BLUE OCEAN STRATEGY

#bleedblue

BLUE OCEAN STRATEGY- “don’t beat the competition, make it irrelevant.”- W.Chan kim

Before getting what kinda strategy it lets figure out what exactly blue ocean is??

We are very well aware of Apple, Google, Netflix -examples of blue ocean.

BLUE OCEAN STRATEGY is referred to a product where there is no or less competition in the market.

(Sounds simple right! But it ain’t that much)

3 basic ways of pursuing blue ocean strategy

1.      Offering a breakthrough solution for an industry’s existing problem.

2.      Identifying and solving a brand-new opportunity.

3.      Redefining an existing industry problem and solving the redefined problem.

So, when you create a breakthrough solution for an existing industry problem, it strikes at the core of existing firms and markets, and disruption happens. When you identify and solve a brand-new problem or seize a brand-new opportunity, you unlock new market beyond existing industry boundaries where disruption is hardly at play. When you redefine an existing industry problem, both disruptive and non-disruptive creations are in full play.

Another trap is to equate market-creating strategies with differentiation. Differentiation under competitive strategy requires a company to provide premium value at a higher price in order to stand out

Next is, flip the “above” trap i.e. managers sometimes equate market- creating strategies with low-cost strategies by driving down cost.

Successful market-creating strategies don’t focus on finer segmentation and instead “desegmentation” of the market.

 P.S : you are most welcome to add-on more points