Blue ocean strategy is simply a repackaged version of Bowmans hybrid Essay

Blue ocean strategy is simply a repackaged version of Bowmans hybrid strategy - Essay Example value creation in order to be differentiated in the industry. Blue Ocean’s strategy is an echo of bowman’s theory since they both base on cost and value addition in order to create new demands. Blue Ocean theory explains that for companies to create value innovation, the companies must employ lower costs and differentiation measures. Wiley 2015 adds Bowman’s theory involves product differentiation and cost leadership as some of its main strategies. In cost leadership, companies thrive to offer commodities at a lower cost but with a high value than the other low costs rivals. In product differentiation, volume forms a vital component in its differentiation. The organizations offer low prices with high volume hence value creation. Blue Ocean’s theory uses the same Bowman’s theory principles, to acquire the new markets. Blue ocean theory achieves value innovation through costs cutting and differentiation to facilitate new markets. There is no added principle which distinct it from Hybrid theory, hence making it a replicate of Bowman’s theory. The renowned Tata Motors developed the world’s cheapest car Tata nano in order to create a new demand and value. The car is unique as it offers the same benefits of passenger vehicle but at a very cheap cost. The car costs $2,500 which was set basically for customer’s affordance. The price was set without consideration of the company’s production costs and margin. The company created a new demand which was initially unavailable within the market at a cheap price, and affordable by a majority all customers. With the help of its partner and engineers, Tata Motors developed the car’s features anew with its target customers in mind. The car was developed with a smaller engine than the current vehicles in order to minimize horsepower wastage within India’s cities which are over congested with traffic jam. The company lacks competition due to its economies of scale. The company brought in renowned supplies,