{"id":28728,"date":"2022-12-28T12:49:28","date_gmt":"2022-12-28T12:49:28","guid":{"rendered":"https:\/\/www.growthmentor.com\/location\/athens\/blue-ocean-strategy-copy\/"},"modified":"2023-01-17T09:44:23","modified_gmt":"2023-01-17T09:44:23","slug":"blue-ocean-strategy","status":"publish","type":"glossary","link":"https:\/\/www.growthmentor.com\/glossary\/blue-ocean-strategy\/","title":{"rendered":"Blue Ocean Strategy"},"content":{"rendered":"\n

What is a Blue Ocean Strategy?<\/strong><\/h3>\n\n\n\n

Definition of a Blue Ocean Strategy<\/strong><\/h4>\n\n\n\n

The term \u201cBlue Ocean Strategy\u201d is used to refer to the process of using a combination of low costs and differentiation to create a new market and to build demand for a product or service. It\u2019s all about tapping into a market that\u2019s currently underserved.<\/p>\n\n\n\n

The term comes from a book by Chan Jim and Ren\u00e9e Mauborgne that\u2019s called Blue Ocean Strategy and that\u2019s mostly known for establishing it as a term in the first place. Jim and Mauborgne also created the term \u201cred ocean\u201d. <\/p>\n\n\n\n

Red oceans are all of the industries that currently exist, the known and established market. Because they\u2019re already well-established, the rules of these industries are already known and widely accepted. Companies in red oceans aim to beat out their competitors by outperforming them to gain a larger slice of the pie. <\/p>\n\n\n\n

It\u2019s said that the reason that red oceans are red is that the cut-throat competition leaves everyone bleeding as companies fight each other for a limited pool of potential revenue. <\/p>\n\n\n\n

This makes it easier for people to picture blue oceans, because they\u2019re all of the industries and marketplaces that don\u2019t currently exist. Because of this, companies are able to create demand instead of fighting over the demand that\u2019s already there. <\/p>\n\n\n\n

Entrepreneurs like blue ocean strategies because it means that they don\u2019t need to worry about the competition. Their competitors are irrelevant because the market is yet to be created. Like a blue ocean, it\u2019s unfathomably deep and full of potential for them to explore. It also means that they don\u2019t need to play by the rules. <\/p>\n\n\n\n

Jim and Mauborgne have sold over four million copies of their book, and one publication named them the #1 management thinkers in the world. Their research is grounded in a ten-year-long study of 30 different industries across over 100 years, which means that we can safely assume that they know what they\u2019re talking about. <\/p>\n\n\n\n

Their first book \u2013 Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant \u2013 was later followed up with a second, Blue Ocean Shift: Beyond Computing \u2013 Proven Steps to Inspire Confidence and Seize New Growth. <\/p>\n\n\n\n

One of the major benefits of blue ocean strategy is that it doesn\u2019t require a huge amount of investment to get a company off the ground. Adherents of the concept say that it allows them to max out their opportunity while keeping risk as low as possible. <\/p>\n\n\n\n

Another key concept is that companies can simultaneously pursue both differentiation and low cost, allowing consumers and customers to get value and affordability at the same time.<\/p>\n\n\n\n

What Are Some Examples of Blue Ocean Strategies?<\/strong><\/h4>\n\n\n\n

The start-up world, the business world in general and even popular culture are all rife with examples of blue ocean strategies. Just a few of the most well-known examples include: <\/p>\n\n\n\n