“BLUE OCEAN => BLUE – New market; Ocean – Huge Profit”
The life started in water & if blue resembles water, then blue ocean strategy can best depict jumping into new markets or enliven the dead player of stagnant market.
‘Don’t find customers for your products, find products for your customers
Change the place of competition. Tap the untapped demand with the already available product or service. This leads to reduced cost of experimentation or development of new product. Since the only thing that changes is market thus marketing and supply chain strategy changes, but in that also previous experience comes handy. In Blue ocean strategy, marketing plays a vital role.The marketer has to provide the best experience to customer with least time at optimum cost, also marketing communication reach should be large.
There is a risk of non acceptance by the new market but if succeeded, then no competitor can beat the first mover.
- Operating in uncontested (blue ocean) market places leads to faster growth and higher profits
- In a blue ocean strategy approach you want to pursue low cost and differentiation at the same time instead of one of the other
- Blue ocean strategy is the key behind some of the most successful companies including apple, Nintendo, Cirque du Soleil (the largest theatrical producer in the world), The Home Depot, and many more
- Using a blue ocean strategy has an incredibly high return on investment
Strategies related to tap different markets:-
Structuralist Strategy – growing demand and profits by having a traditional mindset to compete against companies in existing markets (the same as a red ocean strategy)
Reconstructionist Strategy – growing demand and profits by using a blue ocean approach.
Value Innovation – the simultaneous pursuit of differentiation and low cost of innovating a product or service for a market that does not currently exist while reducing or eliminating features or services that are less valued by the current or future market (possible when using a blue ocean/reconstructionist strategy)
INDIA, has become a hotspot for many multinational companies because of its huge untapped market. Thus India is the best place to leverage “Blue Ocean Strategy” which many companies have leveraged. Expensive or luxurious products like automobiles.