The Blue Ocean Strategy is a strategic approach whereby companies tap into new markets and business opportunities rather than competing directly with rivals in existing, highly competitive markets. The aim is to use innovation and differentiation to create a unique offering that generates new demand and pushes the competition into the background.
The strategy distinguishes between two types of market:
| Market | Description of the |
| Red Ocean | Existing markets characterised by intense competition and significant price pressure. |
| Blue Ocean | New or previously untapped markets with little or no direct competition. |
Companies pursue a Blue Ocean Strategy by:
- challenge existing industry conventions
- tap into new customer groups
- develop innovative products or services
- create additional value for customers
- clearly set themselves apart from the competition
The focus is not on winning market share from competitors, but on creating new markets and unlocking untapped demand. This enables companies to build sustainable competitive advantages and capitalise on growth opportunities that are often difficult to realise in established markets.
The Blue Ocean Strategy offers start-ups and innovation-driven companies in particular the opportunity to tap into new business areas and position themselves in the market at an early stage. innoWerft helps to develop innovative ideas, analyse market potential and design business models that are characterised by clear customer benefits and strong differentiation.