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Blue Ocean Strategy

This article covers meaning & overview of Blue Ocean Strategy from marketing perspective

Published by MBA Skool Team in Marketing and Strategy Terms Last Updated: August 08, 2023Read time:

What is 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


This article has been researched & authored by the Business Concepts Team which comprises of MBA students, management professionals, and industry experts. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.

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