What is the Blue Ocean Strategy and How it is Applied Today?
The blue ocean strategy is a business strategy that creates uncontested market space and drives the competition out of the market. It is a strategy that focuses on creating value for customers and then communicating that value to them in a way that makes them want it.
The Blue Ocean Strategy has been applied in many industries, from healthcare to education and from manufacturing to service industries.
It can be applied in any industry where there are competitors vying for the same set of customers.
DOWNLOAD NOW – 7 Strategies That Will Grow Your Small Business [FREE GUIDE]
The Blue Ocean Strategy is a business book authored by W. Chan Kim and Renée Mauborgne in 2005. It is a metaphor that describes the process of creating “blue oceans” in industries where competition exists “red oceans”.
The strategy aims to create new demand by offering customers something they don’t already have and asking them what they want instead of what they need.
The Benefits and How to Implement it in Your Business
The Blue Ocean Strategy is a system that helps companies create new markets and capture untapped customer groups. It takes a high-level perspective, looking at the industry as a whole, and then identifies gaps in the market.
This innovation strategy tries to avoid direct competition with other companies. Instead of focusing on bettering what already exists, it creates something new that doesn’t have any competition.
The blue ocean strategy is a proven and effective way to help businesses grow.
The benefits of the blue ocean strategy can be seen in the following ways:
• It is a more sustainable competitive advantage
• It’s easier to find and keep talented employees
• People are more motivated when they work in an organization with a clear purpose there is less risk for failure.
How to Use the Blue Ocean Strategy to Create a Product or Service That No One Else Is Offering
The strategy is based on the idea that there are three different types of oceans: Red, Blue, and Grey. In these oceans, red represents where all the competition resides, and grey represents areas where there is no competition because it’s too difficult or unprofitable. Blue represents an ocean with little or no competition because it’s not being explored at all – this is where we want to find our own “blue ocean.”
1) Identify your value proposition – What are you offering customers that no one else can?
2) Identify who your target customers are – Who are the customers most likely to buy your product or service?
3) List out all of the competitors in your market space – And identify where the gaps are.
Conclusion: The Importance of Creating an Uncontested Market Space for Your Business
The traditional marketing strategy of a company is to compete in the red ocean. It is a market with many competitors, and the only way to survive is to be aggressive, cutthroat, and out-market your opponents.
However, the blue ocean strategy is a different approach that focuses on creating new markets with low competition.
Here are five steps to creating an uncontested market space for your business.
1) Understand your customer’s needs:
2) Create a unique value proposition:
3) Develop an innovative product or service:
4) Communicate your USP effectively:
5) Evaluate your progress