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 achieve the want and need for your product or service. This strategy will help you look beyond your competition and create a whole new market and standards for your own business.

The purpose of this strategy is to create a new standard in the market where only its products and services can live up to it. In this way, you automatically create a new market and stand out from 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 as well. This strategy actually involves designing your offer so differently 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 slogan ‘Market Driven Change’. Several product developers and designers have gathered 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.

Because of this and several other developments in the strategy, Samsung’s market share grew to 26.4%, with Sony taking 24.6%, followed by Sharp with 8.2%. And keep in mind that Samsung started in 2006 with a market share of just 12.1%.

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

Pros:

Superior Strategy for Small and Medium Businesses. These are often more flexible and can move more quickly towards the needs and wants of their customers and the market. Because they are relatively small, they are closer to their customers, so more information can be obtained from them.

Smaller businesses can get a lot of publicity quickly by using this strategy. Even faster than the big companies. Because small businesses typically operate on a local or regional level, they can get their message across more quickly and get more free publicity.

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

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 helpful, but many small and medium-sized businesses don’t have one.

After a while the first imitators will emerge, competing with the same value points as you. This is completely normal, however, it forces the entrepreneur to find a new strategy every few 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 before the process has even started, smaller competitors may have already snatched up 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 applying a Blue Ocean strategy.

‘How to apply’ checklist:

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

2) Investigate which points competitors use in their marketing and which ones they don’t.

3) Try to find the ideal solution for the client outside the borders, criteria and standards of their market or industry. Forget about standards and ‘unspoken rules’ and just think about the best possible solution for your customers, 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 simple way possible. Don’t let the customer walk away with any problems, questions, or choices, but make the entire process as easy as possible.

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

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