It is very common in the business world that the entrepreneur considers it essential to know their competition – product, price, scope, value proposition, etc. – to know how to “defend or attack”, in short, how to position themselves in the market. And several scholars in the field believe that this understanding is essential for the success of the enterprise.
Blue Ocean Strategy, on the other hand, offers a new approach whereby, unlike a competitor playing a relevant and sometimes central role in our business strategy, it must, on the contrary, become irrelevant. The idea is to take your company out of the red ocean of bloody competition and navigate a blue ocean where the competition just hasn’t arrived. But how to sail in these waters?
WHAT IS THE BLUE OCEAN STRATEGY?
The expression “Blue Ocean” was coined by professors W. Chan Kim and Renee Mauborgne, in their best-selling book Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant.
They studied 150 strategic moves from 30 industries over 100 years. When analyzing 108 new business launches, they discovered that only 14% of them actually created new markets, while the other 86% simply developed line extensions, bringing nothing quite novel to the industry.
Moreover, the line extensions stood for 62% of total revenues, but only 39% of total profits. The new markets, instead, accounted for 61% of the profits. So, they have concluded that profits and growth would come, indeed, from new products and services in not disputed markets: the so-called blue oceans.
Exploring blue oceans was, consequently, much more successful than trying to beat the competition inside the red oceans. Thus, especially for industries infested with competitors, the Blue Ocean Strategy comes as a new approach and direction.
Dawgen Global Team can work with your Team to develop and implement a Blue Ocean strategy utilising Five (5) steps as follows:
1. Choose a place and team to start.
2. Analyze your current business model, the market, the competition, the demand.
3.Find out hidden problems that may provide a new ocean of buyers, based on former non-customers.
4.Create new market boundaries with alternative Blue Ocean opportunities.
5. Choose your moves through rapid market tests and, thus, launch the shift.
Dawgen Global offer BIG FIRM Capabilities without a big firm PRICE !! We assist clients in making Smarter and More Effective Decisions
Let’s have a conversation !Email us : [email protected]
