Searching for Blue Oceans Using a Value Network Approach

Abstract

This article proposes a value network approach to create blue oceans. To manage the cutthroat competition in firms’ existing markets, authors Kim and Mauborgne (2005) introduced the concept of capturing uncontested market space via a “blue ocean strategy” and suggested various models and techniques, such as the strategy canvas and value innovation, to pursue blue oceans. However, the applicability of their work has mainly remained restricted to B2C markets. We propose that by occupying structural voids in a focal firm’s value network, a direct or auxiliary enabler can create radical, architectural, or incremental blue oceans. We demonstrate that this approach can be applied to both B2B and B2C markets.