What are the steps to create a blue ocean strategy?

The first step we need to consider when creating a blue ocean strategy.is moving beyond competition-based strategy and this is because of 2 reasons: 1) Technological advances in manufacturing and distribution mean more products are readily available than ever This means competition is global, niches are disappearing and monopolies are threatened. 2) Globalization has caused international trade barriers to fall and made global price information instantly available Having these 2 factors in mind, our market analysis should focus on finding solutions to these 2 issues when creating a blue ocean

Working on a blue ocean strategy for introducing low deuterium depleted water (DDW) in India, we focused on: > Pain Points: Addressing challenges with existing health products, availability, and safety concerns. > Untapped Markets: Catering to health-conscious consumers seeking innovative wellness products. > Trends & Tech: Monitoring health industry trends and water purification tech advancements to stay innovative. We tried looking at some of the top companies who nailed it by creating uncontested market space, thereby making the competition irrelevant. with their Blue Ocean Strategy like Tesla, AirBnB, Amazon Web Services.

Creating a Blue Ocean Strategy involves systematically finding new, untapped market spaces. This starts with understanding the concept and analyzing the current market. Key factors are identified, and a value curve is created to visualize the business's position. Pain points are addressed, and innovative ideas are generated and refined. Once a viable concept is established, a detailed implementation plan is developed, covering marketing, operations, and resources. Continuous monitoring and adaptation are crucial for success. It's a dynamic process prioritizing customer value and challenging industry norms.

Use the strategy canvas to understand how your product and service offerings rank among your competitors visually. You may gather the information using a survey.

I approach solutions by first understanding what I know and can contribute and then researching what I don't know and using success stories to understand and support my input. Case in point: Yellow Tail Wines, disrupted the wine industry by simplifying the wine selection process, making wine approachable and affordable for a broader audience. They created a blue ocean by focusing on easy-to-understand labels and casual drinking. Based on the visibility of their product, I think this is another success story. You?

This step should not be identifying non customer, the most important thing that will create a blue ocean is value innovation, red ocean companies operate on the model of high-value high cost products vice versa, while blue ocean companies should focus on value innovation while lowering cost, that balance is very important, because if we only focus on value without innovation, this approach will anchor the company in the red ocean and if we focused on innovation without value, the product will be impractical.

Understanding who is not your customers, will help you to create additional value for your product and service. This new value will bring in new market for your product and service.

This step should be dedicated to assessing the strategy combined with the market study, this can be achieved using a few tools like the strategy canvas that includes factors of competition and value curve, another tool that will help us with the value curve is the four action framework, this tool optimizes the strategy successful blue ocean strategy has 3 hallmarks: 1. Focus: An emphasis on only key factors of competition. 2. Divergence: A break from an industry’s prevailing strategies. 3. Compelling tagline: e.g. Southwest’s, “The speed of a plane at the price of a car—whenever you need it.”

Look beyond your existing market for opportunity that can be integrated to your existing products and services. This will open new market for your company.

Strategic Pricing Price corridor of the mass: A process for finding an optimal price point involving the following two steps: 1. Identify any existing alternatives to your product, either with differing forms and the same function, or differing form and function, but the same objective. 2. Examine the price and user base of each alternative

Offering new services to your same group of customers will increase the AOV per customer. The new services compliment your existing offering.

Cost Three levers of cost reduction: Streamlining: Simplifying and optimizing operations. Partnering: Forming strategic alliances to share cost burden with other firms. Pricing innovation: Changing the way a product or service is monetized, e.g., Blockbuster’s choice to rent videotapes to consumers rather than to sell them.