Many markets are oversaturat with companies offering similar products and services. In conditions of such tough competition. The task of business is to get at least some number of clients, to take away a minimal part of the market.
Competition, although it stimulates development and pushes management to optimize production. Often directly interferes with earning high earnings. Enterprises have to invest additional funds in advertising, be distract by price wars. Constantly monitor the reputation of their brand and other market players.
That is why mium or small companies usually do not want to participate in the struggle and be in already establish markets with a large number of c level contact list competitors. The strategy of “blue ocean”, known in business circles, will help to break out of a highly competitive industry and completely rebuild the approach to doing business.
In this article, we will tell you what blue ocean strategy is. What types, principles, and methods of its application exist. We will learn how to find a blue ocean, what tools are available for building a company strategy, and also consider other issues on this topic.
What is the blue ocean idea?
Blue ocean strategy is a company’s development process generating knowlge from data in which it seeks to create a new market niche or unique product in its industry and completely separate itself from the competition.
The main idea behind this development strategy is to create a unique offer that opens up new opportunities for the company to grow its profits. Then there will be no ne to fight for market share within traditional and competitive industries.
Types of Markets: R and Blue Ocean Strategies
Chan Kim and Renée Mauborgne conditionally divide all existing markets in business into two directions or two strategic paths of development:
1. Scarlet or r oceans are long-standing industries america email list where companies create familiar products and spheres of influence are divid between participants. In such conditions, competition is extremely intense. Therefore, this type of market is characteriz by small profits, high costs, aggressive marketing, and frequent price wars.
But at the same time, there is always demand for the products. They are understandable to buyers, they are ready to buy them. Starting your business here, you will be sure that the product is in demand.
Principles of strategy
The blue ocean strategy is bas on a certain set of principles that determine the rules of its operation. Let’s consider the main ones.