Blue Ocean Strategy vs. Michael Porter’s Five Forces Strategy
Blue ocean strategy differs from the Porter’s five forces strategy in a sense that blue ocean focuses on the bigger picture of the market by bringing substitutes whereas Porter’s strategy focuses on completion in the market. Competitive rivalry, threat of substitutes, and threat of new entrants are such forces of Porter’s five forces model, which represent the focus of a company towards competition with other companies. According to the blue ocean strategy, redefining the terms of competition by reconstructing the market boundaries is a much better strategy than falling into the competition. The main purpose of implementing blue ocean strategy is to make the competition irrelevant instead of beating the competition. Another difference between the two strategies is that Porter’s five forces strategy focuses more on the present customers of a company, whereas blue ocean strategies make the companies focus more on potential customers. Corporate Strategy and Corporate Social Responsibility Corporate strategy and corporate social responsibility play a vital role not only in improving organizational performance but also in ensuring long-term success of a company. Corporate strategy focuses on stakeholders’ expectations and includes such functions, which help a company achieve and maintain improved performance and productivity.