By Erik Korsvik Østergaard, 10. May 2018
Staying relevant – both to employees and to customers – in the modern business world is a strategic challenge with new aspects to it. Driven by development in technology (e.g. digitization) and society (e.g. the growth in gig workers), this is both an impediment and an opportunity to re-frame your understanding of how to stay in so-called Blue Ocean. This blog posts puts light on how to do this.
Classic market development
The term Blue Ocean Strategy was coined by W. Chan Kim and Renée Mauborgne, professors at INSEAD and co-directors of the INSEAD Blue Ocean Strategy Institute, in their book by the same name.
Citing the Wiki, ‘Kim & Mauborgne argue that companies can succeed by creating “blue oceans” of uncontested market space, as opposed to “red oceans” where competitors fight for dominance, the analogy being that an ocean full of vicious competition turns red with blood.’
One classical way of looking at it is by using a frame of reference for understanding your own place in the market space, done by correlating your approach to what problems you’re solving towards what products you’re delivering: