Use the Blue Ocean Strategy to Develop a Market

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Blue Ocean Strategy is a fantastic read for those focused on market development. The frameworks, ideas, and concepts apply cross-industry in both the public and the private sector. It provides a framework for how to think about solving problems and finding ways to create value for your customers.

Creating your own Blue Ocean Strategy

I found the example of Cirque Du Soleil’s approach to innovating in the declining industry of circuses especially helpful. They combined the best of live theater with the circus experience. Then retargeted it to adults to create a unique experience. There are many other examples of companies that have disrupted their own industry through a blue ocean strategy.

Female Circus Fire Eater

The idea behind a blue ocean is that you find areas where you can create a new market space. Where you compete as the sole provider. You create a blue ocean that provides value in a new way to customers. Then the company benefits from being the only one who meets this new demand.

The book describes how you go about creating and identifying a blue ocean. Start by understanding what the key factors and assumptions currently are in an industry. Then you systematically decide which assumptions should be gotten rid of and lowered. In Cirque Du Soleil’s case eliminating animals and multiple rings (stages). Combined with lowering the cost of refreshments and the importance of star circus performers.

The next step in the blue ocean strategy is to determine which factors are not weighted high enough. Developing themes for each show and increase the cost of the ticket. The last is determining what is not a key factor currently but should be. For example adding unique venues, music, and retargeting to adult experiences.

Blue Ocean Strategy and market development

Blue Ocean Innovation

Overall the blue ocean strategy is a guide to systematic innovation and assessment of the current industry. You can use the blue ocean framework to drive new lines of thinking where there is a struggle. Ultimately you can use it as a guide to determine if new ideas are truly innovative.

If you are an entrepreneur looking to develop a new product this is a great read. You will gain additional tools to utilize in your toolbox and find your blue ocean of growth opportunity.

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