This blog article is a overview of some of the key points of the book by W. Chan Kim and Renée Mauborgne. In this article you will learn how to make your competition irrelevant and have sales and profit growth in excess of anything you thought was even possible. Click the link above or the picture below to read more. To read a more lengthy, in-depth article on the blue ocean strategy go to https://hbr.org/2004/10/blue-ocean-strategy.
Interested in buying the book? Go to https://hbr.org/product/blue-ocean-strategy
Executive Summary Of This Article
- blue ocean strategy is the key behind some of the most successful companies including apple, Nintendo, Cirque du Soleil (the largest theatrical producer in the world), The Home Depot, and many more
- blue oceans lead to easy growth because there is no competition
- using a blue ocean strategy has an incredibly high return on investment
- blue ocean strategy is one of the top marketing books every small business owner should read
Blue Ocean Strategy Examples PDF
What Is The Blue Ocean Strategy
Blue oceans strategy is the approach that suggests a company is better off searching for ways to play in uncontested market places instead of engaging with competition in existing marketing spaces. It is the idea of trying to find market spaces that are free of competitors by creating and caputuring new demand, making the competition irrelevant. An exmaple of a blue ocean strategy is Netflix. Netflix created uncontested marketing space by selling TV shows over the internet which no one else was currently doing. By doing this they made the competition irrelevant, creating and capture new demand for a service not currently available on the market. By doing this they were able to break the value-cost trade off by providing better value than cable TV (because you could watch any show you wanted at any time, without commercials) at a lower cost than cable TV. By entering a blue ocean they were able to pursue low cost and differentiation leadership compared to the alternatives to their product.
Why You Want To Operate In Blue Ocean Markets
Blue oceans are areas of the market where your competition is currently not. They lead to easy uncontested growth (from demand that is created not fought over), rapid growth in sales and profits due to a lack of competition, wider and deeper market opportunities because the space is not yet explored.
Why You Don't Want To Operate In Red Ocean Markets
In a red ocean environment the market becomes more fierce and crowded as competitors try to steal share from each other. As companies compete with each other prices are reduced, profits fall and growth is limited to the size of the current market. Products become commodities or very small niche segment players and the cutthroat competition turns the ocean red with blood. I like to think of it as a naval battle field versus oceans that are uncontested with no enemies. Those types of oceans are blood free and lead to easy, safe sailing.
Additional Reading From Harvard Business Review
- buy the book from Harvard Business Review - go to https://hbr.org/product/blue-ocean-strategy
- excellent additional reading on Blue Ocean Strategy is available at https://hbr.org/2014/05/blue-ocean-leadership and https://hbr.org/2009/09/how-strategy-shapes-structure
- you can also find more information straight from the blue ocean strategy website at https://www.blueoceanstrategy.com/
The Four Principles To Of Blue Ocean Strategy Formulation
Read the next article in this series to find out what the four principles of blue ocean strategy formulation are by clicking on this link.
Blue Ocean Strategy ROI
Read The Next Articles In This Series
1. Blue Ocean Strategy Summary - You Are Reading This Article
2. Blue Ocean Strategy Formulation - Click Here To Read This Article
3. Blue Ocean Strategy - The Strategy Canvas - Click Here To Read This Article
4. Blue Ocean Strategy Execution - Click Here To Read This Article
5. Blue Ocean Strategy Examples & ROI - Click Here To Read This Article
Sources for this series:
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