How can you use the Blue Ocean strategy to find new customers?

2 How does the Blue Ocean strategy differ from the Red Ocean strategy?

The Red Ocean strategy is the conventional approach to business, where you try to beat your competitors by offering a better product or service, a lower price, or a stronger brand. However, this strategy often leads to a bloody battle for market share, where you have to invest more and more resources to gain a slight edge over your rivals, while the customers become more demanding and less loyal. The Blue Ocean strategy, on the other hand, challenges you to rethink your assumptions and boundaries, and to create a new value proposition that appeals to a different or untapped segment of customers. By doing so, you can avoid the competition and capture new demand, while also reducing your costs and increasing your profits.

3 How can you apply the Blue Ocean strategy to your business?

The Blue Ocean strategy is not a one-size-fits-all formula, but rather a set of principles and tools that can help you discover and create your own Blue Oceans. To apply the Blue Ocean strategy to your business, you should first analyze your current industry and identify the factors that define the competition and the value proposition for your customers. Utilizing a tool called the Strategy Canvas, which is a graphical representation of how you and your competitors perform on these factors, you can then eliminate or reduce factors that are not essential or that are over-served by the industry in order to lower costs and avoid complexity. Additionally, you should raise or create factors that are under-served or missing in the industry to increase value and differentiate yourself from competitors. Finally, reconstructing your market boundaries and targeting new or non-customers can help you expand your market and capture new demand.

4 What are some examples of the Blue Ocean strategy in action?

The Blue Ocean strategy has been applied successfully by many companies across different industries and regions. For instance, Cirque du Soleil reinvented the circus industry by eliminating traditional elements and creating a new form of artistic and theatrical performance that appealed to a wider and more sophisticated audience. Southwest Airlines disrupted the aviation industry by eliminating conventional features and creating a low-cost, point-to-point, and fun travel that appealed to customers who wanted to save time and money. Nespresso transformed the coffee industry by eliminating traditional channels and creating a system of premium capsules and machines that appealed to customers who wanted to enjoy a high-quality and convenient coffee experience at home.

6 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?