By creating a Blue Ocean, there aren’t only more fish, but you’re the only trawler around. If you get it right, the pay off for developing your own market is much more rewarding than trying to beat down others to get to the top in established markets.Ĭompeting in existing market space, with existing customers, only makes the water bloody, resulting in a horrible Red Ocean where there are more fisherman – but less fish each. The trawler has entered a Blue Ocean and in so doing made the other trawlers irrelevant as they’ve removed competition, and created itself a new market to thrive in. Now let’s think of two scenarios: a new trawler that has never sailed in any ocean decides to venture out on its own into unchartered territory instead of entering the Red Ocean, or a trawler decides to sail out of the Red Ocean that it is currently in, and into unchartered territory, which we’ll call the ‘Blue Ocean’, as there is lots of space and clear, blue ocean around.įor each of the above scenarios, the end result is the same. Inevitably this means a price war – and blood everywhere, hence ‘Red’ Ocean. Customer demand remains the same but the number of suppliers continues to increase, thus encouraging fierce competitive practices to ensure that they get as much of the market out at sea, and also when they get back to port. They’re all fighting after the same fish.Īs more trawlers enter the Red Ocean, the harder it gets for them to be commercially viable, since the ocean does not get any bigger and the potential catch is shared out more. They are sailing in a ‘Red Ocean’, contending against each other for a greater share of the ocean space and fishing catch. Setting out from port, there are many trawlers that are in competition with each other. Imagine a company as a fishing trawler at sea. Chan Kim and Renée Mauborgne called Blue Ocean Strategy, a metaphor for companies creating uncontested market space. What sparked my interest is a concept developed several years ago by W. When I see a company starting to do something that is innovative, I take notice and investigate, and try to leverage insights into my own client work. I’ve always had an interest in business strategy and business models, I like thinking about why some strategies work and why others don’t.
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