What Is Blue Ocean Strategy?2018-10-12T06:59:25+00:00

What Is Blue Ocean Strategy?

Most companies exist in red oceans, these companies are simply copies of similar ideas executed in similar ways and are destroyed by fierce competition. Instead, what is ultimately more successful and exciting is daring to be different, creating new products that bring unique value to customers. These are the blue ocean ideas, the untapped market spaces. A Blue Ocean offers a new opportunity for profitable and rapid growth by creating new demand to an entirely new uncontested market space, which can lead to faster growth and higher profits.

Blue Ocean Strategy is the key behind some of the most successful companies including Apple, Microsoft, Cirque du Soleil etc.

The competition between companies create their own and different ways to compete in order for them to succeed. These companies are stuck in a vicious cycle that can not survive in the market nor can it create substantial profits. This is called the Red Ocean. In a competitive Red Ocean market everyone is just communicating a different version of the same thing to the same audience. When companies begin to search in uncharted waters this becomes uncontested market space, leaving the competition behind, this is called Blue Ocean Strategy. There are 2 pillars to consider with Blue Ocean Strategy, they’re value innovation and the four actions framework including sales and profit growth.

Blue Ocean Strategies contend that tomorrow’s leading companies will succeed not by battling competitors but by making their competition irrelevant and by creating a ‘blue ocean’ of new and uncontested market space.

8 Key Points of Blue Ocean Strategy

From assessing the current state of play in an industry, to exploring the six paths to new market space, to understanding how to convert noncustomers into customers. Blue ocean strategy provides a clear four-step process to create your to-be blue ocean strategy.
The blue ocean idea index allows you to test the commercial viability of your ideas and shows you how to refine your ideas to maximise your upside while minimising downside risk.
The process and tools are inclusive, easy to understand and communicate, and visual – all of which makes the process non-intimidating and an effective path to building execution into strategy and the collective wisdom of a company.
As an integrated approach to strategy, blue ocean strategy shows how to align the three strategy propositions – value, profit, and people – to ensure your organization is aligned around your new strategy and that it creates a win for buyers, the company, and for employees and stakeholders.
Blue ocean strategy, developed by W. Chan Kim and Renée Mauborgne, is based on a decade-long study of more than 150 strategic moves spanning more than 30 industries over 100 years.
Blue ocean strategy is based on the simultaneous pursuit of differentiation and low cost. It is an ‘and-and,’ not an ‘either-or’ strategy.
Blue ocean strategy doesn’t aim to out-perform the competition. It aims to make the competition irrelevant by reconstructing industry boundaries.
Blue ocean strategy offers systematic tools and frameworks to break away from the competition and create a blue ocean of uncontested market space.

Chan Kim & Renée Mauborgne coined the terms red and blue oceans to denote the market universe. Red oceans are all the industries in existence today – the known market space, where industry boundaries are defined and companies try to outperform their rivals to grab a greater share of the existing market. Cutthroat competition turns the ocean bloody red. Hence, the term ‘red’ oceans.

Blue oceans denote all the industries not in existence today – the unknown market space, unexplored and untainted by competition. Like the ‘blue’ ocean, it is vast, deep and powerful –in terms of opportunity and profitable growth.

The chart above summarizes the distinct characteristics of competing in red oceans (Red Ocean Strategy) versus creating a blue ocean (Blue Ocean Strategy).

Generate New Ideas

Has your business hit a wall at squeezing efficiency out of your business? Blue Ocean Strategy is the systematic way of unlocking uncontested market spaces, helping you to build an innovative culture and thinking about your business in a really different way so that you can take your business to the next level. Whether you’re an army of 10, 000 employees or a business with only 2 people, you’ve still got to be able to grow your business by innovating the market place.

 Creative Intelligence

How do you really dominate in the market place? Most people are taught that you get into business and that you fight for competitive advantage, that you try to battle for some portion of the market share. The truth about head to head battles is that the approach is totally unsustainable. What you really want to do is factor in much larger audiences and to deliver your product/service in ways that have never been done before. Advantex360 takes your business to where demand is created rather than fought for!

Growth Strategy

Looking for new growth opportunities? If you do what everybody else does and you do it better than everybody else, you will gain a tiny competitive advantage however, if you do something no one else is doing in your space you will achieve a geometric advantage. By steering your business vessel with blue ocean strategies you can open up a space where you can dominate your market and really propel your business to achieve outstanding results.

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A bold new pathway to winning the future

Learn how you can move your business up from a number 2 or 3 position and become the industry leader rather than competitor. Blue Ocean Strategy is the answer. Make this an integral part of your business today!
Find out about Blue Ocean Strategy Executive Education