Blue Ocean Strategy
In case of
revolutionary value innovation (radical
innovation), the strategic aim is to create new best-practice rules by
breaking the existing value-cost trade-off and thereby creating blue ocean.
To define a blue ocean strategy, you should
look across alternative industries, look across strategic group within
industry, redefine the industry buyer group, look across to complementary
product and service offerings, and participate in shaping external trends
over time. You need to
stand
apart in the marketplace. So, your strategy must deviate from
me-too-ism, and your value curve must diverge from industry standards.
Outstanding Value
Innovation
Blue Ocean Strategy is about
revolutionary value
innovation. It helps you
create customers and
stand out from the competition.
Value
innovation< is created in the region where a company’s actions favorably
affect both its cost structure and its
value proposition to buyers.
Cost savings are made by eliminating and reducing the factors an industry
competes on.
Buyer value is lifted by raising and creating elements the industry has
never offered.
