According to Blue Ocean Strategy, “Cutthroat competition leads to nothing but a bloody red ocean of rivals fighting over a shrinking profit pool.” This is the assertion made by the company. Rather of doing so, firms should focus on expanding into new areas and finding methods to alter the way things are done in their industry. Avoid engaging in head-to-head competition and instead concentrate on coming up with fresh ideas.
Blue Ocean Strategies are designed to assist firms in locating and expanding “blue oceans,” which are markets that are uncontested and growing, while avoiding “red oceans,” which are markets that are overdeveloped and overcrowded. As a result of operating in a blue ocean market, a company will have more success, reduced risk, and increased profits.
The typical management work of examining figures and comparing them to those of rivals is not the same as this approach for strategic planning.
A number of the models that are used for strategic planning are founded on concepts that, when put into practice in the actual world, do not exactly work out as expected. On the other hand, the Blue Ocean Strategy was developed as a result of a research was carried out over the course of ten years and examined the achievements and failures of organizations operating in more than thirty distinct sectors. Not because it is based on notions that have not been verified, but rather because it is founded on facts.
When you use the Blue Ocean technique, your objective is not to achieve the highest level of success in your industry or to get an advantage over your rivals. As an alternative, you wish to expand the boundaries of your company and operate in that new sector, so removing the possibility of competition from the business equation.
In accordance with the Blue Ocean Strategy, consumers are not required to choose between price and value before making a purchase. In order for a company to achieve both differentiation and low cost, it must first determine what it is that consumers value at the present moment and then reimagine how it might provide that value to them.
The Blue Ocean Idea Index is a component of the overall plan that enables companies to determine whether or not their ideas have the potential to become lucrative enterprises. Through the use of this strategy, ideas may be improved, and the most promising solutions can be identified while simultaneously reducing risk.