In modern society, competition is something we see every day and everywhere. Even when there is no direct competitor, you will have to “fight” to make a want and need for your product or service. This strategy will help you look beyond your competition and create a completely new market and standards for your own business.

The purpose of this strategy is to create a new standard in the market where only your products and services can measure up. In this way, you automatically create a new market and stand out above all your previous competitors. In short: from the red ocean (competition) you go to your own blue ocean where you are the king.

Many marketers call this era the ‘age of the consumer’, it’s all about the consumer. The Blue Ocean strategy too. This strategy actually involves crafting your offering in such a different way that a new market develops for you.

A small example of the power of the Blue Ocean strategy:

Samsung changed its strategy in 2006, led by the motto ‘Market Driven Change’. Several product developers and designers met in Seoul to work on a new flat-screen TV, codenamed “Bordeaux.” They worked there, under the supervision of the CEOs, until they met all the expectations, wants and needs of the consumer.

Due to this and several other developments in the strategy, Samsung’s market share grew to 26.4%, where Sony obtained 24.6%, followed by Sharp with 8.2%.

Here are the pros and cons of the Blue Ocean strategy.

Pros:

Superior strategy for small and medium-sized businesses. These tend to be more flexible and can move more quickly towards the needs and wants of your customers and the market. Because they are relatively small, they are closer to your customers, so you can get more information from them.

Smaller businesses can get a lot of publicity quickly using this strategy. Even faster than large companies. Because small businesses typically operate locally or regionally, they can get their message out faster and get more free publicity.

This strategy is perfect for companies that now know how to use their marketing and communication effectively. Much and preferably ‘close’ contact with customers and the market is needed to get the best results from this strategy.

Cons:

It is quite difficult to create a blue ocean without the necessary knowledge and experience in marketing and communication. A marketing budget is very useful, but many small and medium businesses do not have it.

After a while, the first copycats will appear, competing for the same value points as you. That is completely normal, however it forces the entrepreneur to look for a new strategy every several years.

For large companies it is more difficult to maneuver or change, to get a new strategy to work throughout the company as soon as possible. These companies have the resources and the budget, but even before the process has begun, smaller competitors may have already run away with the idea.

If you want to know more about the Blue Ocean strategy, you can find more information in the links and literature list below. First, some practical tips for creating and implementing a Blue Ocean strategy.

‘How to apply’ checklist:

1) Research what the customer really wants. Ask about the problems and challenges they face and what the solutions might be. Ask about the ideal situation the client wants to achieve.

2) Investigate which points competitors use in their marketing and which ones do not.

3) Try to find the ideal solution for the client outside the borders, criteria and standards of your market or industry. Forget about standards and ‘unspoken rules’, but just think about the best possible solution for your clients and how you can help them achieve it in an efficient and enjoyable way.

4) Create a marketing system that sells your product in the most pleasant and easy way possible. Don’t let the customer walk away with problems, questions, or options, but make the whole process as easy as possible.

5) Teach the potential customer and the market what you can do about the problem, that you go beyond any competitor and that you care more about customers.

6) Come up with the best possible guarantee, for example an unconditional 100% money back guarantee. This single point goes beyond many competitors in many cases.