As a business owner, you may find your products or services may not meet revenue goals.
The one thing that you can do is to tweak them in such a manner that you create a niche product in the market. Blue Ocean strategy is precisely what one needs to do to create their market and help a business grow.
What is Blue Ocean Strategy?
The Blue Ocean strategy is helping your business to penetrate new uncontested spaces in the market, separate from similar companies. The new space is known as the Blue Ocean. The Blue Ocean meaning contrasts with the “red oceans,” where one struggles against vicious competition.
The Blue Ocean strategy, high product uniqueness, and low pricing make competition irrelevant. Professor W. Chan Kim – Co-author of the Book “Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant” explains that a Blue Ocean is required, particularly when supply exceeds demand in demand in a market. Today more industries are applying this concept, and it is expected to be more prevalent in the future.
Blue Ocean Strategy – a Boon for Business
The Blue Ocean business strategy can be a boon for your business, provided the strategy is right.
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Avoid Saturated Markets –
as a small business player, it isn’t easy to compete with large corporations. Adopting a Blue Ocean strategy will make your product or service different from others. Yet, it will address customer needs at a lower cost and help avoid competition.
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Growth Potential –
taking the Blue Ocean route means balancing product or service quality and innovation with utility and cost and creating value for the consumers. Word of mouth advertising in these situations helps to increase demand.
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Meeting Target Customers –
In Blue Ocean theory, innovation and value go side by side and are equally important. The approach is to offer target customers with innovations at their price points. It allows you to break the audience barrier to buying the product or service your business is selling.
Successful Examples of Blue Ocean Strategy
Netflix successfully used Blue Ocean twice. The co-founders, Marc Randolph and Reed Hastings, started the first of its kind DVD rental mailing service in 1997. It graduated to streaming Television. Both strategies worked, making Netflix the same level as Amazon or Walmart.
Nintendo avoided competing with giant Sony’s products such as PlayStation and Xbox on graphics. Instead, it focused on motion control wireless gameplay that was not available with competitors. It allowed them to introduce physical and interactive games like Wii Sports Series, which led to its console and games’ popularity growing rapidly.
Take Away
Businesses at a particular time compete viciously in the market and often fail. Instead, a company can look for verticals where the marketplace is free of competitors and has growth potential. Many household businesses have become brands today through Blue Ocean marketing.
