What is a characteristic of the blue ocean strategy?

The blue ocean strategy is characterized by the concept of creating entirely new market spaces where competition is minimal or non-existent. This approach focuses on innovation and value creation rather than engaging in fierce competition within saturated markets. By devising new products or services that open up unexplored markets, organizations can attract new customers and create demand.

This strategy encourages businesses to think creatively and identify opportunities where they can differentiate themselves significantly from competitors. For example, instead of competing in an existing, crowded market, a company might innovate to provide a unique solution or experience that fulfills an unmet need, effectively transforming the market dynamics in its favor. The aim is to make the competition irrelevant by redefining the boundaries of an industry, leading to new customer bases and enhanced profitability.

In contrast, competing fiercely in established markets emphasizes rivalry and often leads to price wars, which does not align with the essence of blue ocean strategy. Lowering prices than competitors focuses on cost-cutting rather than innovation, and reducing product offerings might streamline operations but doesn't inherently lead to new market creation.