Blue Ocean Strategy Factorisation

Blue Ocean Strategy Factorisation

(a continuation from Blue Ocean Strategy: Creating Value, Appreciation and Application in Asia region", Jeong Chun phuoc, 1st Feb 2011)

BOS is at the other dimension. Blue Ocean Strategy is all about 'value creation' and 'direction alignment' in contemporary perception of competition which have floundered miserably in the aftermath of 2009 Global Financial turmoil snowballed by the US's own Financial Crisis 2009 prompting the establishment of the US Commission of Inquiry and the production of the damming 2011 US Financial Crisis Report(In "Financial crisis hits trust in political parties - report", Dave Graham and Alison Williams, it was quoted that The 2010 Global Corruption Barometer by Berlin-based watchdog Transparency International (TI) showed that 79 percent of respondents in a global study believed parties were "corrupt or extremely corrupt", up from 69 percent in 2009..." , at

http://search.yahoo.com/r/_ylt=A0oGdUpK_GNNRjMAxr5XNyoA;_ylu=X3oDMTEydnZjaDBjBHNlYwNzcgRwb3MDMwRjb2xvA3NrMQR2dGlkA0RGUjVfODg-/SIG=14qmlq0im/EXP=1298427082/**http%3a//thestar.com.my/news/story.asp%3ffile=/2010/12/9/worldupdates/2010-12-09T122636Z_01_NOOTR_RTRMDNC_0_-534473-1%26sec=Worldupdates",

These are just two examples which sent the advocates at Cambridge, Yale and Harvard scrambling for answers. BOS strives to change all these by providing new directions towards a higher level of governance, accountability and perhaps transparency in market competition in terms of 15 million unemployed Americans quoted by YaleGlobal Online as at Feb 2011 and a yawning US budget deficit which has widen to a whopping US1.48 trillion according to close estimation. Under these circumstances, can US's AAA credit rating be sustained by false or anti-BOS rating led by Moody, Standard and Poor,etc. Maybe a dynamic tax initiative may provide some relief -an issue raised by Jeffrey Sachs in The Guardian in reference to the strategic use of America's taxation tool.

An Economic Recursive Curve ?

Blue Ocean Strategy's primary components are at odds with ROS described above. In terms of value creation, it suggests the creation of uncontested market spectrum. But preserving America's Exorbitant Privilege(power to print the principle international reserve currency) is not one of them as raised in "Rift and Mastery" by Jean Pisani-Ferry(Director of Bruegel-international economics thinktank, professor of economics at Universite Paris-Dauphine and a member of the French PM's Council of Economics Analysis).

Any perceived existence of competition is irrelevant because there is no competition when new demand can be created and captured. Whereas value cost trade-off is a crucial factor under ROS, BOS rendered this item as non-essential.

A Matter of Choice

Within the corporate strategic superstructure itself, Blue Ocean Strategy eliminates the choice of differentiation(CoD) factor in direct pursuit of differentiation jointly with the obvious advantage of low cost. This can be related to a recent commentary by Gordon Brown(PM-2007-2010) in his article "A Global Growth Bargain"(Project Sytndicate,2011) where he reflected on the challenges faced by the Western hemisphere and the possible opportunities.

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Jeong Chun Phuoc

Expert Consultant and a pioneer advocate in Competitive Legal Intelligence(CLI)

and a Reader in Competitive Syariah Intelligence(CSI)

He can be reached at Jeongphu@yahoo.com

**The above professional analysis is the writer's personal view and in no way represent the view/position of the research institutes/thinktanks/organisations to which he is currently attached to.