What does the word “Ocean” mean for marketers?

  • Blue Ocean Strategy is referred to a market for a product where there is no competition or very less competition. This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure.
  • Blue Ocean Strategy can be applied across sectors or businesses. It is not limited to just one business.
  • In today’s environment, most firms operate under intense competition and try to do everything to gain market share. When the product comes under pricing pressure there is always a possibility that a firm’s operations could well come under threat. This situation usually comes when the business is operating in a saturated market, also known as ‘Red Ocean’.
  • When there is limited room to grow, businesses try and look for verticals or avenues of finding a new business where they can enjoy uncontested market share or ‘Blue Ocean’. A blue ocean exists when there is potential for higher profits, as there is now competition or irrelevant competition.
  • The strategy aims to capture new demand and to make competition irrelevant by introducing a product with superior features. It helps the company in making huge profits as the product can be priced a little steep because of its unique features.
  • Example: With the creation of Viagra, Pfizer created a blue ocean in lifestyle drugs by going beyond the boundaries of the pharmaceutical industry at the time. Pfizer’s wildly successful blue ocean strategic move that launched Viagra challenged the functional-emotional orientation of the pharmaceutical industry. It shifted its focus from the pharmaceutical industry’s largely functional orientation – medical treatment – to lifestyle enhancement, an emotional orientation.

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