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Blue Ocean Strategy

Create a market space with no effective competition: Competitive strategy asks firms to analyze existing industry conditions and best position themselves against the competition by pursuing either differentiation or cost leadership. Here strategy is seen as making a trade-off between value and cost. Whereas this approach provides firms with the methods and tools for competing in existing market space, it leaves unaddressed the critical challenge of how to redefine industry boundaries and create new market space which becomes increasingly imperative given the business realities today.

What does it take for a company to stand apart and create strong profitable growth?

Is there a systematic approach to breaking out of the bloody competition and achieving high performance?

Blue ocean strategy fills this important void in the strategy field by offering a systematic approach to reconstructing industry boundaries and creating uncontested market space. By guiding companies to pursue both differentiation and low cost, Blue Ocean strategy seeks to break the value-cost trade-off, thereby helping companies create new demand and achieve strong profitable growth.

Competitive strategy asks firms to analyze existing industry conditions and best position themselves against the competition by pursuing either differentiation or cost leadership. Here strategy is seen as making a trade-off between value and cost. Whereas this approach provides firms with the methods and tools for competing in existing market space, it leaves unaddressed the critical challenge of how to redefine industry boundaries and create new market space which becomes increasingly imperative given the business realities today.

What does it take for a company to stand apart and create strong profitable growth?

Is there a systematic approach to breaking out of the bloody competition and achieving high performance?

Blue ocean strategy fills this important void in the strategy field by offering a systematic approach to reconstructing industry boundaries and creating uncontested market space. By guiding companies to pursue both differentiation and low cost, Blue Ocean strategy seeks to break the value-cost trade-off, thereby helping companies create new demand and achieve strong
profitable growth.

Its principal objective is to make it possible to reconfigure and implement a new business model in order:

  • To leave a highly-contested market  (“Red Ocean”) with blood in the water; and
  • Create new market space without effective competition (“Blue Ocean”).
Red Ocean Strategy Blue Ocean Strategy
Compete in existing market space. Create uncontested market space.
Beat the competition. Make the competition irrelevant.
Exploit existing demand. Create and capture new demand.
Make the value-cost trade-off. Break the value-cost trade-off.
Align the whole system of a firm’s activities with its strategic choice of differentiation or low cost. Align the whole system of a firm’s activities in pursuit of differentiation and low cost.

© Kim & Mauborgne

Blue Strategy Africa introduce clients to the key concepts, frameworks and tools of blue ocean strategy through laying out the fundamental methodology for creating and capturing blue oceans of new market space.

The Blue Ocean approach makes use of a process called “value innovation”. Value innovation is not simple, but there is an excellent systematic approach and there are tools to help you:

  • Modify your product/service offering;
  • Change the market borders of your business model; and
  • Implement your strategy with execution methods to incorporate into it.
© Kim & Mauborgne

Through value innovation, we assist our clients to align corporate strategy with market realities. This enable them to find uncontested market space where competition is irrelevant leading them to realize new profitability and revenue growth.