Blue ocean strategy is the name of a very famous book, written by W Chan […]
Blue ocean strategy is the name of a very famous book, written by W Chan Kim, Renee Mauborgne. The book name is Blue Ocean Strategy – How to Create Uncontested Market Space and Make the Competition Irrelevant.
First of all, Let’s read its definition based on its definition:
Blue ocean strategy is the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. It is about creating and capturing uncontested market space, thereby making the competition irrelevant. It is based on the view that market boundaries and industry structure are not a given and can be reconstructed by the actions and beliefs of industry players. In the following sentences, we mention the keywords, that you should use in your business.
The keywords of the blue ocean strategy:
- Simultaneous pursuit
- Low cost
- Open up
- Newmarket space
- New demand
These keywords make our goal clear. Simultaneously, in any market by spending a minimum of cost, open up a new market and create a new request.
Essentially, companies are pioneer or follower. it is obvious the first principle of “blue ocean strategy” is being a pioneer. Maybe you have to create a specific type of need. For instance, the iPod is always a great example of this strategy. Apple did not compete with Sony for a share of the market, the crest new product with new demands.
In contrast, we hear red ocean strategy, as you can suggest its purpose, it means that you have to fight for taking over the share of your company from the market. For example, the smartphone market is based on red ocean strategy, although several years ago iPhone was the only smartphone in the market. Apple and Samsung have the major share of the market, however, LG, Microsoft and other rivals like Huawei are competing for growing their share.