How can you apply Blue Ocean Strategy to your business?

1 Identify your current value proposition

The first step is to understand how your current products or services deliver value to your customers and how they differ from your competitors. You can use a tool called the strategy canvas to map out the key factors that influence your customers' decisions and how you perform on each factor relative to your rivals. This will help you identify where you are competing head-to-head and where you have some differentiation.

2 Analyze the current market boundaries

The next step is to examine the current market boundaries and assumptions that define your industry and limit your strategic choices. You can use a tool called the four actions framework to challenge these boundaries and generate new ideas. The four actions are: eliminate, reduce, raise, and create. By asking yourself what factors you can eliminate or reduce that the industry takes for granted, you can simplify your value proposition and lower your costs. By asking yourself what factors you can raise or create that the industry has overlooked, you can enhance your value proposition and increase your benefits.

3 Explore the blue ocean potential

The third step is to explore the blue ocean potential by looking beyond your existing customers and markets. You can use a tool called the three tiers of noncustomers to identify and reach out to new segments of potential buyers who are either uninterested, unsatisfied, or unaware of your current offerings. By understanding their needs, preferences, and pain points, you can tailor your value proposition to appeal to them and create new demand.

4 Craft your blue ocean strategy

The fourth step is to craft your blue ocean strategy by articulating your new value proposition and how you will deliver it to your target customers. You can use a tool called the value innovation logic to align your value, profit, and people propositions. This means that you should focus on creating value for your customers that is both different and low-cost, ensuring that your revenue model and cost structure are profitable and sustainable, and engaging your employees and stakeholders in the process of innovation and execution.

5 Test and validate your blue ocean strategy

The fifth step is to test and validate your blue ocean strategy by conducting experiments and collecting feedback from your customers and stakeholders. You can use a tool called the blue ocean fair process to ensure that your strategy is fair, transparent, and inclusive. This means that you should involve your key stakeholders in the formulation and implementation of your strategy, explain the rationale and objectives of your strategy, and provide clear expectations and feedback mechanisms.

6 Execute and scale your blue ocean strategy

The final step is to execute and scale your blue ocean strategy by overcoming the organizational and market barriers that may hinder your success. You can use a tool called the tipping point leadership to mobilize your resources and influence your stakeholders. This means that you should identify and leverage the factors that have a disproportionate impact on your performance, enlist the support of the key influencers and opinion leaders, and overcome the cognitive, resource, motivational, and political hurdles that may resist change.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?