Diving Deep Into The Blue Ocean Strategy
No matter how crowded a market space be, there is always a scope to make a room for yourself. However, some businesses don’t do it at all. They overlook the value of crafting a niche in the rampant competition. You know why? Because they have unlocked the key to something bigger and different. All they have to do is brainstorm a little.
Some of the businesses refuse to fit in. Because-
Blue Ocean Strategy!
Blue Ocean Strategy is the practice of the businesses where instead of competing in the traditional market, an entirely new market is created which annuls the traditional competition instead of surrendering or participating in it. It’s like reinventing the way utility is created and served, entirely. We live in a world where every day is a chance to open the eyes to a new innovation which leads us to the conclusion that there is always a market that is yet unexplored. And this is the underlying foundation of Blue Ocean Strategy. It is nothing but recognizing the potential market that is still untouched and unheard and ripping it off.
It’s All About Creating Round Pegs In A Square Hole
Unlike struggling to thrive in the traditional market with bloody competition and some giants already capping the bottle of the industry (Red Ocean), Blue Ocean is everything that denotes creating your own rules and playing it your own way.
While competing in a traditional market may appear comfortable and therefore, is chosen by maximum people out there, but staying confined within the boundaries of the Red Ocean comes with its fair share of pitfalls.
Why Red Ocean Is Bloody, Actually!
It’s pretty assumable. What would happen if the market is overcrowded with a vast number of ventures delivering the same products and services with little modification? In a nutshell, the growth will reduce considerably shifting the major focus on outgrowing rival firms instead of focusing on the quality of deliverable to the consumers.
Technological advancement has resulted in the speedier and wider manufacturing of the ends and as a cherry on the cake, globalization and reducing trade barriers have made their availability extremely mobile and easy.
This has led to the widespread supply that, according to researches, is overcoming the demand. Such availability of whatever the customers do and do not need has resulted in the commoditization of the products, boosted price wars which have in turn, reduced the profit margins. The fringe drawback of excess products in the market is that people soon start running out of their personal favorite when it comes to brands since the choice starts relying more on the factors like price.
Who cares what brand you are if you are offering the same products that are already abundant out there?!
If Blue Ocean Strategy Is So Powerful, Why Do People Step Back?
Comfort zone! There you have your answer in one word.
In a study conducting research on 108 companies, it was found that only 14% of these total companies channelized their operations towards creating a new market while 86% were only focussed towards incremental development of the existing offerings. The latter delivered only 39% of the total profit and the former reaped the revenues as high as 61%.
We Know What You Are Thinking Next
You might be relating the Blue Ocean Strategy to quite a few concepts like Disruption and Innovation but please allow us to-
Break The Myth
Blue Ocean Strategy is not Disruption.
It is quite understandable to confuse the two terms and conceive them as same. However, the two cannot dine on the same table. Blue Ocean aims at creating an entirely untapped market and creating demands that never existed. However, disruption involves destroying the traditional markets completely and replacing it with innovation.
They might not be the same thing, but they are complementary. In short, if a business creates a blue ocean, it will eventually lead to Disruption and there is no way you can stop it. For the successful operation of the business in this direction, it is adviced for the businesses to form a strategic alliance of both.
It is not Technology-centric
While technology may be the underlying building factor of the Blue Ocean Strategy but the innovation need not necessarily be in terms of technology.
Blue Ocean Strategy is definitely not a Monopoly
If you look closely at the definition of monopoly, it refers to establishing a monopoly price that is higher than your competitor. But when it’s about the blue ocean, there is no competitor.
- And not an innovation in true terms
An idea might be created out of a new idea but it is still not an innovation since innovation means a completely new idea that has never been implemented. If we talk about the first-ever smartphone, it was an innovation. But whatever followed later, was an extension or expansion of existing innovation. Innovation is a huge sphere and constitutes a lot of dimensions, the blue ocean is a part of innovation.
The Red Ocean might be deadly and full of chaos but unless it’s already a big shark, hardly can a fish transform into a whale in an environment like that. The world is infinite and the possibilities don’t seem to end anytime soon. So as long as it goes this way, choose The Blue Ocean to dive in.