Blue ocean strategy within competitive intelligence
Sheep are like many businesses. Wander around, grazing in the same field as their competitors, following the herd as it follows the latest new industry trends and statistics.
It’s hard to distinguish one company from another when looking into the field. Their thick wool coats blend into a sea of white as far as the eye can see. You see, in your market, no one is likely providing anything unique, and no product or service ever really stands out. They all look, behave, and feel pretty much the same, just like the sheep.
Red sheep
How about becoming a red sheep? A non-conformist that went against the flow. A rebel. A maverick standing out in your field :-). Challenging customers with a new, diverse, and distinctive product or service. A daring move to go against the grain.
So, why not seek out a unique route for yourself?
Darwinian strategies have historically benefited businesses the most as they compete against one another for the largest market share.
The Darwinian strategy has often described business success. This is the survival of the fittest. But Darwin did not write about the survival of the fittest. He actually described his theory as survival of the most adaptable.
Redbull gives you wings
Redbull has tried and is successful but will Pepsi or Coca-Cola ever going to be seriously challenged in the fizzy drink industry? Many industries have become saturated due to intense competition, reducing the likelihood of higher profit margins from the increased market share. Instead of fighting over demand, why not create new markets where demand is made, and competition is nearly irrelevant? Why not seek out a unique path for yourself? Redbull has done this by focusing on the caffeinated soft drinks sector. Why not create your blue ocean strategy?
In their book of the same name, W. Chan Kim and Renee Mauborgne first described the Blue Ocean Strategy.
So rather than staying in the field full of sheep, Blue Ocean Strategy asks you to decide whether you want to pursue an untouched, uncontested market segment.
What is Blue Ocean strategy?
Blue Ocean Strategy is a business strategy developed by W. Chan Kim and Renée Mauborgne that focuses on creating uncontested market space to make competition irrelevant. It encourages businesses to focus on creating customer value and optimising their resources to stand out from the competition. The idea is that companies can create new markets rather than compete in existing ones, thus avoiding the competitive pressures of an overcrowded market.
What is the Red Ocean strategy?
Red Ocean strategy is a business term that describes a highly competitive market. It refers to the idea of companies competing against each other for the same customers and resources in an already saturated market. Companies must find ways to differentiate themselves from their competitors in order to succeed in such a market. This often involves creating new products, services, or pricing structures that give them an edge over their rivals.
Find the stormier seas
The results will be revolutionary if you successfully pursue an untouched, uncontested market.
Before comprehending the distinction between Red and Blue Oceans, we must leave our simple, sheep-filled pastures for the stormier seas of the ocean.
A fishing boat has just left port, and your company likes it. Several other fishing boats are heading in the same direction as you, leaving port to head for the richer fishing waters just off the cornish coast. You can expect to see a lot of boats at the spot you’re headed, which is known for producing huge catches under the right conditions, resulting in intense competition.
You own the Red Sea. There is a lot of competition for clients among the firms. Fishing boats, in this instance.
There are even more boats from other ports entering the rich fishing grounds. Resulting in less and less fish available, and it is becoming increasingly difficult for each boat to remain financially solvent.
Too much fighting
It’s time to begin fighting. Blood is spilt when your competitors hack you to pieces over pricing, quality, and low-margin profits until a victor emerges. An alternative to the typical business strategy is available.
Rather than departing port to fish well-known spots, you turn left in the opposite direction. Your goal is to fish an unfamiliar part of the coast further up the coast that has not yet been fished. There’s a good chance you’ll catch something because it’s never been fished before.
Live and work in a different pool
Your main goal here is to create a blue ocean market space. If you are correct about a brand new, exciting, yet untested future market space. Your current competitors will be made insignificant, and you may attain untold success. Your competitors will be left floundering if you find yourself in open water.
Better than competing for the same customer pool in an established yet saturated market space. It’s a sluggish and expensive battle for their attention is endless, and you are the only one fishing for customers in a Blue Ocean.
Creating and sustaining profitable growth can be achieved through the systematic approach described in the Blue Ocean Strategy. The idea is that cost and value must be balanced. Rather than striving to provide product differentiation and cost reduction, as Blue Ocean Strategy suggests, we seek to reduce costs and supply unique products to generate value for both the company and consumers.
Blue ocean strategy within competitive intelligence
In conclusion, the Blue Ocean Strategy is a powerful tool for companies to create and maintain a competitive advantage in the market. It’s an innovative approach to a business strategy that encourages firms to look beyond their immediate competition and focus on creating customer value through the creation of new markets. In addition, Blue Ocean Strategy helps organisations use resources more efficiently by looking for uncontested market spaces where competition is rendered irrelevant.
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