Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant

In today's cutthroat business environment, competition is fierce and the red ocean of bloody competition is getting more crowded by the day. Companies are constantly vying for market share, and the only way to survive is to outdo your competitors. But what if there was a way to avoid the competition altogether? What if you could create your own uncontested market space and make the competition irrelevant?

That's exactly what Blue Ocean Strategy is all about. This groundbreaking book by W. Chan Kim and Renée Mauborgne will show you how to break free from the red ocean of competition and create a blue ocean of uncontested market space.

The Red Ocean vs. the Blue Ocean

The red ocean is the existing market space where companies compete head-on for market share. The competition is fierce, and the only way to win is to outdo your competitors. This can lead to a race to the bottom, where companies are constantly cutting prices and sacrificing quality in order to stay ahead.

The blue ocean, on the other hand, is the uncontested market space where there is no competition. This is where you can create a new market or redefine an existing market in a way that makes the competition irrelevant.

The Four Principles of Blue Ocean Strategy

There are four key principles that underpin Blue Ocean Strategy:

1. Value innovation: This is the simultaneous pursuit of differentiation and low cost. It's about creating a product or service that is both unique and affordable.
2. Focus: This is about choosing a target market and then tailoring your product or service to meet the needs of that market.
3. Reach beyond existing demand: This is about creating new demand for your product or service by appealing to non-customers.
4. Eliminate the factors that don't add value: This is about getting rid of anything that doesn't contribute to the customer experience.

How to Create a Blue Ocean Strategy

Creating a blue ocean strategy is not easy, but it is possible. Here are the steps involved:

1. Rethink your industry: Take a fresh look at your industry and identify the factors that are driving competition.
2. Identify your target market: Who are you trying to reach with your product or service?
3. Create a value curve: This is a graphical representation of the value that your product or service offers to customers.
4. Eliminate the factors that don't add value: Get rid of anything that doesn't contribute to the customer experience.
5. Create a new value curve: This is a graphical representation of the value that your product or service will offer to customers after you have eliminated the factors that don't add value.
6. Implement your blue ocean strategy: Put your plan into action and start creating your uncontested market space.

The Benefits of Blue Ocean Strategy

There are many benefits to creating a blue ocean strategy, including:

• Increased profitability: Blue ocean strategies can lead to higher profits because you are not competing head-on with other companies.
• Reduced competition: Blue ocean strategies can help you avoid the competition altogether, which can lead to a more peaceful and less stressful business environment.
• Increased market share: Blue ocean strategies can help you grow your market share by appealing to non-customers.
• Greater customer satisfaction: Blue ocean strategies can lead to greater customer satisfaction because you are offering them something that they can't get anywhere else.

Conclusion

Blue Ocean Strategy is a powerful tool that can help you create a successful business. By following the principles of Blue Ocean Strategy, you can break free from the red ocean of competition and create your own uncontested market space.