08 December 2009

Blue Ocean Strategy Glossary - Divergence

Divergence

Divergence refers to the difference between a company's strategic profile and that of its competitors'. Specifically, it refers to the divergence between the key competitive factors and level of investment in these factors of a company's offering relative to its rivals' as visualized on the strategy canvas. In red oceans, companies' strategies tend to converge; they tend to focus on the same key competitive factors with marginal differences in price and offering level across these competing factors. A company practicing blue ocean strategy, in contrast, reconstructs market boundaries to create a divergent offering from the competition. See Strategy Canvas and Six Paths Framework.

Source: Blue Ocean Strategy Glossary - Divergence, Business Strategry Terms at www.blueoceanstrategy.com

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