Create a Blue Ocean
How Do You Create a Blue Ocean?
Blue Oceans sound like the place to be, right? But if it was so easy to find, wouldn’t everyone flock to the Blue Oceans of their industries so they are the uncontested business in that marketplace? It’s not about finding a Blue Ocean, it’s about creating one.
Here’s how you create a Blue Ocean:
1. Define the current reality. What are the key attributes of a product or service in your industry?
2. Identify a segment of customers who are only interested in or find value in a portion of the features of a product or service. This is your new target audience.
3. Alter the product or service to be inferior on the aspects that are less valued by your new target audience. While this might at first appear like a bad business move, it’s actually quite essential to create value and lower costs.
4. With the savings realized on Step 3, there’s an opportunity to enhance a product or service based on what your new target audience values or with new features that are targeted specifically to this audience.
Red Ocean vs. Blue Ocean Strategy: Characteristics, Challenges, and Opportunities. (n.d.). https://www.eleken.co/blog-posts/red-ocean-vs-blue-ocean-strategy-characteristics-challenges-and-opportunities.