Blue Ocean Strategy

Blue Ocean Strategy is a business approach that suggests companies can succeed by creating new, uncontested market space—referred to as a "blue ocean"—rather than competing in saturated markets ("red oceans"). The strategy focuses on innovation and differentiation, offering unique products or services that open up new demand and make the competition irrelevant.

Example

Cirque du Soleil used a Blue Ocean Strategy by reinventing the circus experience. Instead of competing with traditional circuses, it combined elements of theater and acrobatics, creating a new market space that attracted a different audience.

Key points

• Involves creating new, uncontested market spaces rather than competing in existing ones.

• Focuses on innovation and differentiation to make competition irrelevant.

• Encourages value innovation by combining differentiation with low cost.

Quick Answers to Curious Questions

What is the main goal of a Blue Ocean Strategy?

The goal is to create new market space where competition is irrelevant by offering unique products or services that meet unmet needs.

How does Blue Ocean Strategy differ from traditional competitive strategies?

Instead of competing in crowded markets, it seeks to create entirely new markets, avoiding direct competition.

Can you give an example of a successful Blue Ocean Strategy?

Cirque du Soleil is a prime example, as it created a new market by blending theater and circus, attracting a different audience and reducing competition.