Blue Ocean Strategy (part 1)
Created by Renee Mauborgne and W. Chan Kim in 2004 and published in the book Blue Ocean Strategy, it is a business strategy that is based on searching a new market as if it were a blue ocean, as if it were a beach that has not been discovered.
When we want to relax and decide to go to the beach, when we arrive, we meet thousands of people who have had the same idea, so this strategy proposes that instead of staying on the beach fighting for a place, you go out and look for another beach one with a blue ocean where you can enjoy , this is something metaphorical and the idea is to apply it to the business world, the idea is to search and find a market where you are the first to arrive and have everything to yourself from the beginning.
Many companies fight to see who sells cheaper, they fight to take the other's customers, something that ends up hurting the companies in dispute, the blue ocean strategy proposes to create new markets instead of competing in those already established, according to the authors Contrary to this blue ocean, there is a red ocean full of blood and war between companies that compete in saturated markets, with few customers and little room for growth.
The business models of the red oceans start from the military world, where they are an open war against competition, where if you want to grow as a company you must defeat your enemy and thus you will grow, usually this type of maneuver damages the market itself, affecting the price.
In a blue ocean, companies take risks and there is no battle, at least at the beginning in this way you can generate a lot of profits and a lot of value as a company, but the secret and the key to this is to innovate, of course you can also with a product that You already manage attack another market segment that you had neglected, and thus reach the blue ocean.
Red oceans companies believe that the structure of their industry is immovable and that is why they must conform to it and never innovate, on the other hand, blue ocean companies are capable of improving and rebuilding the foundations of their industry and taking it to other levels, to that the authors created strategies, but I'll talk about that another time.
Thank's for read
An excellent comparison and explanation. large companies are leaning towards environmentally friendly tendencies and using innovative new ideas to produce products that solve many different types of problems. It is very true what you say about the arms business and war, because especially government companies find great profits in this sector.But I trust that the general mentality in all humanity is changing, and in fact with this pandemic the business model has improved from my point of view Allowing many people to work remotely and forcing companies to allow this to be done.
So I see that the paradigms in terms of the way of doing business are changing and this is very positive for everyone.I think we are witnessing the next step in the evolution of companies and of us as humanity Interesting your reflections,I congratulate you.
This is a friend for us to evolve as a species, the business concept must evolve, thanks for your interesting and nutritious comment
Nicely explained and how this can help companies to move ahead with risk and grab some profits in this situation. Its a new topic for me and I enjoyed reading it. Nice post.
@tipu curate
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thank's for read
When you are the first to discover a new market, you will hit it big ( make more profits) before other rush into it.
The one who arrives first enjoys that market more, thank's for read
Hello @ramsesuchiha
Excellent reading, I totally agree with this criterion, the innovation of companies and the constant search for renewal is fundamental.
Thank you for sharing the information.
Happy weekend.
Best regards.
Thank's for read
Hello friend @ramsesuchiha
First time, that I read about this book "Blue Ocean Strategy", it gives the impression that it is a nice read full of strategies from the psychological, in the search of making entrepreneurs to improve their productive systems. A manuscript of obligatory reference, cordial greetings, be well and thank you for socializing this type of content.
It is a very interesting book with many truths about the business world, thank's for read