Blue Ocean Strategy Table of Contents Table of Contents 2 A Brief Analysis of Strategy Formulation and Implementation 3 Role of Blue Ocean Strategy in Strategy Formulation and Implementation 4 Works Cited 6 A Brief Analysis of Strategy Formulation and Implementation The aspect of strategy formulation fundamentally includes the functions of effective planning as well as decision-making that are engaged for the purpose of progressing along with advancing the strategic objectives and plans of a particular business organization. The notion of strategy formulation is also regarded as an entrepreneurial action that is generally based upon the strategic procedure of decision-making.
The aspect of strategy implementation is a kind of rational method that mainly emphasizes upon the effectiveness of the business strategies that are adopted by the business organizations (Karami, A., “Strategy Formulation in Entrepreneurial Firms”). The idea of strategic implementation generally engages certain effective procedures that mainly assist or support towards executing the various strategic plans of a business organization. The conception of strategic implementation is also denoted as a managerial task that is normally based upon the decisions relating to business strategies along with operations.
For the successful execution of the strategic plans, it is essential for the business organizations to focus largely upon their prevailing working cultures along with overall managerial system of the entire business organization (Smit, P. J., “Strategy Implementation: Readings”). Role of Blue Ocean Strategy in Strategy Formulation and Implementation Blue Ocean Strategy is generally regarded as a business strategy that portrays certain major aspects which ultimately benefit the business organizations for the purpose of making high profits along with forming superior business advancements. In this connection, the strategy formulation as well as implementation of Blue Ocean generally deals with certain important facets that include generating unchallenged market space, making the business market competition immaterial along with generating and detaining new demand for the commodities or products (Kim & Mauborgne, “Toward Blue Ocean Strategy”). According to Blue Ocean Strategy, the business organizations or the different industries cannot sustain their superior business performances by greatly competing among themselves in the challenging marketplace.
The strategy mainly formulates upon generating and competing especially in the unchallenged market spaces for the purpose of preserving the superior business performances of the industries or organizations.
Moreover, Blue Ocean Strategy is fundamentally focused upon the demand factor and signifies that in order to generate new wealth along with to possess greater payoff possibilities, it is necessary for the business organizations or industries to create as well as to detain new demand for the products. In this connection, from the perspective of Blue Ocean Strategy, the demand of the products is largely generated instead of fought over (Kim & Mauborgne, “Toward Blue Ocean Strategy”). It has been observed that the major objective of the Blue Ocean Strategy is not to out-perform the business competition in the existing industry but to generate new business market by making the business competition immaterial.
Furthermore, the business strategies that are formulated under the Blue Ocean Strategy also emphasizes largely upon the factor of differentiation along with offering low cost products simultaneously. According to the viewpoint of the Blue Ocean Strategy, the business organizations can attain greater worth towards their large base of customer levels by introducing the significant strategy of differentiation along with offering low cost products.
Perhaps, the most important facet of the Blue Ocean Strategy is that it discards the general principle of conventional business strategy i. e. the aspect of trade-offs subsists between value and cost. It is for this particular reason that the Blue Ocean Strategy is viewed as an effective business strategy which takes into consideration the thinking of ‘re-constructionism’ as well (Kim & Mauborgne, “Toward Blue Ocean Strategy”). Works Cited Karami, Azhdar. Strategy Formulation in Entrepreneurial Firms Ashgate Publishing, Ltd. , 2007. Kim, W. Chan & Mauborgne, Renee. “Toward Blue Ocean Strategy”. April 13, 2012. Blue Ocean Strategy, 2004.
Smit, P. J. Strategy Implementation: Readings Juta and Company Ltd, 2000.