Obtained from Blueoceanstrategy.com
So what is the Blue Ocean Strategy?
This strategy is based around creating a market space or ‘Blue Ocean that does not exist. There is currently no market available and one is created based around an idea or a concept.
The perfect example is the I-pod. This is a product that was created based off of an idea and not an actual market. The work “I-pod” has no real meaning or significance to it because it is a one of a kind product that cannot be replicated.
Using the Blue Ocean Strategy is an ingenious idea of you have the right product and have enough of a market to want that product. Most people that try to accomplish this strategy usually fail miserable because it is hard for people to grasp the idea of a new concept.
The main reason why the I-pod was so successful, is due solely to the fact of having an innovative CEO like Steve Jobs and a proven company, like Apple, with a track record of success. If it had of been a brand new company coming out with the I-phone, it would have been very hard to capital on any success that the product would have had.
Here are five key points from BlueOceanstrategy.com that can help you get a better understanding of the actual strategy.
- The three key conceptual building blocks of BOS are: value innovation, tipping point leadership, and fair process.
- These frameworks and tools are designed to be visual in order to not only effectively build the collective wisdom of the company but also allow for effective strategy execution through easy communication.
- As an integrated approach to strategy at the system level, BOS requires organizations to develop and align the three strategy propositions: value proposition, profit proposition and people proposition.
- The aim of BOS is not to out-perform the competition in the existing industry, but to create new market space or a blue ocean, thereby making the competition irrelevant.
- While competitive strategy is a structuralist theory of strategy where structure shapes strategy, BOS is a reconstructionist theory of strategy where strategy shapes structure.
As you can see from the 5 points above, it is a real in-depth strategy that needs to be fully tested before acted upon. If you are a new entrepreneur, I would highly recommend that you not try to reinvent the wheel and try to invent something new because your chances of failure will greatly increease.
For those who are risk takers, I would like to know some of the results from your trials and if the attempt that you made of creating a new market was successful.
