Blue Ocean strategy creates demand

• In blue oceans, demand is created rather than fought over. There is ample opportunity for growth that is both profitable and rapid.

• In red oceans (in all the industries already existing) companies compete by grabbing for a greater share of limited demand. As the market space gets more crowded, prospects for profits and growth decline. Products turn into commodities, and increasing competition turns the water bloody.

There are two ways to create blue oceans.

1. One is to launch completely new industries, as eBay did with online auctions.
2. But it’s much more common for a blue ocean to be created from within a red ocean when a company expands the boundaries of an existing industry.

Blue Ocean Strategy is a marketing theory from a book published in 2004 which was written by W. Chan Kim and Renée Mauborgne

#organizations #strategic

See also:

• The kernel of a good strategy includes three things
• Strategic forecasting guides decision-making and catalyzes innovation