Blue Ocean Strategy
Blue Ocean Strategy is a term coined by W. Chan Kim and Renée Mauborgne in their book, "Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant." The concept is based on the idea of creating a new market space where competition is irrelevant, rather than competing in an existing market space with established players.
The Blue Ocean Strategy approach involves identifying untapped market opportunities that can be created by offering unique value propositions to customers. This requires a deep understanding of customer needs and preferences, as well as the ability to innovate and create new products or services that meet those needs.
The key to success with Blue Ocean Strategy is to focus on differentiation rather than price competition. By creating a unique value proposition, companies can attract new customers and build a loyal following, without having to engage in price wars with competitors.
To implement Blue Ocean Strategy, companies must go through a four-step process: (1) eliminate, (2) reduce, (3) raise, and (4) create. This involves eliminating factors that are taken for granted in the industry, reducing aspects that are overemphasized, raising aspects that are underemphasized, and creating new features or benefits that are not currently offered.
Overall, Blue Ocean Strategy is a powerful tool for Product Managers looking to create innovative products and services that stand out in the marketplace. By focusing on differentiation and creating new market spaces, companies can achieve long-term success and profitability.