Blue Ocean
Candlefocus EditorBlue ocean strategies go beyond traditional cost- and growth-related strategies to focus on creating products and services that are different from existing offerings and often times serve a much wider market. Blue oceans focus on transforming existing markets by creating a new one or reinventing an old one rather than direct competition in an existing sector. This gives businesses the opportunity to expand and diversify their customer base, generate more revenue and increase profits.
Blue ocean strategies differ from the traditional "red ocean" strategies. Red oceans are crowded, often highly competitive markets where companies compete with each other using traditional tactics such as cost cutting and promotions. In a blue ocean, businesses can find uncontested market space where they can differentiate themselves without extreme competition.
The blue ocean strategy helps companies focus on customer needs and preferences, instead of price or features. This customer-centric approach helps businesses create value and develop new products that can be tailored to the customer's unique needs and wants. Companies can also use blue ocean strategies to tap into existing opportunities and develop a competitive advantage in the market.
In their book, Kim and Mauborgne outline 150 blue ocean strategies that have been successfully implemented by companies over the last 100 years. Examples of blue ocean strategies include creating a lifestyle product, new or improved customer experience, creating customer packaging or value propositions, or co-creation with customers.
By creating a blue ocean, firms can transform their markets and create an uncontested market space. This gives them the opportunity to maximize their profits, expand their customer base, and increase their customer loyalty. With blue ocean strategies, businesses can differentiate themselves from the competition and create long-term success and customer satisfaction.