Blue Ocean strategy

🌱September 15, 2021.
Last tended September 16, 2021.
budding 🌿
1 minute read ⏱

This note provides an overview of my learnings from the Quantic MBA course on blue ocean strategy. Follow the linked notes for more depth on any topics that are of interest.

Types of markets

Red oceans are packed full of both customers and competitors fighting over them. These are the markets that are already well established.

Blue oceans are wide open and full of opportunity. These markets may not have been created yet, or are in their infancy with a small number of competitors and customers.

Tools and techniques

Value innovation is when a company finds a way to simultaneously provide more value and reduce costs. This is key to moving from a Red ocean to a blue ocean.

A Strategy canvas is a tool that can help find opportunities for value innovation. It shows Factors of competition for an industry and the emphasis companies place on those factors. The plot for each company is its value curve.

The Four Actions framework facilitates the development of a business strategy to create a blue ocean using value innovation.

There are some common traits of successful blue ocean strategies which are easily identified once the value curve for a variety of competitors in an industry have been plotted on a Strategy canvas.