The Blue Ocean methodology creates a strategy through the use of empirical data, systematic analysis and imagination.
It is based on the view that while markets are constantly changing and businesses have fluctuations in their performance over time, it is more efficient and sustainable to place the strategic move of the business at the centre of the analysis.
This move will help the business to detach itself from the static fighting of competition, the structures and the boundaries of the market branch.
Most of the time, and logically so, better products and services have a higher price and higher manufacturing costs.
There is an alternative approach, that of lateral thinking followed by the Blue Ocean Strategy called Value Innovation, which can combine two seemingly opposites elements: reducing costs while increasing value.
- Reducing production cost is achieved by eliminating or reducing features already offered by competition in a particular sector
- Customer value increases by offering new features and improving existing ones.