By Nicole Wise on Nov 30, 2012 12:32:00 PM
Marketing Hints and Tips
Entry 25: Blue Ocean Strategy Makes Competition Irrelevant
If you are a vendor with Holganix, you’ve probably seen the book Blue Ocean Strategy by W. Chan Kim and Renee Mauborgne floating around. It’s become a tradition at Holganix to hand out the book to our vendors and members of our team. Why are we crazy about Blue Ocean Strategy? It’s simple: Blue Ocean Strategy makes competition irrelevant. Here’s how it works:
Authors Kim and Mauborgne have identified two markets: blue and red oceans. Red oceans are markets crowded with competitors, where you have to battle through the mob to win a piece of the pie. It’s exhausting and competitions sometimes end in bankruptcy. On the other hand, blue oceans are “uncontested market space.” They are so empty of competitors you can hear the tumbleweeds blow by. The best part is that you can create your own blue ocean! Here are two companies that take advantage of the blue ocean strategy:
1. Cirque du Soleil
Cirque du Soleil is an example of a company that successfully entered a blue ocean. Instead of catering to children as circuses traditionally have done, Cirque du Soleil targeted middle- and upper-class adults, giving them an artistic, almost otherworldly experience.
2. Yellow Tail Wine
Traditional wineries valued characteristics including age, legacy and complexity of their wines. This was a good approach for wine enthusiasts, but it outcasts the everyday individual that did not possess wine knowledge. Yellow Tail took a different approach and made the wine experience much less intimidating. They eliminated the fancy lingo and created a fun and adventurous wine that was easy to drink and select.
Ask yourself: How can you transform your company and make the competition irrelevant? How can you create a blue ocean? For more information on blue oceans and a strategic process to incorporate blue ocean strategy into your business, crack open your copy of the book or order one here.