Blue Ocean Strategy is a committed effort to create new market space through value innovation: pursue differentiation and low cost together by changing what buyers receive and which activities the company performs. The tag records an implemented strategy aimed at noncustomers or new uses. Adoption and commercial success are assessed separately.
How Blue Ocean Strategy works
Eliminate or reduce costly factors that buyers do not need, and raise or create benefits that make a new offering worth buying. The resulting proposition can bring noncustomers into a new market. Its defensibility must be assessed separately.
How companies won with Blue Ocean Strategy
From the win chains in Strategy Canon case studies: what the winner did, and what its rival did at the same step.
vs. HomeAway · 2007-11
Airbnb
Open people's own homes and spare rooms as lodging
What it did
Air mattresses for a sold-out 2007 conference
HomeAway
Whole vacation homes, condos and cabins listed by owners on a $349 yearly subscription, aimed at homes renting 12+ weeks (2012-13)
Which noncustomers or new uses did the company target, what value and cost factors did it change, and how was the implemented offer intended to create demand beyond taking share?
Who names it
Author
What they call it / where it appears
Kim & Mauborgne +
Blue Ocean Strategy; value innovation; strategy canvas; eliminate-reduce-raise-create
Note. Name the targeted market space, prior alternatives or nonconsumption, value and cost changes, and implemented commitment. A slogan, category name, cheaper version of the same offer or unimplemented plan is insufficient. A failed attempt can qualify. Keep observed demand and company outcomes separate from the tag.