Blog 38: What is a Blue Ocean strategy and its relevance in a saturated market?

Competing in an increasingly crowded space? If yes, stop competing! and explore the Blue Ocean strategy.

According to HBR, it is the best way to drive profitable growth.

In red oceans:

• Companies try to grab market share from existing players.

• As competition intensifies, profit and growth prospects shrink and …

• … products become commoditized.

In blue oceans:

• Un-contested market spaces are created …

• … where the competition is irrelevant.

• New demand is generated …

• … and companies are able to offer greater value while streamlining costs.

Source: Book - HBR’s 10 Must Reads on strategy

Characteristics of blue ocean strategy:

• Blue ocean rarely result from technological innovation:

  • Often the underlying technology already exists.

  • Blue ocean creators just link the existing technology to what buyers value.

• Most blue oceans are created from within, not beyond, existing industries.

• Creating blue oceans, builds brand equity that lasts for a longer duration.

Whether or not, you operate in a crowded market place, you must explore blue oceans.

Blue ocean strategy is one way to transform a business model (refer blog 57 to learn more about transformative business models).

Jump to blog 100 to refer to the overall product management mind map.

Source: Book - HBR’s 10 Must Reads on strategy

All the best! 😊