Blue Ocean Strategy (What It Is, Origin And Basic Principles)

The blue ocean strategy is presented as a solution for every businessperson or entrepreneur who wishes to start in a competitive market, emphasizing innovation and exploitation of new markets that provide better opportunities, putting aside destructive competition and seeking rivalry to be the less.

This management strategy broadens horizons, so that a brand can find new opportunities and generate additional value, so that competitors are irrelevant.

If you want to know more, continue reading.

What is the origin of the blue ocean strategy?

It was created in 2004, after Renée Mauborgne and W. Chan Kim will release a book with the same name. Its publication was considered a paradigm shift, where it encourages to see business from another perspective, exploring spaces called "blue oceansWhat area those that have not been explored.

What is the red ocean and the blue ocean?

For its creators, the red ocean It is the busiest by all companies today, where day after day they compete for leadership in the market. Your goal is to prevail over your rivals who are well defined.

On the other hand, the blue ocean they are sustainable and profitable ideas that have not yet materialized in the present. That is, unexplored markets. Innovation makes opportunities entirely new, creating a single market and new demand.

Principles of the Blue Ocean Strategy

There are 6 basic principles in the blue ocean strategy:

1. Widen the market: the market frontiers can be rebuilt as many times as necessary. You do not have to travel the same path, as if it were the only option. The first principle is to expand the current market, analyzing the business options that can be offered.
2. Define the action plan: it is necessary to define the strategy to follow when finding the business opportunity. Each company will carry out this step according to its creative potential.
3. Land exploration: to test and assess those lands that have not yet been explored, or that at the moment have not been fully exploited.
4. Create a strategy: After finding the ideal market, you have to design a new strategy that shows all the qualities of the product or service. Always according to the needs of consumers.
5. Face obstacles: it is necessary to allocate the necessary resources to solve and face the obstacles that may arise during the execution of the plan.
6. Implement the strategy: it only remains to implement the strategy and always evaluate the results obtained.

Important aspects in the blue ocean strategy

Without a doubt, this book offers a very interesting strategy, but its risk is also great, since navigating an unknown ocean can cause us to end up shipwrecked.

On the other hand, it must also be taken into account that a blue ocean can turn red over time, since that, faced with an attractive business idea, began to bring competitors attracted by the new opportunities.

Of course, the first to innovate will be much stronger, but do not fall asleep simply because you have created the business idea.

Examples of the blue ocean strategy

The creators give an example of Cirque du soleil, who created a new formula by making their competitors irrelevant. They eliminated the traditional style of a circus, with animals, many shows, traditional promotions and star performers. They created an elegant environment with music, themes and choreography, increasing the artistic value and reducing other less important aspects.

There are also other clear examples, for example:

• The Nintendo WiiAfter years trying to keep up with its competitors, the company decided to renew its products and look to a less traveled market, with younger sectors. With this change, I designed a console where the family could play together, including all members.
• Little Cesar's Pizza: This fast food chain was stagnant due to high market competition. So he decided to meet the needs of those people who decided not to choose the chain for the times they had to wait for the order, creating a new concept of "Hot Pizzas at instant". In this way it began to multiply internationally.

With these 2 examples we can see the power of the blue ocean strategy, with results that may be juicy enough to start considering it as a possibility in the market.

It is necessary to take into account the consequences and the risks that it may have, but if it is implemented in an organized way and following the basic principles, it can be a key piece in the success of a company.

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