BLUE OCEAN Strategy

Blue Ocean Strategy provides a holistic approach to make competition irrelevant. It highlights six principles that every company can use to formulate and execute blue ocean strategies. The six principles shows how to reconstruct market boundaries, focus on the big picture, reach beyond existing demand, get the strategic sequence right, overcome organizational hurdles, and build execution into strategy. Ocean refers to the market and Blue Ocean refers to the uncontested markets, which provides little or no competition. The main idea behind Blue Ocean is to create a product or service, which does not exist, and can attract customers. An essential concept is that the innovation (in product, service, or delivery) must raise and create value for the market, while simultaneously reducing or eliminating features or services that are less valued by the current or future market. A million dollar page or gmail is a good example to Blue Ocean Strategy. The blue oceans denote an environment where products are not yet well-defined, competitors are not structured and the market is relatively unknown. Companies that sail in the blue oceans are those adept at beating the competition by focusing on developing compelling value innovations that create uncontested market space.