url=http://investorline.co.in/blogs/news Create your own free blog on- http://investorline.co.in/blogger Visit this group at http://groups.google.com/group/india-investor -~----------~----~----~----~------~----~------~--~---
