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Blue Ocean Strategy: Creating Your Own Market: 4DBC Group

What if your business could be in a league of its own? Instead of competing with others in your industry, what if you were setting the pace, creating unique products and profiting from lucrative new markets? Generating that kind of environment is the goal of blue ocean strategy, a business theory that suggests companies are better off searching for ways to gain "uncontested market space" than engaging in traditional competition. What if you could set the own pace of your business, creating unique products and profiting from lucrative new markets? Blue Ocean strategy, a business theory that suggests companies are better off searching for ways to gain "uncontested market space" than engaging in traditional competition, allows your company to do just that.

The term is derived from the book "Blue Ocean Strategy" (Harvard Business Review Press, expanded edition, 2015), by W. Chan Kim and Renee Mauborgne. It describes how, instead of viciously competing with other companies, organizations should find a way to work in a marketplace that is free of competitors.

The strategy represents the simultaneous pursuit of high product differentiation and low cost, thereby making competition irrelevant. The authors say it is successful because it attracts large numbers of customers while raising the cost of competition.
To discover an elusive blue ocean, Kim and Mauborgne recommended that businesses consider what the authors call the "Four Actions Framework" to reconstruct buyer value elements in crafting a new value curve. The framework poses four key questions:

Raise: What factors should be raised well above the industry's standard?
Eliminate: Which factors that the industry has long competed on should be eliminated?
Reduce: Which factors should be reduced well below the industry's standard?
Create: Which factors should be created that the industry has never offered?


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