Blue Ocean Strategy

Blue Ocean Strategy is a method for developing lasting profitable business models from the field of strategic management. Basic idea of ​​the methodology is that (so-called Blue Oceans ), lasting success can only be achieved through the development of innovative new markets that offer the broad masses of customers and non-customers truly differentiating and relevant benefits, including through the meaningless become competitive, Neuakquirierung of customers and optimized cost structures.

Origin

The concept of Blue Ocean Strategy was developed by W. Chan Kim and Renée Mauborgne at INSEAD Business School, and there initially called Value Innovation. Based on empirical studies over a period of 15 years could be found from the analysis of more than 100 leading examples of companies seeking new, hitherto unused portion of opened up markets and thus the previous competition could be irrelevant.

Concept

The term describes ocean in connection with the Blue Ocean Strategy a market or industry. "Blue Oceans" ( Blue Oceans ) be understood as untouched markets or industries that have little to no competition. The one who would dive into the blue ocean, thus undiscovered markets or industries would find. " Red Oceans" ( Red Oceans ), however, refer to saturated markets, characterized by tough competition, crowded with competitors, which offer all the same services or the same products.

The term " Red Ocean " is based on the image of the bloody battles of predatory fish ( the competition ), while the "Blue Ocean " is free of bloody fighting.

Behind the concept of Blue Ocean Strategy is the idea that successful companies not based in the contest, but find their own innovative ways to create a blue ocean itself. Innovations open new markets and increase their attractiveness by the absence of some less attractive market characteristics that are less valued in the previous competition. Successful innovations often rely on this technological innovation, but rather on a novel design of the overall offering. Below is often a redefinition of the market or the consumer to understand ( see examples).

Blue Ocean methodology

Value curves

First, a value curve is created to clarify the core elements from the customers and non-customers view characterize this for a market or industry. Important characteristics can for example be significant and highly competitive core attributes or investment drivers of competitors. The value curve of an enterprise is visualized with the curve values ​​of the current and potential competition.

Values ​​curves within a strategic group (eg premium vs. Discounters ) are mostly interchangeable, and depict an industry standard.

By the change in the core elements which have been previously defined curve values ​​can be changed continuously. There are four measures in order to redefine core elements:

The amendment of the core elements of a value curve, new business models can be developed.

Implementation

In implementing two aspects to consider:

Examples

Southwest Airlines

The oldest example is probably the story of the low-cost carrier ( LCAs ) Southwest Airlines who considered alternative industries and created a new benefit to potential customers. Southwest Airlines positioned itself as a competitor to the car, not to other airlines and adapted its strategy to the resulting needs to:

  • Reduced prices due to the elimination of additional services
  • Improved check- in times and departure frequency
  • Allows the customer a high cruising speed (airplane) at a low price ( compared to car)

Here, then, a redefinition of the offer has taken place. Customer is the ordinary traveler, not just the business or leisure traveler.

The Body Shop

Another prominent example is the concept of The Body Shop, which donated a new functional and emotional benefits in the cosmetics industry. The most glamorous appearance of cosmetics groups was left at the Body Shop concept in mind. The Body Shop stabbed by a functional appearance, reduced prices and unpretentious packaging produced. It was placed a greater emphasis on natural ingredients, healthy lifestyle, and ethical concerns. This reached The Body Shop a new customer base and was able to achieve very high cost savings (about 85 % of the cost on packaging and advertising).

Nintendo

A more recent example of Blue Ocean Strategy is the success of the Nintendo Wii game console, which has been developed for a new audience for video games. Nintendo gives way to competition for graphics and computing performance of other consoles such as Microsoft's Xbox or Sony Playstation with a control concept with motion sensors.

Nespresso

Another example is the introduction of the coffee system Nespresso by the food company Nestlé.

Cirque du Soleil

Cirque du Soleil has created a new market in a circus competition. The most obvious feature is that unlike in conventional circuses animals are not shown. Instead, here are the artists and the combination of entertainment elements, such as opera, ballet and rock music in the foreground. The music is played here exclusively live. The target group is no longer primarily families with children, but adults who are willing to pay for quality entertainment a correspondingly higher price of admission.

Service (economics) Tipping point (sociology)
6903
de