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Think differently and further than ever before
for more profitable growth.

Blue Ocean Strategy -

MSU Consulting

Think differently- Exploit growth opportunities

Create new markets with Blue Ocean Strategy

The real opportunity for more profitable growth is finding unoccupied markets with Blue Ocean Strategy - blue oceans that are free of competition.

What do I care about the competition?

Those who only operate in fiercely contested markets must reckon shrinking profits and sales on long term. Therefore it is worthwhile for companies to change their perspective and to ‘care less about competition’. It should be tried to create demand where it does not exist yet.

From Red Ocean to Blue Ocean

‘Forget about the competition’, demands Blue Ocean Strategy, which has already found its way into many companies from various industries. The basic principle of the method is very simple. The business world can be divided into two worlds: Blue and Red Oceans.

  • • Red Oceans stand for well-known markets. Here one strives for the largest possible market share. However, since the competition doesn’t sleep and more and more providers are actively involved in these markets, fierce market share battles are inevitable. The market turns - figuratively speaking- blood red into a Red Ocean. The fight for sales and margins determines the day-to-day business.
  • • Blue Oceans on the other hand are new markets, either because new industries have been created or existing ones have changed significantly. They have enormous growth potential, because they are - at least temporarily - unrivalled.

Successful companies that create new markets have one thing in common: they are not oriented towards competition and known customer needs, but they sense the needs of non-customers and provide corresponding offers.

The Blue Ocean Strategy goes along with the following basic principles

Think differently than before: Red Ocean Strategy Vs. Blue Ocean Strategy

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In many industries, new, profitable growth opportunities are only possible through a strategic change of perspective. In order to achieve this, one must consciously break traditional rules. The rules of the Red Ocean Strategy, which is pursued by many companies, and the Blue Ocean Strategy differ significantly from each other.

Turn non-customers into customers: Create new markets with non-customers

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Companies that make the majority of their non-customers the starting point of their offers open up significant market opportunities. This simple logic determines the core of the Blue Ocean Strategiy. Basically, three non-customer categories are distinguishable.

Concentrating on discovering the needs of non-customers and designing new offers for them will help create new demand markets. The further away one moves from the traditional target groups, the greater the opportunities.

View beyond the horizon: Six paths for innovation

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Many methods of strategy and innovation development are too limited to the current, known boundaries within the existing industry. One example of this is benchmarking, in which one specifically measures oneself with the competitors. This may certainly be a suitable approach for certain operational issues, but a constant look at the offers of the competition often results in products and services becoming more and more alike

In the development of Blue Oceans on the other hand, the identification of future relevant beneficial offers is the deciding factor. It is therefore very promising to look beyond the horizon of one's own industry. In order to overcome thinking barriers, six directions of viewing or rather searching are relevant.

Breaking out of industry standards: high benefits at low cost

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The Blue Ocean Strategy Strategy is also doing away with a traditional dogma of corporate governance: The supposed conflict of targets between customer benefit and costs. Traditionally, it is assumed that a higher customer benefit can only be achieved and implemented through higher costs and vice versa. Hence, as a company, one has to decide between a quality strategy and cost leadership. Without a clear direction, one might be caught between two stools and will be crushed by companies that offer better deals or prices. Companies that operate with the Blue Ocean Strategy strive for new benefits as well as lower costs. Therefore, four basic questions need to be answered in order to develop novel offers (see graph).strive for new benefits as well as lower costs. Therefore, four basic questions need to be answered in order to develop novel offers (see graph).