What does the blue ocean strategy entail?

The blue ocean strategy is focused on creating new market spaces, referred to as "blue oceans," where competition is minimal or non-existent. This approach encourages businesses to innovate and develop products or services that meet unaddressed customer needs, effectively creating a new demand rather than competing in an overcrowded market. By venturing into these unexplored areas, companies can differentiate themselves and avoid the fierce rivalry typically found in saturated markets, which often leads to reduced profitability.

This strategy advocates for innovation not just in terms of products, but also in how businesses think about their market positioning and target audiences, ultimately paving the way for sustainable growth and profitability. In contrast to creating offerings in saturated markets or merely enhancing existing services, the blue ocean strategy aims at breaking away from competition to foster unique value propositions. The focus is on creating new demand rather than fighting for a share of the existing market.