The blue ocean strategy is one of them, devised by W. Cham Kim and Renée Mauborgne, both professors at the European Institute of Business Administration (INSEAD), who created this concept in 2005, through the publication of their book of the same name.
It starts with the promise of guiding companies to find new markets through innovation, free direct competition, creating and capturing uncapitalized places. In this theory, two types of imaginary strategic spaces are conceptualized. On the one hand, there is the blue ocean, an area within any market that has not been explored and that has the potential to generate profitable and sustainable growth. On the other hand, there are red oceans that represent the industries that exist today, in other words, the already known space of the markets.
This is the area where boundaries are clearly defined and accepted by companies that choose to compete there. The rules of the game of competition are understood and accepted by everyone.
The logic that prevails in red oceans is that of competition, outperforming rivals to gain a larger korea whatsapp number percentage of market share. This also means that when competition increases, companies start attacking each other, just like sharks, which ends up filling the water with blood and turning it into a red ocean.
There are two main ways to create blue oceans. The first is to create an industry from scratch, that is, a completely new competitive space that does not originate in another market. The second, which is the most common because there are generally few disruptive companies that can create industries from scratch, is to alter the boundaries of an existing industry to create a new market space.
Cham Kim and Mauborgne explain that: “The best way to beat the competition is to stop trying to beat the competition.” That is, to capture a new demand and make the competition irrelevant.
An example of success is the case of Cirque Du Soleil, which challenged the guidelines and concepts defined in the market, creating something new that had no competition. To do this, it exhibited a new version of something that seemed repetitive, managing to redefine acrobatics and creating new ways to entertain its spectators.
To achieve its goal, the company aimed its show at a more mature audience with more artistic tastes, creating a dramatic as well as intellectual spectacle for its audience. Thanks to its innovation, it established itself as one of the best circuses in the world.
Next, let’s look at three key points for developing and maintaining a blue ocean strategy.
Prevent your ocean from turning red at all costs.
It's natural when starting a business to keep an eye on the competition, but when you pay too much attention to your rivals you're likely to end up neglecting the most important thing: focusing on a blue ocean. Don't focus on beating the competition.
Create more demand than already exists .
It is important to have the ability to see beyond, that vision that only entrepreneurs have, their creativity and innovation are winning cards. A relevant question: How do I increase the value I deliver to my clients?
Create your strategy and execute it.
To reduce the risk during the execution of this strategy, create your navigation map. Keep in mind that to be able to create a blue ocean for your company, you must have the conviction to innovate with your products and offer something of greater value instead of staying in your comfort zone.
The blue ocean strategy will allow us to put aside the logical thinking of focusing on the competition, where the fight for positioning and market share is voracious, ruthless and the playing field is increasingly narrow.