Porter Model vs Blue Ocean Strategy


Blue Ocean Strategy

Porter Model vs Blue Ocean Strategy

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cheng hsin zhen, Student (Other), Malaysia
Does anyone know about the differences between Porter's (5 Forces, Competitive Advantage) Strategy Model and Blue Ocean strategy?

Porter's Strategy Model vs Blue Ocean Strategy
Oliver, Other, Kenya
Hi all, in my opinion, the Blue Ocean strategy refers to a strategy undertaken by an organization in a new dimension or area in which its competitors haven't ventured into. Hence in essence the organization creates its own new market. Porter's strategy model seems to focus more on what makes an organization competitive in existing (red) markets.
BOS versus Five Forces
farooq omar, Strategy Consultant, Pakistan
Yeah, I totally agree that BOS is actually the methodology of creating tactics of deploying plans and strategies that exploit and discover new consumers by creating awareness of unexplored needs & how to value and perceive its value. The most important part is how to create multi layered tactical plans through use of innovative cost-time-activity efficient process. BOS is not confined to marketing alone, rather its a integrative effort of all functions & operations of an entity. Its benefits are through perfect organizational alignment. That's BOS.
Key Difference between Porter Strategy and Blue Ocean Strategy
Mauricio Crippa, Manager, Brazil
In my opinion, the main difference is that Porter warns you for being 'stuck in the middle'. Either you choose differentiation or cost leadership; you can't choose both strategies at the same time.
While BOS recognizes to reach a blue ocean you need to do BOTH.
Toyota, for instance, during the 80's, proved is possible to apply both strategies.
BOS Could Be Used to Manage Porter's Five Forces
felix owolabi, Student (University), United Kingdom
There is a major difference between the two, in that Porter's model is concerned with the micro-environmental factors affecting businesses within the same industry. Factors such as competitive rivalry, new entrants, buyers' and suppliers' influence, etc. are factors which when conquered would not necessarily make you a market leader, since one of the criticisms of this model is that: businesses are not always in a web as suggested by Porter.
Adopting a BOS strategy, if succesful, would make you a business leader whereas Porter's model would only deliver you into the "red ocean". Nonetheless, you can leap back into the Blue Ocean through lateral thinking (thinking outside the box) and by being aggressively innovative.
Value Innovation and Porter
Ruzan Ahamed, Analyst, Sri Lanka
@Mauricio Crippa: Indeed value innovation, the simultaneous pursuit of differentiation and low cost is what exactly Michael Porter explained as "stuck in the middle" situation.
Even though Porter rejects this in the generic competitive advantage model, research has proven this to be the path to creating blue oceans.
Example: Nokia.
Identifying Value Innovation Niches
Daniel Newton Obaka, Director, United States
Information technology revolution provides an excellent platform for pursuing this value innovation.
It is becoming clear that the majority of humans wants things done right, well, and cheap to meet the needs of the majority. When one is driven by the crave to gain profit at the expense of providing affordable, and qualitative products for the majority, then 'value added philosophy' becomes tainted.
The ability to identify a niche in an area where there is no competition is a challenge to many value added innovators. Where do we go from here? What is innovation?
In my understanding, innovation is the ability to see opportunities and employ out-of-the-box thinking to generate new value and bring significant changes in society.
Toyota Strategy
Vivek Hattangadi, Management Consultant, India
@Mauricio Crippa: Could you please elaborate on this point - frankly I am ignorant on that Toyota strategy.
I am from the pharmaceutical industry and have limited knowledge outside this industry.
Differences between Porter's Five Forces and Blue Ocean Strategy
Jun Aspacio, Director, Philippines
Porter's is a diagnostic tool used to analyze the organization environment (industry) by considering 5 major components. On the other hand, BOS is a strategy (can also be used as a framework) in directing the future f the organization to venture into something that is hitherto not even been tested or uncharted. Data gathered using Porter's will be used to guide the organization into BOS.
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