When Henry Ford made cheap, reliable cars people said, ‘Nah, what’s wrong with a horse?’ That was a huge bet he made, and it worked.
The whole idea of The Blue Ocean Strategy is to create uncontested market spaces that creates new demands and make the competition irrelevant.
The book describes Red Oceans as known market places that have bloody competition among businesses trying to win customers. Here there is a fixed existing demand of which every company wants a share.
The Blue Ocean on the other hand is an uncontested market place that creates demand for itself, which is not known to others. This makes competition irrelevant. Focus is on creating, not competing.
Value Innovation :
Value innovation occurs when company align innovation with utility, price and cost positions. Instead of using competition as the benchmark companies focus on taking leaps ion value for customers.
Idea behind value innovation if…
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