Business Plan Tips : Blue Ocean Business Strategy

Poziom:

Temat: Biznes

The most recent entrant into the arena of business strategy planning approaches is a

concept called blue ocean strategy, which is interesting. The idea is old, but actually

the concept and development of it as an approach is much more recent, in the last several years.

Essentially, it has to do with beating competition in a new way. The contrast is red ocean and

blue ocean. Red ocean describes more traditional kinds of markets where competitors are used

to competing head-to-head with each other, and customers have gotten used to their products,

and there's very little opportunity to differentiate. Airline industries are a great example of

that, where the airlines compete tooth-and-nail for customers with smaller and smaller differences

in terms of the offerings that they make. The idea of a blue ocean strategy is to create

a whole new market space by changing the rules of the game that favor you and hopefully make

your competitor irrelevant. Southwest Airlines is probably the best example of a blue ocean

strategy in the mature airlines industry. They were able to come in and change the rules

of the game in their favor by eliminating a lot of very costly issues, which customers

liked but they weren't willing to pay for, and actually emphasizing the kinds of things

that customers wanted, which was fundamental travel, getting from here to there in the

most expedient way.

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