Blue Ocean Strategy

Type of record:
  • Strategy method
  • Macro method
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Ideal innovation phases for this method:
  1. Innovation Phase
  2. 1
  3. 2
  4. 3
  5. 4
  6. 5
  7. 6
  8. 7
  9. 8
  10. 9
  11. 10

Description

The Blue Ocean Strategy is a macro method for the strategic development of new profitable business models, without competitive pressure, from the area of strategic innovation management.

The basic idea behind the methodology is that lasting success can only be achieved through the development of innovative new markets that offer really differentiating and relevant benefits to the broad mass of customers and non-customers (so-called blue oceans), among other things through the meaningless competitors, new acquisition of customers and optimised cost structures.

First, a benefit curve is drawn up for a market or industry sector in order to clarify which core elements characterise them from the point of view of customers and non-customers. The benefit curve of a company is visualized with the benefit curve of the current and potential competition.

By changing the core elements, which were previously defined, benefit curves can be permanently changed.

There are four measures to redefine core elements:

- Elimination: Which factors should be omitted?
- Reduction: What can be radically reduced?
- Increase: Which elements of the product need to be raised above the industry standard?
- Creation: Which components of a product need to be reinvented?

By modifying the core elements of a value curve, new business models are developed.
  • Effective for disruptive innovations
  • Effective for new business models
  • Effective for product innovations
  • Effective for technology innovations
  • P1 Understanding (identify innovation fields - problem solving)
  • P2 Analysis (problems - challenges - environment - people - products)
  • P3 Observe (people - environment - product use)
  • P4 Synthesize (create leading questions - take a stand)
  • P5 Idea Finding (ideation - idea generation - creative phase - incubation)
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