What is blue ocean strategy?

[mouakter14]

In a saturated market like the one we currently face, young companies often face significant challenges. Understanding the definition of blue ocean strategy (creating a market space free of competition among companies by bypassing competitors) offers a solution to this dilemma.

Would you like to learn about the full potential of this corporate strategy? In this article, we'll explore examples of blue ocean strategy, its benefits, and companies that have successfully implemented it.

What is blue ocean strategy?


Blue ocean strategy, also known as Value Innovation, is a method by which companies enter new market niches without direct competition by developing an innovative concept. The strategy was developed by W. Chan Kim and Renée Mauborgne, who use the metaphor of "blue oceans" to differentiate them from "red oceans," characterized by intense competition between companies in the market.


Objectives and advantages of the blue ocean strategy
In their book Blue Ocean Strategy : How to Create Uncontested Market Space and Make the Competition Irrelevant , business professors Chan Kim and Mauborgne presented their concept of the successful company.

Taught at the European Institute of Business Administration, also known as INSEAD Business School, this strategy is considered part of strategic management and advocates that companies should not compete linkedin database with each other, but rather forge their own path.

To make competition irrelevant, companies must create unique and innovative products. This current strategy allows them to avoid the pressures of price wars. Although imitators are inevitable, Mauborgne and W. Chan Kim demonstrated in their study that companies could maintain their unique selling proposition for 10 to 15 years using the blue ocean strategy.

Among the main advantages of the blue ocean strategy we can mention:

There is practically no competition

Creating new demand, thereby attracting a new group of customers

Cost structures are not subject to competitive prices, which allows for their optimization.

Meaningful innovation leads to high sales volumes and economic growth without competitive struggles.