The key element of blue ocean strategy is value innovation, a combination of differentiation and low cost that sets a product line or service apart from its competitors, consequently, the growth strategy refers to a strategic plan formulated and implemented for expanding organizations business.
Blue ocean strategy seeks to turn strategic management on its head by replacing competitive advantage with value innovation as the primary goal where firms must create consumer demand and exploit untapped markets, the best way to defend blue oceans and to block new entrants into the market you have created, as long as possible, is to heighten these barriers with a constant improvement of your initial blue ocean strategy of value, profit and people, generally, most business organizations are conversant with the red ocean strategy and are used to rivalry and competition while hoping to achieve the highest level of success.
Rather than finding white space in an existing market, the blue ocean strategy helps businesses redefine themselves to carve out an entirely new market by infusing ideas from other industries and markets, the blue ocean strategy took the world by storm and still holds value today.
Once your organization has developed a blue ocean strategy with a profitable business model, the next challenge is strategy execution, no matter where you are in the world, the ability to lead innovation and strategy in your own life and in the life of your business or organisation is paramount to the success of your leadership journey, further, those who want to create a blue ocean strategy for their company must focus on value innovation that makes the competition irrelevant by the simultaneous pursuit of differentiation and low cost, thus creating a leap in value for the customers and an uncontested market space for the company.
Blue ocean strategy provides a robust mechanism to mitigate risks and increase the odds of success, red oceans are over-saturated and one of the solutions for companies is to go out of such oceans by accepting the blue ocean strategy challenge, in addition to your business strategy, or competitive strategy, usually developed in the level of division and the emphasis on the improvement of the position of competing products or services companies in specific industries or market segments served by the division.
Your strategy tells you where you want to go, and the business model tells you how you are going to do that, instead of fighting for space in an ocean full of many players, shift your business or activities to a place where you would be the market leader being more concerned with barriers to the successful implementation of the blue ocean strategy than with the prominent role that barriers play in preferred strategy.
Organizations like yours may benefit from all of the great strategic tools that exist that you can bring into your business to help meet your organizational goals, as well, therefore, the blue ocean strategy provides companies with guidelines on how to escape from intense competition over the same market space where there are limited customers with an increasing number of competitors by creating new market.
Little is known, however, about business model innovation challenges that need to be addressed and how managers can structure the task of developing novel and commercially viable business models, in the end, to develop a robust business strategy, organizations all must perform business strategy development beginning with a clear set of beliefs around its business positioning and its existing strategic challenges.