Several blogs have already discussed the influence of the marketing department on business performance in general. The conclusions of the different studies, which are mentioned earlier, are the result of studying a large number of companies and marketing strategies. In this blog I want to focus on the blue ocean strategy.
While the red ocean strategy is a market-competing strategy and emphasizes the supply side, the blue ocean strategy is a market-creating strategy. This means companies are not competing on costs, but on value innovation, so are creating a new demand. Following this strategy allows a company to play a non-zero-sum game, which means the benefits gained by one company doesn’t include automatically a loss for other ones.
A question that pops up immediately is how long a company will be in that blue ocean position? This requires some explanation. Before answering I want to make clear it is not easy, because creating blue oceans is a dynamic process. There are three main barriers to move from a red ocean to a blue one. First of all you have the cognitive aspect. When changing strategy you'll have to make sure it still fits the vision and mission of the company. The second one is organizational; innovating requires large adaptations of the product process, which leads to the third aspect, the economical one. It causes high investments. To defend the blue ocean position, companies have to heighten these aspects.
Pauline Deturck
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