Escape the tough competition and swim away into the peaceful blue ocean. The Blue Ocean strategy by W. Chan Kim and Renée Mauborgne is about conquering new markets (Blue Oceans) through innovation, instead of competing with the competition in an already saturated market (Red Ocean). Blue Ocean Strategy: Break away from the competition.
We take a close look at what the innovative business strategy is all about and how you can use it to benefit your company. We also illustrate the Blue Ocean strategy using examples and show you the advantages and disadvantages of the concept.
In this article
Definition of the Blue Ocean Strategy
Value Innovation
Blue Ocean vs. Red Ocean – What’s the Difference?
How can you use the Blue Ocean Strategy?
ERSK square
Increasing benefits, reducing costs
Examples from practice of companies and brands
Cirque du Soleil
Nintendo Blue Ocean Strategy: Break away from the competition.
Starbucks
Advantages and disadvantages of the Blue Ocean Strategy
Advantages
Disadvantages
Conclusion
Definition of the Blue Ocean Strategy
Chan Kim and Renée Mauborgne. In short, it is about developing an innovative concept with which to open up new markets. The focus is on making the business model both more sustainable and more profitable. Blue Ocean Strategy: Break away from the competition.
Instead of competing to continually expand the range telegram users lead of products and always present the best price-performance ratio, an opposite path is taken. Rather, it is about highlighting a unique selling point that allows the company to stand out from the crowd.
Value innovation
The Blue Ocean strategy is based on Прадукцыйнасць продажаў the concept of value innovation (also called value innovation). The creation of new markets through differentiated products or services and the simultaneous effort to reduce costs not only benefits the company itself.
Added value is also created for the customer. Value atb directory innovation is not about being better than the competition, but about having no competition at all. This is done by changing the existing environment. It will go into the blue ocean, which is still free of competitors. The Red Ocean concept, on the other hand, focuses on an established market. Here, competition can sometimes get rough. Metaphorically speaking, blood flows in battles for the coveted oceans, which explains the red color.
Blue Ocean vs. Red Ocean – What’s the difference?
The Blue Ocean strategy is opposed to the Red Ocean strategy. The choice of color was not left to chance. The former is about opening up new markets.
Blue, on the other hand, stands for neutrality, distance and security – where there are no enemies, war cannot be waged. Let’s look at the two strategies in a brief comparison.
ERSK square
The ERSK square consists of four individual squares with the points Eliminate, Reduce, Increase and Create. Answering the questions about the individual areas should enable you to redefine your offer.
On the one hand, this is about cost optimization, which results from the points Eliminate and Reduce. On the other hand, the benefit should be increased, which is what the points Increase and Create are for.
How can you use the Blue Ocean Strategy?
You can’t reinvent the wheel – or can you? You can safely put aside the popular phrase “We’ve always done it this way and it will stay that way” with the Blue Ocean Strategy.
New ways of thinking, creative ideas and innovations. Are required if you want to benefit from the blue ocean strategy. But how do we start to venture into uncharted waters?
The first step is to question your current business model and. Then consider in which areas change can be made. The ersk square provides information about. Which questions can and should be asked specifically.
