Blue Ocean Strategy





A strategy used when competition for a product is low or nil in a market is called as Blue Ocean Strategy. It revolves around searching for a business that is operated by a few firms and one which does not have any pressure regarding pricing. 
Blue Ocean Strategy is not limited to any one type of business and can be applied to all businesses belonging to any sector by bringing in innovative products or services. In the present scenario where competition level is high and market is saturated, businesses are striving hard and doing everything to gain market share. In such a situation, the product or business comes under the pressure of pricing which always has a possibility of putting the firm’s operations under threat. 
Businesses that step out of this competition with an expectation to grow look for verticals or avenues that have less competition and where they can enjoy uncontested market share or otherwise known as Blue Ocean. The first-mover here enjoys all the advantages including cost, competition, ability to set prices without any competitive constraints and also the flexibility to take its functioning in any possible directions.

Blue Ocean strategy aims at capturing new demand and introducing new product with superior features to make competition irrelevant. Through this process, companies are able to reap huge profits from the high priced products because of its unique features. For example, Apple who got into the digital music field with iTunes in 2003 is a perfect example of Blue Ocean strategy. This allowed Apple user to download legal and high quality music at a reasonable rate. This gradually made traditional sources of music distribution like CDs irrelevant. 

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