Examples of companies who have successfully used similar practices to improve their profitability include the following. When writing the book that became the foundation for blue ocean strategy, Kim and Mauborgne studied a variety of companies who had used the tactic to start up new businesses or to grow existing ones. Companies successfully utilizing the blue ocean strategy At the time, there was little competition and Ford created a new market. An early example of its successful implementation is the Ford Model T motor car, which was introduced in the early 20th century as an alternative to the horse and buggy. Many companies of all sizes have utilized this strategy to adapt to competitive pressure in their markets. Though the term “blue ocean strategy” has only existed for about 15 years, the practice itself is not new. Rather, it involves exploring new markets and niches to serve by finding new uses for your current products or innovating beyond their current use. Doing so could alienate your most loyal customers. Adopting this strategy doesn’t mean that you need to abandon your core products and services. Rather than trying to beat rising levels of competition, blue ocean strategy involves finding a new niche and differentiating yourself to the point that competition is irrelevant. When your market is saturated and you’re trying to find new ways to compete, Kim and Mauborgne consider this a “Red Ocean Strategy.” Their tactics involve shifting away from the crowd and offering new value to different customers. The term refers to the fact that when there are more businesses competing for the same competitors, competition becomes more cutthroat and “bloody” - i.e., red. blue ocean strategy helps you brainstorm your own strategy for your business.īlue ocean strategy involves innovating and expanding your products and services to capture new markets in which there are substantially fewer competitors.
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