Exploring the Blue Ocean Strategy: Creating Uncontested Market Space

Posted on May 24, 2024 at 08:05 PM

Do you feel chained by competition all the time? are you looking for a piece of the market where you can sail through uncharted territory and there is no competitor around? Blue Ocean Strategy might just be the answer to your prayers.

In this article, we will explore the fundamentals of Blue Ocean Strategy and equip you with practical tips for developing your own blue ocean strategy. 

By the end of this article, you will have enough information to not only comprehend but also apply this groundbreaking approach and possibly change the business world.

What is the Blue Ocean Strategy?

Blue Ocean Strategy is a marketing concept based on the book ‘Blue Ocean Strategy’ by W. Chan Kim and Renée Mauborgne. 

This strategy claims that firms can win not by fighting with competitors, but by searching for blue spaces that are not occupied by any competitor. These blue spaces are ideal for development and are defined by their high levels of profitability and growth and no competition.

Historical Context 

The idea was derived from the notion of blue oceans, the unfamiliar and deep waters that have not been discovered and enclosed by rivals, as opposed to red oceans that represent the scarcer waters with companies fighting each other to exhaust the available resources. 

The objective of the Blue Ocean Strategy is to move from this red ocean of intense and fierce competition to blue oceans to create new and uncontested markets.

Principles of Blue Ocean Strategy

 Value innovation

The foundation of the Blue Ocean Strategy lies in a concept known as value innovation. This key principle is about eliminating the competition by providing value for the buyer and your organisation thus entering a new, un-crowded market space.

The Four Actions Framework

If you're marketing through social media, you got to get to know the social media metrics that measure your success. Similarly, the four actions framework is a guide to plan your blue ocean strategy in an informed way, this framework allows you to identify and redefine the competition you share with other companies, here's how:

• Eliminate: Decide which elements are taken for granted by companies in the industry that you can use to your advantage.

• Reduce: Determine which factors should be worked out to levels below that of the industry benchmark, for instance: what can you make cheaper for the customer? What can you make smaller? where can you cut costs while still maintaining the same value?

• Raise: See which factors should be positioned higher than the industry norm, for example: what's not working for customers? where do they need better quality? And which parts would they pay to have in better quality?

• Create: Identify where to focus to create the factors that have never been provided by the industry. What's everybody missing? You can easily have clues to this by doing surveys and collecting customer opinions through various content marketing trends.

 The Strategy Canvas

The Strategy Canvas is a model that helps to show the current competition map in the industry and what the blue ocean will look like, it's basically shaping how things are and how things will be.

Reconstruct Market Boundaries

This principle focuses not on competing within the confines of the existing industry or trying to steal customers from rivals. But rather, it opens up new spaces where the business can grow.

How to Use Blue Ocean Strategy in Your Business?

The strategy to implement the Blue Ocean Strategy needs a shift in the organisation’s mentality as well as a systematic method. Here are steps to guide businesses thinking about adopting this strategy

Begin with a Blue Ocean Shift

The first step to shifting from red competitive waters to blue waters is analysing where the current trends lie, what kind of targets companies are implementing and where customers' interests really lie. So start by thinking outside the box and implementing interactive marketing strategies, what do your customers really want? What's currently not working out for them? how can you change that?

Engage Key Stakeholders

 Undoubtedly, the idea of the Blue Ocean Strategy would need to be communicated throughout all the levels of the organisation and the personnel would need to be made aware of the concepts the organisation is going to apply.

Utilise the Tools

Use frameworks like the Strategy Canvas and the Four Actions Framework as a visual model to map out and implement strategies.

Learn as you go

The journey never ends, and neither should your learning progress, always attend marketing courses in Dubai to get to know the market better, how things are changing, and how you can explore new blue waters.

A few last words

The journey towards discovering and navigating your own blue ocean is challenging but rewarding. It's about looking beyond the conventional boundaries of competition, tapping into new demand, and executing innovative strategies that leave competition irrelevant.

With the right mindset and strategic implementation, the Blue Ocean Strategy can lead your business to new heights of profitability and growth. The ocean awaits - are you ready