Blue Ocean Strategy involves creating new demand and making competition irrelevant from "summary" of Blue Ocean Strategy, Expanded Edition by W. Chan Kim,Renée A. Mauborgne
Blue Ocean Strategy is about creating uncontested market space by making the competition irrelevant. This strategy involves shifting focus from competing in existing market spaces to creating new demand and value innovation. By doing so, companies can break out of the red ocean of intense competition and instead explore new opportunities in untapped market spaces, which we refer to as blue oceans. To implement the Blue Ocean Strategy, companies need to identify what we call value innovation. This means creating a leap in value for both buyers and the company itself. By offering a unique value proposition that aligns with what buyers truly value, companies can attract new customers who are not currently being served in the market. One of the key aspects of the Blue Ocean Strategy is the focus on differentiation. Instead of trying to outperform competitors in the existing market space, companies should aim to stand out by offering something different and valuable to customers. This differentiation can come in the form of new features, services, or a different pricing strategy that sets the company apart from the competition. Creating new demand is another critical element of the Blue Ocean Strategy. Instead of fighting for a share of existing demand, companies should look to create and capture new demand by offering innovative products or services that open up new market segments. By doing so, companies can avoid head-to-head competition and instead focus on expanding the market. By implementing the Blue Ocean Strategy, companies can unlock new growth opportunities and drive sustainable success. By creating new demand and making competition irrelevant, companies can break away from the constraints of traditional market boundaries and chart their own path to success in uncontested market spaces.
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