How to find the Blue Ocean where competition is irrelevant

How do you find your Blue Ocean?

Too often, companies benchmark themselves in terms of the competition and, based on those insights, define their strategy. This immediately gives you an entrance ticket to the bloody red ocean in which the only way to protect yourself is by fighting others. The creators of the blue ocean, however, act in the opposite way — they ignore the competition and rather focus on developing value innovation.

Figure 1

How do I know if my Blue Ocean is really blue?

Well, let’s say you have an idea, which sounds amazing. You feel like you have discovered a new blue ocean, but you still lack confidence to go full speed for implementation. In this case, you can test yourself against three criteria: focus, divergence and compelling tagline.

Six principles for implementing a Blue Ocean Strategy

Creating a Blue Ocean Strategy sounds very attractive, but it’s not easy. That is why the authors of the Blue Ocean Strategy book have created a Six-Principle framework, which serves as a guide for companies to implement.

Figure 2. Source: “The Blue Ocean Strategy” book by W. Chan Kin and Renee Mauborgne
Figure 3
  1. Is there exceptional buyer utility in your business idea?
  2. Is your price easily accessible to the target mass of buyers?
  3. Can you attain your cost target to profit at your strategic price?
  4. What are the adoption hurdles in actualizing your business idea? Are you addressing them upfront?

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Agne Nainyte

Agne Nainyte

Digital Transformation Consultant at Schuberg Philis and blogger at https://nainyte.com/