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All you need to know about: The Blue Ocean Strategy

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Examples of Blue Ocean Strategy being used

Global Storefronts - Websites

Crowdfunding - Kickstarter and GoFundMe

Trust in Transactions - Paypal and Alipay

Global Advertising - Twitter and Youtube

Business Tips to be successful

  • Believing in one another and product.
  • Always learn and improve.
  • Create a Business where customers, employees, shareholders and society WIN.
  • There is no such thing as a Perfect Business
  • To improve the quality of our success we need to study what we did that made a positive difference and understand how to replicate it systematically
  • Industries never stand still, They continue to evolve
  • To win, Companies must stop competing with each other
  • The only way to beat the competition is to stop trying to beat the competition.
  • Companies must go beyond competing in order to seize new profits and growth opportunities
  • Today’s industries - were then unknown that are now multibillion industries

          Ex: Cellphone, Laptops, Routers etc….

  • Companies caught in the red ocean followed a conventional approach a racing to beat the competition by building a defensible position.
  • Instead of focusing on beating the competition, Companies should focus on making the competition irrelevant by creating a leap in value for buyers and your company.
  • This is how to be a new and uncontested market space
  • There is no such thing as a riskless strategy, Strategy will always involve both opportunity and risks.
  • Always create a strategy to ensure that both you and your customers win as you create new business terrain.
  • Driving the costs down while simultaneously driving the value up for the buyers is how to leap in value for both company and its buyers is achieved  
  • To set a company on a strong, Profitable, growth trajectory in the face of industry conditions, it won't work to benchmark competitors and try to outcompete them by offering little more for less.
  • Sales may go up a little BUT it will hardly drive a company to open up uncontested market space
  • There is a fundamental change in what buyers value. So companies that are focused on benchmarking one another do not act on or even perceive the change
  • Determine whether the product or service have been overdesigned in the race to match and beat the competition. Then observe customers, increasing their cost structure for no gain.
  • Uncover and eliminate the compromise your industry forces customers to make
  • Discover entirely new sources of value for buyers and shift the strategic pricing of the industry

Golden: Grow the market - Create a new market.

  • In order to swim in the Blue Ocean, you must improve your competitive position and not worry what your competitors are doing.


  • Ex: Home Depot was swimming in the blue ocean because it offered the expertise of professional home contractors at markedly low prices than any other hardware stores.


A company caught in the Red Ocean

  • When a company’s value curve lacks focus, its cost structure will tend to be high and its business complex in implementation and execution.
  • When a company strategy is me too, with no reason to stand apart in the marketplace.
  • When a company lacks a compelling tagline that speaks to buyers
  • When a company strategy is based on outdoing their competition on the basis of cost and quality.

Overdelivery without no Payback

  • If companies oversupply its customers, offering too much of those elements that add incremental value to buyers it will lose value and will gain no Payback
  • Always - Reconstruct the market boundaries to create and swim in a Blue Ocean.

Strategic Contradiction

  • Strategic Contradiction are areas where a company is offering a high level of one competing factor while ignoring others that support that factor
  • Strategic inconsistencies can also be found between the level of your offering and your price.
  • Ex: Investing heavily in making a company's website easy to use but fails to correct the site’s slow speed of operation.


Red Ocean

Blue Ocean

  • Compete in existing Market Space.

  • Beat the Competition

  • Exploit Existing Demand

  • Make the value - cost trade-off

  • Align the whole system of a firm's activities with its strategic choice of differentiation or low cost
  • Make uncontested market space.

  • Make the competition irrelevant.

  • Create and capture new demand.
  • Break the value.
  • Align the whole system of a firm's activities in pursuit of differentiation and low cost.

Strategies that keep companies trapped competing in the Red Ocean.

  • Define their industries similarly and focus on being the best within it.
  • Look at their industries through the lens of generally accepted strategic groups (such as luxury automobiles, economy cars, and family vehicles.) and strive to stand out in the strategic group they play in.
  • Focusing on the same point in time - and often current competitive threats in formulating strategy.
  • Focusing on their competitors instead of their company.
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