In changing dynamics of business there is win-lose competition to survive & exist in market. Today, most of the industries are using various cost reduction techniques to reduce its cost & provide more values to their customer, but if we see these business from top view (machine drawing way) they all are roaming around the bush.
Niche or innovation is way to maintain one’s supremacy and leadership in market. Due to this a new concept of Strategy evolved called
Red Ocean: a brutal battle field where you have to fight for 
survival otherwise you will die. Every company tries to outperform to grab more market share and due to this space gets crowded and prospects for profit & growth are reduced. In the mean time product turns into commodity and intense competition turns the water bloody
Blue Ocean: deep fresh water without any boundaries & restrictions. In 
business management terms, a new virgin market where there is no restriction, no boundary limit & no competition.
According to Blue ocean strategy, either you create new market, new industry (which happens with great innovation & inventions) or create blue ocean in existing red ocean by crossing the boundaries of industry.
The figure given below is similar to the PLC (product life cycle) but it’s an organization development life cycle where u can put any organization & compare its development with change in time.
Fig: Organization development life cycle(ODLC)
Let’s put Google in above graph, it started in September, 1998, as search engine & tied up with 
great biggies & with the success of search engine & advertising, in 2006, Google search captured the market share of 50.8%, yahoo (23.6%) & live search (8.4%) & others (17.4 %).
Every year it introduced new product and gave full time to its users to get accustomed to it. After hit of Google search it launched Gmail, orkut. From the last six years Google has been making its brand image for its users & it was such success that we were searching a person who have Gmail account because it was a prestige for any net savvy person to have an account on Gmail.
From the story of Google I would like to add that continuous development & innovation required to follow the above ODLC (org. development life cycle).
Another example is of Steve job’s , Apple. In initial years of its computer launch it was huge success but later on its process was perfectly copied by Microsoft and presented in much better & customer friendly way to the customer and grab major share of APPLE computer’s market. But that was not the end, Apple applied game theory & blue ocean strategy and target new market segment – entertainment and reenters with APPLE i-pod was a huge success
Other Successful blue ocean strategy examples are :
- Starbucks (coffee as low-cost & luxury for end consumers)
- Dell’s built-to—order computer
- Disney’s full length animated movies
- Sony walkman
- Orkut.com
- Himalyas LIV52 (medicine)
- Paras pharmaceutical
- Mumbai Dabbawala ………………………
“ Success of Blue ocean strategy depend upon managers & CEOs”
IS IT TRUE………Just think about it
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