Blue Ocean Strategy

Posted in Marketing and Strategy Terms, Total Reads: 10411
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Definition: Blue Ocean Strategy

Blue Ocean Strategy (BOS) is a framework which inspires to innovate and develop new demand and new markets to sell your products instead of fighting with competition over the same market share and satisfying the same demand which is typically done in a red ocean strategy (ROS).

The key points of BOS are-

  • Make the competition irrelevant
  • Innovate and develop new demand
  • Render the competition irrelevant
  • Break the value cost tradeoff
  • Move the company such that it excels in low cost and differentiation both rather than excelling in only one of these.

There are basically 6 routes to explore to develop new markets and new demand over the existing ones-

  • Industry
  • Strategic group
  • Scope of product or service offering
  • Functional/emotional offering
  • Industry orientation
  • Timing

Thus BOS is all about minimizing risks due to competition threat and maximizing opportunities by exploring new boundaries. However, formulating and executing BOS have their own principles.

BOS


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