Use the Blue Ocean Strategy to Create Uncontested Market Space
Two thirds of ocean life is still undiscovered until this present day. By using the analogy of the wide undiscovered ocean, the Blue Ocean Strategy refers to the idea that most parts of the market are undisclosed and uncontested. A new market can be created by merging old and new ideas. Use the Blue Ocean Strategy to discover the next blue ocean that will be your key to success.
What is BOS? Origin & Definition
W. Chan Kim and Renée Mauborgne, Professors of Business and Management at INSEAD, developed the Blue Ocean Strategy in 2005. To illustrate the basic principle, the metaphor of the blue and red ocean is used to demonstrate two antithetic poles. On the one hand, the red ocean symbolizes the market that is already full of competitors – saturated and worn out. The blue ocean, on the other hand, is the market that is not yet discovered.
Because there is not competition yet, the market will be undisclosed and all yours. Anyone can contest the blue ocean – the only thing needed will be a strategy to get started and to be successful. To develop such a well-grounded concept, BOS will help you to do so.
The red ocean on the other hand symbolizes the saturated markets, where market entry is almost senseless due to the heavy competition. Important: You can create a blue ocean yourself! The strategy is not about finding a market; it’s about creating a market. You can leave the competition behind and simultaneously serve the needs of a newly created customer base.
“Great spirits have always encountered violent opposition from mediocre minds.”
Successful companies do not follow ideas somebody already had. They discovered a sector of a new market that was promising and innovative. And exactly this concept is picked up by the Blue Ocean Strategy: forget about your competitors – you will create a new industry that does not have any competitors after all.
If you stand out between many others and use innovative potential, your distinctiveness will be remembered. One excellent example would be The Body Shop. The Body Shop, as a blue ocean entrepreneur, is known for its sustainable and eco-friendly business concept and a popular global player.
Develop new markets with these methods
1. Analysis of the industry competing factors
2 Redefinition of the competing factors with the help of the ERRC- Grid under the four criteria: Eliminate, Raise, Reduce, Create
3 With the six paths framework you will find a new approach for the systematic expansion of the market. You consider 1 alternative industries, 2.strategic groups, 3 the buyer groups, 4 complementary products and services, 5 functional and emotional buying motives clear track, 6 sustainable trends
4 Draft of a value curve that describes the value innovation of the previously worked out
5 Here the 4 phases of visualization: 1 start, 2 discoveries, 3rd Strategic Options, 4 communication
6 Display with the PMS-square (Pioneers, Migrator, Settlers) the innovation grade and market potentials
7 Overcome organizational hurdles (clear communication, determine resources and targeted exploit, promote motivation and performance, change culture in company policy establish)
Present your strategy in PowerPoint
In only a few minutes you can create, develop and present a solid Blue Ocean Strategy in PowerPoint. Created by our own designers, the set with 48 PowerPoint templates includes all the methods you need to visualize a new business model in a contemporary design. The integrated strategic questions will help you to develop a complete strategy.
featured image: © Dmytro Sukharevskyy – Fotolia.com