Creating New Uncontested Markets

Blue Ocean Strategy is about revolutionary value innovation.  It helps you create customers and stand out from the competition.  >>>

Value innovation is created in the region where a company’s actions favorably affect both its cost structure and its value proposition to buyers.

Blue Ocean Strategy

Creation of New Markets

Red Ocean Strategy

Head To Head Competition

Create uncontested market

Compete in existing markets

Make the competition irrelevant

Beat the competition

Create and capture new demand

Exploit existing demand

Break the value-cost trade-off

Make the value-cost trade-off

Blue Ocean Strategy

In case of revolutionary value innovation (radical innovation), the strategic aim is to create new best-practice rules by breaking the existing value-cost trade-off and thereby creating blue ocean.

To define a blue ocean strategy, you should look across alternative industries, look across strategic group within industry, redefine the industry buyer group, look across to complementary product and service offerings, and participate in shaping external trends over time. You need to stand apart in the marketplace. So, your strategy must deviate from me-too-ism, and your value curve must diverge from industry standards.

Outstanding Value Innovation

Blue Ocean Strategy is about revolutionary value innovation.  >>>

It helps you create customers and stand out from the competition.  >>>

Value innovation is created in the region where a company’s actions favorably affect both its cost structure and its value proposition to buyers.

Cost savings are made by eliminating and reducing the factors an industry competes on. Buyer value is lifted by raising and creating elements the industry has never offered. Over time, costs are reduced further as scale economies kick in due to the high sales volumes that superior value generates... More

Venture Strategies and Blue Ocean Strategy

"We don’t have a traditional strategy process, planning process like you’d find in traditional technical companies. It allows Google to innovate very, very quickly, which I think is a real strength of the company." ~ Eric Schmidt

“Blue Ocean Strategy” has a lot in common with the well-known term “Venture Strategy.” Venture strategies have been being practiced by many market leaders for decades. There are some difference between “Venture Strategies” and “Blue Ocean Strategies”. Venture strategies deal specifically with technology innovation that must be brought to the market very fast.

"Blue Ocean Strategy" talks about value innovation in general; speed-to-market is not emphasized.

Strategies of Market Leaders