Blue Ocean Strategy: Definition, How to Develop, Example, Advantages and Defenses

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Blue Ocean Strategy Definition How to Develop Example Advantages and Defenses

Blue Ocean Strategy: Definition, How to Develop, Example, Advantages and Defenses

Have you heard Blue Ocean Strategy? Almost all of us have been to the beach for a weekend getaway or a long vacation! If it’s not a holiday, we must have seen visual oceans and oceans on social media and television.

Isn’t we? The sea is very broad, in and is the most confusing natural miracle in the world. Exploration and appropriate research can provide way for extraordinary discoveries and give us information about their coverage and unexplored prospects.

In the same way, road solving strategies, known as Blue Ocean Strategy, was introduced by W. Chan Kim and Renée Mauborgne. This is a pacifist marketing scheme and is considered a strategic planning tool to assess business.

The blue ocean analogy is used to open a broader, unexpected, strong, and wide potential in the market space that has not been explored in terms of profitable growth. This strategic planning theory is an escape from the general understanding of the benchmarking competition and focus on the lump sum figure.

What is Blue Ocean Strategy?

Blue Ocean Strategy is about designing and obtaining potential market targets by bringing up new requests.

Because the industry has not been before, there is absolutely no similar comparison relevance. This strategy meets new demand by getting used to unique products with sophisticated features that are different from the others.

In other words, the strategy spurred the company to offer products that are very valuable to consumers and support companies to generate large profits and outperform competition.

Product price labels are generally maintained on a more conservative side because of their monopoly. The Blue Ocean approach avoids ideology to outperform competition and confirm to recreate market boundaries and operate in a newborn room.

The type of leadership and management needed to start the Blue Ocean Strategy is different from the company’s management that has short-term ambitions and primarily concentrates on increasing the value of shareholders by increasing stock prices through repurchases, mergers and acquisitions. Blue Ocean Strategy can be applied to all sectors or, business and not only in just one type.

The opposite of the concept of Blue Ocean Industries, there is a Red Ocean Industries. Let’s understand the concept briefly before turning to further analysis.

Red Ocean Industries

Red Ocean is an industry that is currently there or, which we call the contested market target.

At Red Ocean, there are clearly known and open industrial limits for all. Due to the introduction of competitive rules and recruitment of limits drawn, market space became crowded and consequently there was a decrease in growth and profitability.

When the product is under the load pressure load, it is always possible that the company’s operation is under a real threat.

The company under the Red Ocean tries to outperform its competitors by achieving a higher proportion of the existing market share when other companies suffer losses.

To keep themselves staying at the market, supporters of the Red Sea strategy concentrate on creating competitive advantages by checking their colleague’s blueprints / competitors.

Such saturated market space paves the way for unhealthy competition which ends up as a ocean full of rivals that compete for a collection of more depleted profits. Such companies are mainly trying to capture and distribute wealth instead of creating wealth.

This kind of market target can be correlated with marine waters filled with bloodshed sharks. Therefore, this term is called the Red Ocean Industry and many business worlds have escaped also trying to pass “the sea of ​​red” to create their own “blue sea”.

How do I develop or make Blue Ocean Strategy?

Blue Ocean Strategy is a necessity when the offer exceeds demand on the market. When there is a limited scope for further growth, businesses try and look for vertical ways to find a new business line where they can enjoy the benefits of an undisputed market share or ‘Blue Ocean’.

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To find and identify interesting Blue Ocean, we need to consider the “four action framework” to design aspects of the buyer’s value in making a new value curve. The four framework of action imitates the strategic success and guidance towards the launch lane of the Blue Ocean initiative.

The framework proposes four key questions, namely:

1. Develop

It includes points that must be developed by the industry by referring to product lines, price labels, and service quality. A startup must analyze the pros and cons of existing organizations and their strategies for the main aspects of differentiation.


2. Reduce

This shows the arena of organizational products or services that describe important characters in the industry but are not absolutely essential. Therefore, the proportion of products can be reduced without completely removing it.

3. Get rid of it

This shows the arena of organizations or industries that can be removed absolutely for the purpose of cutting costs and also to make a truly new market.

Sometimes, new products can cause their own murder of existing products and thus cause reluctance to disrupt the source of income that is actually obsolete.

4. Create.

This encourages companies to form outstanding products. The introduction of a completely new product line or, service leads to the establishment of new markets and differentiation points.

The identification of target market needs provides good knowledge about the addition of unique steps and consequently tracking progress to describe Blue Ocean.

Now we have discussed the blue ocean strategy and how to find it, let’s also discuss business examples successfully in using this strategy.

Examples of industries that have successfully implemented the Blue Ocean Strategy

Let’s learn how the organization that has taken the Blue Ocean Strategy path has experienced extraordinary growth and profitability!


Uber is the idea of ​​the Blue Ocean Strategy and has dramatically changed the image of the transportation industry by eliminating taxi booking disorders, service rejection, argo problems and other unwanted things.

This is a sharing service that allows customers to order their rides with easy access via smartphones. It also allows users to track the driver to real-time pickup points through the smartphone application media called the Uber application.

Uber created a new market by combining advanced technology and modern devices. They tried to distinguish themselves from ordinary taxi companies and in turn developing a low-cost business model that offered flexible payments, pricing strategies, and generating good income for drivers and companies.

At the initial stage, Uber won the market space that had not been filled, but eventually flooded by competitors. Apart from that, he continued to dominate the market and quickly developed throughout the world. In 2019, Uber had around 110 million riders worldwide and held 48% market share throughout the world.


Apple headed to the digital music room with its unique and leading products namely iTunes in 2003. In previous days, conventional media such as Compact Disc (CD) was used to spread and listen to music.

When iTunes goes into the market, it solves the basic problems faced by the recording industry. As a result, iTunes stopped the practice of downloading music illegally as well as meeting the demand for one song versus the entire album in the digital version.

High quality music at affordable prices offered by Apple became talks throughout the world. All available Apple products have iTunes to download music and most have mastered market space for decades. It was also recognized to encourage digital music growth.

Examples of this Blue Ocean Strategy can enlighten future pilot companies related to the implementation of strategic planning schemes and successfully open new requests.

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The advantages of Blue Ocean Strategy

Here are some advantages of using Blue Ocean Sttategy:

  • Blue Ocean Strategy works with organizations to find markets that are not unrivaled and avoid competitive and saturated markets.
  • It helps to move from competitive barriers in the industry and existing cost structure and gradually migrate towards an increase in constructive value. In short, this shows how to break away from traditional strategic models and to expand industrial profitability and demand by using analysis.
  • Value innovation is the Blue Ocean Strategy backbone. Value innovation is an alliance of innovation with prices, utilities, and cost positions. This ultimately creates new values ​​/ demand for consumers and thus, expands opportunities for growth potential.
  • Blue Ocean Strategy allows fundamental transformation in mindset. It develops mental and helpful horizons in recognizing opportunities.
  • Blue Ocean Strategy is based on data that is proven to be “many times” than the theory that is not proven. This is based on a practical approach that has proven results during direct market execution.
  • Products with the concept of the Blue Ocean Strategy do not make consumers choose between values ​​and affordability. This is the purpose of differentiation and low cost theorem simultaneously.

Lack of Blue Ocean Strategy

Let’s also see some common shortcomings of this strategy use:

  • It is quite difficult to find futuristic ideas and identify the colossal market and that have not been touched.
  • Nominating the BLUE OCEAN The articulated strategy is the result of a calculated and detailed research process supported by extensive analysis. It must be remembered that there is no magical formula or silver bullet which means your business will work later.
  • Explore the market in the initial phase is accompanied by a risk burden. It is likely that customers may not understand grass root products and services because of the absence of technology developed fully.
  • New market production is never easy because organizations must be smart and clear about the customer base and how to provide education about new ideas, new products, and new solutions. It also requires clarity about trade-offs, obstacles and labor.
  • Choosing a different ocean, Blue Ocean requires a lot of patience, perseverance, trust, preparation, and confidence. It is also very important to see the initial indicator to confirm the fact that “fishing” is not done at the Dead Sea.
  • When finding a new ocean, another shark from the saturated market, aka the Red Sea and another adjacent ocean will be captivated to the new market. Thus, building strategic defense alternatives will be a wise step. The defensive alternative consists mostly of brand strength, technological advances, and the speed of execution.


Creating a new market and supporting the development of Blue Ocean Strategy is indeed not an easy matter. It takes hard work, sharp data and maybe a fairly large capital. But this will be comparable if this strategy is successful, because there will be a potential that your services or products or business create new needs that have a high profit value.

One of the important things that need to be considered in building a Blue Ocean Strategy is data, for example, financial data in the business. In order for your business to grow and increase the number of customers you don’t forget to advertise through the Froggy Ads service, you can start by advertising your product, so that later you can increase visitors on your online business portal. FROGGY ADS is an online advertising service that can help you control all your product campaigns. Helps you target the targeting target you want and give you many choices to market your product.