Why Blue Ocean Strategy Is EVERYTHING You Need to Innovate – Startup UNI

What is common to Google, Apple, Facebook, Ikea and Oyo?

Yes, I know what you are going to say: they are innovative companies in each of their industries

What if I told you that ALL these companies have a STRATEGY in common

You are probably already guessing: it is the BLUE OCEAN STRATEGY. Learn what it is about here!

Blue Ocean vs. Red Ocean

Let's begin. What ideas do you associate with the concept red ocean?

• Danger
• Blood
• Competition

And what about blue ocean?

• Peace
• Safety
• Abundance

You are probably already starting to get an idea of what this is all about…

Look, blue ocean strategy aims for companies to operate in markets that are blue oceans, meaning markets where there is no competition or where, in practical terms, competition does not exist.

I know what you are wondering: how do I avoid having competitors?

The answer is simple: by creating a market in which you are the only one

In other words: gaining new customers

I know it may sound very “straightforward”, but business strategies are like that; it is not like designing a facial recognition algorithm, which is highly complex by nature. Besides, straightforward does not mean simplistic.

After almost 10 years in business and studying innovation and entrepreneurship even at MIT, this is what has become clear to me. Once you understand how a business tool works, you realize it is simple to apply, and if you are getting too tangled up, it is because you have not understood it well.

How to Apply Blue Ocean Strategy

Returning to the point, as I mentioned, the goal is to create a new market, and this uses 4 principles

• Reduce
• Eliminate
• Raise
• Create

How do you use these? Here is an explanatory video on using blue ocean strategy in less than 10 minutes:

What Is Blue Ocean Strategy? – Full Class

If you want to hear a full explanation of this innovation strategy, I recommend watching this online workshop held at UNI's Technology-Based Business Incubator in Peru.

I assure you that this theoretical and practical explanation will be worthwhile:

Summary:

Blue ocean strategy aims to create a new market for companies by raising, creating, reducing and eliminating benefits in their products to meet new market demand.

Do not forget that you should avoid offering benefits at the same level of intensity as competitors: those are signs of a red ocean market.

Also, you do not always have to offer the best service level for every benefit. You can reduce the intensity or even eliminate some benefits to use those resources to create or strengthen other features or benefits of your product.

Final Thoughts

Why Is Understanding Blue Ocean Strategy EVERYTHING You Need to Know to INNOVATE?

Because innovating means creating something new and making that new offering reach everyone. And to do something new you must map what exists and propose something different. Not necessarily better in every respect, but different. Look at the Cirque du Soleil case if you want more examples. We will cover the development and construction of technical features—for technology ventures—in another article.

When Are We Applying This Strategy Incorrectly?

As I mentioned above, although this strategy is not difficult, many mistakes are made when applying it. I have a mind map to explain this:

Are There Strategies for Red Oceans?

This is a very interesting question, and the truth is that there are strategies for surviving in a red ocean market. During my time at MIT GCLOG 2018, my professor Chris Mejia taught a class where we were shown strategies for red oceans. The class was based on the book Islands of Profit in a Sea of Red Ink.

I will soon publish more examples of this methodology, as well as answers to the questions raised in the last section.

If you found this article interesting, please share it and give me feedback so I can keep improving! Thank you!

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