Blue Ocean Strategy

Blue Ocean Strategy is a business concept that focuses on creating new market spaces, rather than competing in existing markets. It is based on the idea of differentiation and seeks to create uncontested market space by producing goods or services that are not found in existing markets. The aim of blue ocean strategy is to make the competition irrelevant by creating an entirely new industry or category. This strategy requires companies to think differently about how they can differentiate their product from others and create customer demand for it. Blue ocean strategies typically require companies to rethink their value proposition, develop a unique value curve, and create a competitive advantage through innovation. By focusing on differentiation, companies can use blue ocean strategy to increase profitability and outpace their competitors without engaging in a price war or other forms of competition.

Companies that use a blue ocean strategy will start their operations without competitors, a massive competitive advantage. This strategy is optimal for companies without the same level of technical capability as the best competitors in their category. An example of a successful blue ocean strategy is the Nintendo Wii, which captured a new market for video games. Nintendo did not have the capacity to compete with Sony and Microsoft on a technical level at the time, so they found a new market instead.

Related Keywords: Innovation, Differentiation, Value Proposition, Value Curve, Competitive Advantage