OVERCOME KEY ORGANISATIONAL HURDLES

Once a company had developed a blue ocean strategy with a profitable business model, it
must execute it. Any strategy of course must to challenge the exaction exist and plan ho to
overcome that execution. Blue ocean strategy represents a significant departure compared from
the status quo compared to the red ocean strategy. This is because company which in blue ocean
strategy need to come with the idea that make the competitive irrelevant in the market. Although
the blue ocean strategy make the company quiet strong in the market, but they face four hurdles.

One of the hurdles is limited resources. Resources are hardly to obtain nowadays since
there has a limited on it. Hence, the more company shift in this strategy, the more resources need
to be execute it. Second is political. The question is that is how the company suited with the
political issue in some country that they managed to enter into the market. Third hurdle is
motivation. This is how the management motivates the key player to move fast and break a status
quo. For sure, it will take years and of course management does not have that kind of time. Last
but not least, is cognitive. Cognitive is how to waking employees up to the need for a strategic
shift. Red oceans may not be the paths to future profitable growth, but they feel comfortable to
people and may have even served an organization well until now.
BARRIES TO IMITATION

Most of the blue ocean strategy brings with considerable barriers to imitation. A blue
ocean strategy will go without credible challenges for five to fifteen years. There is some of the
imitations barriers rooted in blue ocean strategy for example value innovation, brand image
conflicts, natural monopoly, huge economics of scale, network externalities, and also first to the market.

Come with first barriers to imitation which is network externalities. One of the easiest examples
is eBay where these companies enjoy in the online auction market. Network externalities also block
companies from easily and credibly imitating a blue ocean strategy. The more customers have online in
eBay website, the more attractive the auction site become to those supplier and buyers.

Next is huge economics of scale. The high volume of generated by a value innovation lead to
rapid cost advantages. This will be significantly placing potential imitators at an ongoing cost
disadvantages. Wall Mart for instance enjoyed the huge economies of scale have significantly
discouraged other companies from imitating its blue ocean strategy. Third one is natural monopoly where
it block other player from imitation due to the size of market cannot support these player. Example like
Kinepolis, a Belgian cinema company whereas this company set up the first megaplex in Europe and has
not been imitated for almost 15 years despite its enormous success.
Other than that, blue ocean strategy might give an impact of brand image conflict that prevents
companies from imitating this strategy. One example of brand image conflicts is The Body Shop which
promises of eternal beauty and youth, shunned beautiful models and also expensive packaging left major
of cosmetics action less over the years. Lastly of barriers to imitation is value innovations move does not
make sense based on conventional strategic logic. For instance, when CNN was introduced, other global
news like NBC, CBS, and ABC ridiculed the idea of twenty four hour, seven days, real time news without
star broadcasters.
 DIFFERENTATION BETWEEN BLUE OCEAN AND RED
OCEAN

I. Focus on current customers vs. focus on noncustomers. In most industries there is

little effort to attract new buyers to the industry, thus the focus on the customers
currently purchasing in that industry. In the Blue Ocean, there is a focus on trying
to increase the size of the industry by attracting people who have never
purchased in that industry.
II. Exploit existing demand vs. create and capture new demand. You will be creating
value so high that you will be attracting customers that never before would have
considered entering the market. Nintendos Wii appeals to families and seniors.
Attracted beer drinkers, Southwest Airlines appealed to auto travelers.
III. Beat the competition vs. Make the competition irrelevant. The competition
becomes irrelevant because they cannot duplicate the ideas in a way that is a
commercial success. Remember, the whole idea of Blue Ocean Strategy is to
have high value at low cost. If you are doing that, how can anyone compete with
you? All the would-be competitors fall by the wayside.
IV. Align the organization with differentiation OR low cost vs. aligning the organization
with differentiation AND low cost. You cant just say you are going to have
differentiation and low cost. You must search every nook and cranny of your
processes and organization to strip away unnecessary cost. The entire
organization must be aligned this wayanything that doesnt create or contribute
to value, gets eliminated or reduced. It is just the most efficient way to run an
organization whether in a blue or red ocean.
V. Compete in existing markets vs. Create uncontested markets to serve. For someone
to win, someone must lose. In uncontested markets, there is only a winner, you.
No one else is fighting for the business because either they dont know about it,
or they dont know how. They will try, of course, but if you have done things the
Blue Ocean Strategy way, they will not be successful for a very long time
VI. Make the value-cost tradeoff vs. break the value cost tradeoff. . It was understood
that you could not have both value and low cost. Kim and Mauborgne have broken
that concept and said that you can have high value and low cost and developed
the tools to do it. In fact, if you dont break the value cost tradeoff, competitors will
easily duplicate what you are doing and the ocean will once again be very red