blue oceans strategies

Description

The authors argue

that companies should not fight for market share in bloody red oceans but instead create blue oceans through **value innovation**. This approach focuses on making the competition irrelevant by reconstructing market boundaries and creating new demand rather than battling existing rivals.

**Blue Ocean Strategy**

is a business framework developed by **W. Chan Kim** and **Renée Mauborgne** that directs companies to create uncontested market space (“blue oceans”) rather than competing in saturated markets (“red oceans”). The core principle is **value innovation**, which involves simultaneously pursuing differentiation and low cost to make competition irrelevant.

Key components include:

* **Value Innovation**: Breaking the traditional trade-off between value and cost to offer unique benefits while reducing expenses.

* **Four Actions Framework**: A tool to reconstruct market boundaries by determining which industry factors to **Eliminate**, **Reduce**, **Raise**, or **Create**.

* **Strategy Canvas**: A visual diagnostic tool to map current industry competition and identify opportunities for differentiation.

* **Non-Customers**: Focusing on creating demand among non-customers rather than fighting for existing market share.

Notable examples of Blue Ocean Strategy include **Cirque du Soleil**, which combined circus and theater to attract a new adult audience; **Netflix**, which created the streaming market by eliminating late fees and physical stores; and the **Nintendo Wii**, which focused on innovative motion controls rather than competing on high-performance graphics.