Blue ocean strategy framework
The blue ocean strategy is a business approach of creating new markets and uncontested market space rather than competing in existing, crowded markets.
Blue ocean strategy framework
In short
Blue ocean strategy framework explained
In the increasingly competitive and rapidly changing business landscape, companies must constantly innovate and differentiate themselves to survive and thrive. The blue ocean strategy is about creating and capturing uncontested market space, making competition irrelevant. It is based on the view that market boundaries and industry structure are notfixed and can be reconstructed by the actions and beliefs of industry players.
The blue ocean strategy is a business approach of creating new markets and uncontested market space rather than competing in existing, crowded markets.
Blue ocean strategy framework
Who made this tool?
Professors and business strategists Chan Kim & Renée Mauborgne developed the strategy framework and are co-director of the INSEAD Blue Ocean Strategy Institute.
When to
use this tool.
The blue ocean approach is particularly relevant for companies looking to increase market share in a crowded market or create a new market. It is a central diagnostic tool and action framework that graphically depicts the current strategic landscape and future prospects for an organisation in one clear picture.
How to use this tool.
Analyze
Analyze the current state of the industry you're in and reconstruct the market boundaries.
Identify
Identify potential blue ocean opportunities by looking for unmet customer needs or areas of low competition.
Develop
Develop a blue ocean strategy that focuses on creating and capturing value in the new market space.