Blue Ocean Strategy Vs. Stuck In The Middle
The blue ocean strategy is a theory that states companies can gain a competitive advantage by creating whole new markets through value innovation (so-called blue oceans) where competition doesn’t exist yet. Stuck in the middle is a scenario from Porter’s Generic Strategies, where for lack of focus or differentiation a company finds itself in a place where it lacks strategic advantage.
[image error]A blue ocean is a strategy where the boundaries of existing markets are redefined, and new uncontested markets are created. At its core, there is value innovation, for which uncontested markets are created, where competition is made irrelevant. And the cost-value trade-off is broken. Thus, companies following a blue ocean strategy offer much more value at a lower cost for the end customers.
[image error]In his book, “Competitive Advantage,” in 1985, Porter conceptualized the concept of competitive advantage, by looking at two key aspects. Industry attractiveness, and the company’s strategic positioning. The latter, according to Porter, can be achieved either via cost leadership, differentiation, or focus.
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Read Next: Blue Ocean Strategy, Porter’s Generic Strategies.
Related Strategy Concepts: Go-To-Market Strategy, Marketing Strategy, Business Models, Tech Business Models, Jobs-To-Be Done, Design Thinking, Lean Startup Canvas, Value Chain, Value Proposition Canvas, Balanced Scorecard, Business Model Canvas, SWOT Analysis, Growth Hacking, Bundling, Unbundling, Bootstrapping, Venture Capital, Porter’s Five Forces.
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