Blue ocean strategy: keys to differentiate yourself in today’s market

The blue ocean strategy is an innovative business approach that has gained prominence in the business world. It focuses on creating new market spaces, known as “blue oceans”, where a company can operate with little competition and therefore enjoy higher profit margins.

The blue ocean strategy was conceptualized by W. Chan Kim and Renée Mauborgne. Instead of competing in saturated markets, where companies fight to gain existing market shares, the blue ocean strategy proposes the search for unexplored opportunities and the creation of new markets.

Key Features

1. Innovation: Creating a blue ocean often involves introducing innovative products or services that uniquely meet customer needs. Innovation can manifest itself in various forms, such as product features, business model, or customer experience.
2. Cost Reduction: By avoiding direct competition, companies that adopt the blue ocean strategy can experience a decrease in competitive pressure, which in turn can translate into higher profit margins.
3. Value Creation: The strategy seeks to create value for both the company and customers. By offering something new, companies can attract new customers and retain existing ones.

Steps to Implement the Blue Ocean Strategy

1. Recognition of the Current Market: Understanding the current market and evaluating the characteristics that define the competition is crucial. This provides the basis for identifying untapped opportunities.
2. Identification of Opportunities: Analyze customer needs and look for areas where demands are not completely satisfied. This can lead to the identification of opportunities for innovation.
3. Systematic Innovation: Develop and execute innovative strategies that allow the company to differentiate itself from the competition. This may involve changes to the product, business model or value chain.
4. Continuous Evaluation: Successful implementation of the blue ocean strategy requires constant evaluation. Companies must adapt as market conditions evolve and maintain their competitive advantage.

Examples

1. Cirque du Soleil: Transformed the traditional circus market by offering a show that fuses elements of theater, music and acrobatics, attracting a broader audience and creating a new entertainment space.
2. Nintendo Wii: Instead of competing directly with other video game consoles, Nintendo created a unique gaming experience and appealed to a broader market segment, including casual gamers and families.

Conclusion

The blue ocean strategy offers companies the opportunity to escape intense competition and forge their own path to success. By adopting an innovative and customer-centric approach, companies can sail into uncharted waters and reach new heights in the business world.