Surviving in a saturated market isn’t easy and high competition heavily affects profits. At such times, exploring deep waters can open up new markets and establish a monopoly. A pacifist marketing scheme can allow an organization to utilize the vast potential of unexplored market spaces. Blue ocean strategy is a path-breaking tool in strategic planning that prevents benchmarking the competition and creates a unique profitable space in the market.
Read on to know more about blue ocean strategy with example.
What Is Blue Ocean Strategy?
Blue ocean strategy is a scheme to devise and acquire uncontested market forums by creating new demand. Blue ocean strategy examples reveal that new demand is created by offering familiar products with upgraded or advanced features. These products have unique characteristics that make them stand out.
Blue ocean strategy examples prove that the approach is important for an organization’s growth because:
- It improves productivity
- Blue ocean examples help in making advancements in technology
- A blue ocean strategy 4 actions framework example shows price competition analysis, shrinking margins of profit and strategic drawbacks
- Blue ocean examples attest that products can go global
Blue ocean strategy examples demonstrate that this strategy encourages organizations to offer valuable products to their customers.
Principles Of Blue Ocean Strategy
Blue ocean strategy company examples show how this strategy can challenge an organization to look beyond the competition. It’s based on detailed studies of strategic moves across several industries. Blue ocean strategy examples exhibit the following principles:
- Create new factors to reduce competing factors and lower costs
- Tap into uncontested spaces in the market to make competition irrelevant
- Use 4 actions framework and common strategic patterns
- Offer step-by-step processes for the management in place of traditional strategies
- Maximize opportunity, mitigate risks and increase chances of success
- Include process and tools to ensure employee support
- Align people, profit and value to ensure sustainability
Blue ocean examples are proof that this strategy aligns innovation with price, utility and cost position. Managers must look at blue ocean strategy with example to find and develop blue ocean markets and boost their organization’s growth and profitability.
4 Actions Framework In Blue Ocean Examples
The 4 actions framework crafts a new value curve by reconstructing buyer value elements. A blue ocean strategy 4 actions framework example shows that this framework adds new values to the strategic profile. It breaks the trade-off between low cost and differentiation to create a new value curve. A blue ocean strategy 4 actions framework example will demonstrate these four key actions essential for value innovation:
- Generate value and create industry factors never offered before
- Reduce factors inconsequential for the new market
- Eliminate factors that have been the basis of competition in the industry for too long
- Raise factors relevant to the new market above industry standards
Observing a blue ocean strategy 4 actions framework example lets you know that these actions are fundamental in challenging the strategic logic of an industry. Organizations must have executives who can work with such frameworks to drive innovation.
Blue Ocean Strategy Company Examples
Blue ocean strategy company examples depict that innovation doesn’t always mean developing a new product. You must study blue ocean strategy with examples to understand how blue ocean examples have been used by organizations to improve strategies and create demand.
iTunes is one of the blue ocean strategy company examples that revolutionized an industry. They increased profits, dealt low album sales and controlled piracy by allowing people to buy single songs on a digital platform.
Uber’s model is popular among blue ocean strategy examples. They transformed the transport industry by introducing a low-cost business model for cabs that were easy to book, didn’t deny service and had fixed fares. This suited all parties and Uber made profits without owning a single cab!
Canon is one of the blue ocean strategy company examples that highlights the advantages of calculated risks. Canon decided to focus on individual customers by making printing devices for homes, unlike their competitors who catered to large industries. Their products quickly became popular and created a niche.
Executives must have leadership and management skills that enable them to look past short-term ambitions. Managers from all industries must use blue ocean strategy examples to learn how to increase shareholder value.
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