Blue Ocean Strategy Examples Phillips Case Study

Blue ocean’s strategy has proven profitable for various companies in which one of the prominent examples is Phillips’s strategic move to the tea kettle market (Blue Ocean Systems, 2017). British tea kettle industry was moving towards losses until Phillips renovated the idea and transformed the red ocean of this industry into the blue. Although Philips is known for its electronics industry, with the launch of the tea kettle idea, the British tea-making method was initiated with a fresh breeze of this new idea. Provision of the total solution was Phillips’ main objective that was well-served to the customers. The product created was a reconstruction of the market boundaries and forming a new market space for which the blue ocean strategy worked wonders for the said company.

Blue ocean strategy could be considered a strategy for value innovation and disruptive innovation theory (Yunus & Sijabat, 2021). The recognition of new potential in the market opens new horizons for the company that wants to launch a new idea in a product or service. The company starts to rely more on new market potentials, new demand, and performance enhancement. It has been investigated that the blue ocean strategy could be achieved through radical and sometimes disruptive innovation embedded in pure differentiation strategies. The company’s economic, functional, operations, and psychological value reaches a height that creates a wider scope of increased customer loyalty.