Blue Ocean Strategy: What is It and How Can It Benefit You

June 9, 2023

Blue Ocean Strategy: What is It and How Can It Benefit You

What is Blue Ocean Strategy, and how can it impact my business?

  1. Blue Ocean Strategy focuses on creating a new market space.
  2. It is a strategy that gives you less competition.
  3. It serves as a framework for sustainable growth.
  4. It can help you develop customer-tailored products and services.
  5. It enables you to expand further your market reach.

The world of business is both unforgiving and competitive – a cold, hard fact that many don’t want to hear. With how dynamic it can be, some of the most seasoned entrepreneurs can find it challenging to stand out from the competition.

This is where the Blue Ocean Strategy comes in. It provides a strategic blueprint for businesses to know what path to take to get out from the head-to-head collision brought by the fierce competition. In this article, we’ll tackle what exactly this strategy is and how many businesses have found this strategy useful to transform their approach to attain their goals.

If this concept is new to you and wonders what benefit it will bring to your business, we got you.

Blue Ocean Strategy Focuses on Creating a New Market Space.

The blue ocean strategy involves identifying and tapping into new market opportunities rather than competing in existing markets. This strategy encourages businesses to differentiate themselves and create unique value for customers.

In theory, it may seem simple, but if you reading this now, you may find this daunting and impossible to achieve We can’t blame you. The fact that this strategic model leaves the competition out of the equation is a challenging quest. Of course, you’re running a business. How come you make competition immaterial when considering the factors to dominate your industry?

Many have shared their takes on how to shift to this new business strategy including W. Chan Kim and Renee Mauborne. For them, creating your blue ocean means that you can either create new industries or alter the boundaries of your existing industry. Why do this? They stressed that creating a blue ocean aims to SHIFT the focus of competition in the existing market to create a new demand that can attract a wider customer base. This means YOU create the demand other than fighting over it.

This strategy is the opposite of the red ocean strategy you’re most familiar with, and what is usually happening in our industry. You only have to outperform your rivals to get a much bigger share of the existing demand, which can be very competitive.

It is a Strategy That Gives You Less Competition.

It is a Strategy That Gives You Less Competition.

Unlike the red ocean strategy, you’re not required to be a gladiator in a suit to earn a good spot in the marketplace. Instead, this strategic framework encourages you to venture into the uncrowded part of the market segment. You’ll be challenged to operate in a market with little to no competition at all exists.

This makes this strategy appealing to both budding and highly-skilled entrepreneurs since this challenges them to innovate and widen their industry research to explore new opportunities.

Once you find a way out of a saturated market, your business will enjoy a unique advantage. You’ll have the freedom to evolve and craft new business products and services leading to an increase in profitability.

It Serves as a Framework for Sustainable Growth.

When there’s less competition, there are more growth opportunities. Creating your new blue ocean enables you and your company to break free from the intense competition that characterizes established markets, opening up opportunities for long-term success. This is done by focusing on an important key element: innovation.

When you explore new markets, you c formulate new strategies to stay ahead of the changing market dynamic and unpredictable customer demands. Creating your blue ocean will soon emphasize value innovation. This develops your ability to differentiate and apply low-cost strategies. By doing so, you can attract new customers and create a demand that was not there before. You’ll see that over time this will lead to increased profitability and sustained growth.

This approach fosters a culture of continuous innovation. By actively seeking opportunities for improvement and adapting to changing market conditions, businesses can maintain their competitive advantage and stay relevant. This adaptability is crucial for long-term growth as it allows companies to respond to evolving customer preferences and technological advancements.

Along the way, you’ll find your self becoming more agile and flexible to disassemble the box that confines new innovative concepts for quite too long. When you develop these entrepreneurial soft skills, you’ll see how your business will grow and become a leading voice in your industry.

It Can Help You Develop Customer-Tailored Products and Services.

It Can Help You Develop Customer-Tailored Products and Services.

Since the blue ocean strategy is big on value innovation, businesses embrace the arduous task of creating unique offerings that will satisfy their customers’ needs.

When you enhance your value proposition, you give enough reasons for the customers to prioritize you over your rivals. As they experience differentiated products or services, your customers will feel connected to you as if you understand them on an emotional level. This is a true mark of good customer service.

With this said, they become more loyal and satisfied with your brand. And you know what happens when they trust you? You solidify your relationship with your customers.

It Enables You to Expand Further Your Market Reach.

Another significant benefit of the blue ocean strategy is the ability to engage and tap new customers. When you dive in with your market research, you see its untouched side. This opens the door for you to make them your prospective clients.

Exploring new markets also gives you persepective on how wide your competitor’s reach is. This gives you the advantage of understanding the reason why their target audiences prefer the competition. This way, you can make a move to expand your customer base.

Once you successfully capture their attention and deliver their desired preferences, your business will hopefully gain a unique and stronger market position.

Key Takeaway

Sometimes the best way to understand how things are is to provide concrete and true-to-life examples. One of the most successful businesses that captured a blue-ocean market intelligently is Netflix. They solved two major pain points their rival, Blockbuster, customers experienced by creating an online DVD rental service. To this day, they are the giants when it comes to providing solid media entertainment globally.

So, if you’re someone who wants to level up their business strategy, contact Benito Keh. Learn from one of the greatest minds in shaping the market today and see how your business flourishes.