Have you ever heard of the Blue Ocean strategy? This is a growth strategy based on the book Blue Ocean Strategy: How to Create Uncontested Market Space and Make Competition Irrelevant by W. Chan Kim and Renée Mauborgne. It has a unique approach to growth, and one that has proved useful to many renowned companies. Today, we’re going to see what the Blue Ocean strategy entails. Moreover, we’re going to provide you with 3 real life examples of businesses that have used it successfully.
Blue Ocean Strategy Definition
According to Kim and Mauborgne, the Blue Ocean strategy looks for sustainable growth, without companies having to engage in aggressive competition with their rivals. Given the fact that nowadays, most industries are already overcrowded, competition would end in a red ocean, due to all the spilled blood. Which is why the two authors propose a Blue Ocean strategy. This is the ability to create brand new industries that are yet untapped. That way, no one would have to worry about competing over a shrinking industry.
The strategy entails differentiation and affordable prices, it creates new market spaces, it helps businesses move past the competition, it’s a process that you can explore step by step, it minimizes risks, it increases opportunity, and it provides a win-win outcome.
3 Examples of Businesses Using the Blue Ocean Strategy
As we’ve already mentioned, there are a lot of businesses that decided the Blue Ocean strategy was the best for them. Here are 3 of the most notable ones.
Canon created the industry of the personal desktop copier. This is an excellent example of the Blue Ocean strategy at work. They managed to shift the target customer, and put the focus on users rather than on corporate purchasers. They also focused on what kind of competitive factors the noncustomers (or the secretaries) desired. Canon defied conventional expectations, and managed to unlock an entirely new industry that they used for growth and development.
Another great example of a business that managed to use untapped potential in order to provide users with a completely innovative experience is Apple. By launching iTunes, the company opened a new market, that of digital music. If you want to understand how significant this strategy was, you should just consider how iTunes is still the leading force in digital music today. You can find music, books, movies, television shows, and even podcasts on iTunes. This shows the success the company enjoys due to the Blue Ocean strategy.
The third and final example we’ve prepared for you today is the company Philips. They decided to focus on the teakettle industry and offer complementary services and products. The problem British people faced was not the teakettle itself, but the water, which contained limescale. This issue didn’t connect to the kettle industry, but to the public water supply one. Philips quickly understood that, and took advantage of this opportunity in order to create an innovative kettle that would solve this problem.
We hope today’s article told you what you wanted to know about this strategy, and that the 3 Blue Ocean strategy examples above inspired you to use it yourself.
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