Published by MBA Skool Team, Last Updated: March 30, 2016
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-
Scope of product or service offering
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.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
Browse the definition and meaning of more similar terms. The Management Dictionary covers over 2000 business concepts from 5 categories.