The Blue Ocean Strategy: The Flow of Customers

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In modern times, the level of competition in almost every industry has increased significantly compared to several decades ago. For an organization to succeed, it needs something to stand out from its competitors and surpass them substantially in its industry. Often companies decide to reduce the cost of products, and a competitor company can benefit from this. This is due to the provision of higher-quality goods at a favorable price for the consumer. In this regard, a company that generates a low cost of products does not have the opportunity to attract new customers. Chang Kim and Rene Mauborgne have developed a Blue Ocean Strategy for such cases (Kowalska, n.d.). This article is aimed at detailed consideration of the proposed strategy and a discussion of its applicability to current and future organizational activities.

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An Overview of the Blue Ocean Strategy

The goal of the Blue Ocean Strategy is to create undeveloped market spaces in which there is no competition yet, or it is too small. In this case, such markets are being formed, the purpose of which is to meet new demand. Using the Blue Ocean strategy involves creating an environment with a high level of innovation. In such conditions, unique products are made with a specific value for the consumer, and there is practically no competition because no other enterprises can offer the same to the customer. The main task facing the company applying the Blue Ocean strategy is transforming an existing product, not creating a new one.

For some companies, such a decision may be lifesaving because they have the opportunity to apply innovations to their product and take a specific place in a market where there is no competition yet. A large manufacturer of Apple equipment was able to take advantage of this strategy and reoriented its product from powerful to status, which made it possible to be one of the best in its segment and not have competition among similar products. The company promptly took decisive measures, which gave a long-term result that can be observed today. Microsoft did not take similar steps and kept its product line on the market. Undoubtedly, some people are devoted to this company, but the more innovative Apple has become the leader of its niche.

Red Oceans

In addition to blue oceans, which are aimed at attracting new customers and retaining old ones due to innovations, there are also red oceans. Experts state that red ocean strategy aims to compete and include established and existing markets (Blue Ocean, n.d., para.3). Companies located in the red oceans do not expect high profits, forcing them to compete by lowering prices. It is such enterprises that form an environment with fierce competition and a lack of innovation. Adhering to this strategy, companies are trying to take a particular market share, which is a difficult task because there are many similar enterprises, and they all strive for the same result with similar efforts.

The Application of the Blue Ocean Strategy

Even though to apply the Blue Ocean Strategy, several steps need to be taken. Nevertheless, with the successful implementation of this method, the company will attract new customers, retain old ones, and increase profit indicators. It is necessary to understand what the company can change in the current product lines. It is essential to find other ways to offer products that did not exist before. A new market will be formed, and a company that has decided to change its strategy will take a leading place in a new area of business (Sharvashidze, 2016). The new market will be free from competition, and the company will be able to attract new customers and create an innovative product for regular clients. These are the goals that will be a priority for an enterprise that seeks to develop and increase financial profits.

The company’s main task should not be to fight with competitors but to create new offers for customers that will be of value to them. In addition, it is necessary to make this offer enjoyable for potential consumers to draw their attention to the innovative approach chosen by the company. For example, the company is engaged in creating products that are similar in their technical and external characteristics to other products of competing firms. In this position, the company is in the red ocean. The constant lack of time, the need for control, and price reduction does not make it possible to stand out among competitors and increase profits. In this position, the company is among the self-like, and all together, they arrive in the red ocean zone.

The Main Sense of Implementing the Blue Ocean Strategy

The company decides to introduce innovations, change its business strategy, and develop a unique offer for customers to get out of it. In addition, the standard approach to positioning the product on the market is eliminated, a senselessly large selection of products is reduced, which simplifies decision-making for the client, product advertising is improved, and a convenient piece of products on the website and delivered at a time comfortable for the client is created. Altogether, the company reaches a new level of development and moves from the red ocean to the blue one. Competitors remain in the same position as they were before and fight for each client. The company that has implemented the proposed innovations becomes the leader and draws customers’ attention to itself.

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Examples of the Companies

In addition to Apple, which took advantage of the Blue Ocean strategy in a timely manner, there are also others. For example, Cirque du Soleil executives and marketing managers realized that the usual circus is not as famous as it used to be. In general, it is more entertainment for children who may prefer other entertainment to it. Cirque du Soleil has changed its strategy and has become one of the most popular shows for adults and children (24Slides, 2018, para.5). They were able to find their blue ocean and became leaders among circuses and entertainment enterprises. Apple and Cirque du Soleil are currently the leaders of their industry, probably precisely because they could create a product that competitors cannot offer.


In conclusion, to give the company a new round, it is necessary to increase the flow of customers. This can be achieved by changing the business strategy, which will allow being more competitive. The Blue Ocean strategy will be one of the most successful options for transforming business processes and products into more attractive ones for the client. Companies that were able to make a unique offer for customers, created by following the steps of the Blue Ocean Strategy, have become one of the most widely known and popular in their industries, and customers’ attention remains on their products. The main recommendation for companies stagnating on the spot is to go beyond the existing business strategy and search for a new blue ocean.

Reference List

Kowalska, K. ‘Blue Ocean Strategy’ (n.d.) [SlidePlayer Presentation]. Web.

Sharvashidze, G. ‘Blue Ocean Strategy’ (2016) [SlideShare Presentation]. Web.

What are red and blue oceans? (n.d.) Web.

24Slides. (2018). What is the Blue Ocean Strategy? Web.

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