The theory of the oceans

From the red ocean of ruthless competition, to the calm blue ocean and without competition, where to win you have to innovate and expand your market. The steps to be taken to establish rules capable of opening uncontested markets, in which growth is guaranteed
The Blue Ocean Strategy is the theory according to which the markets in which companies of any type operate are metaphorically seen as two parallel oceans of different colors, one red and one blue, depending on the way in which it is decided to operate on the market itself .

The red ocean is a hypothetical market in which business managers have focused for some time, which includes all the existing sectors, where there is a continuous struggle between competitors to win a greater share of demand within the same sector and where ‘is complete absence of innovation.

In this type of market, companies must be content with low profit margins, because the strategic approach is the traditional one, based on the defeat of competition. Conversely, a blue ocean is characterized by innovation!

The new ideas are developed through strategic moves, that is, a set of actions and managerial decisions that lead to the birth of new products and services that, in turn, give rise to new markets. But how do you go from a red to a blue ocean?

Although it may seem very difficult to abandon traditional logic and study new strategies, the turning point is not in the ingenious idea that will overwhelm competition, but is to give innovative value to something that already exists, interpreting it in a different form.

It is about creating “valuable innovation”: changing the mental approach and thus overcoming the traditional boundaries of one’s own sector of reference to explore new territories, looking mainly at non-clients and creating new uncontaminated market spaces.

In order to create a blue ocean, it is not enough to have executives with a good critical sense and able to learn from mistakes: managers must reflect on the fact that there is certainly a completely free market share, with a different structure where they can decide the rules themselves.

Romano Pisciotti: the boundaries of the market and the structure of the sector are not immutable elements, but are continuously redrawn if we are able to create a constant innovation of value.

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