Navigating New Waters: 7 Blue Ocean Strategy Triumphs

Discover how innovative companies have navigated new waters and achieved success through Blue Ocean Strategy.

Blue Ocean Action

Blue oceans represent untapped market spaces where highly profitable markets are created. Here we share seven bite sized case studies showcasing the framework in action. 

Uber

Uber disrupted the traditional taxi industry by creating a new market space for ride-sharing services. Using a mobile app to connect drivers with passengers, Uber provided a more convenient and often cheaper alternative to traditional taxis, appealing to a wide range of consumers who previously relied on various forms of transportation.

Southwest Airlines

Southwest Airlines created a blue ocean by offering low-cost, no-frills air travel. They eliminated unnecessary services like meals and seat assignments and focused on point-to-point flights instead of the hub-and-spoke model. This attracted cost-conscious travelers who were previously using other means of transportation.

Nintendo Wii

Nintendo revolutionized the gaming industry with the Wii by targeting a broader audience, including families and older adults, rather than competing directly with Sony and Microsoft for hardcore gamers. The Wii’s motion-sensing technology created a new market segment focused on active, family-friendly gaming experiences.

Apple iTunes and iPod

Apple created a blue ocean by linking the iPod with iTunes, providing a seamless and legal way for customers to purchase and organize digital music. This innovation attracted not only tech enthusiasts but also casual music listeners, expanding the market for digital music players and legal downloads.

Starbucks

Starbucks transformed the coffee shop industry by offering an upscale, café-like experience. They didn't just sell coffee; they created a "third place" between home and work where people could relax, work, and socialize. This repositioning attracted a new customer base willing to pay premium prices for a unique coffee experience.

Cirque du Soleil

Cirque du Soleil is a textbook example because it didn't just innovate within the circus industry but redefined it by eliminating costly elements like animals and star performers, focusing instead on theatrical storytelling and artistic performances. This drew a new audience of adults and corporate clients.

Salesforce

Salesforce pioneered cloud-based CRM solutions, moving away from traditional, on-premise software that required significant IT infrastructure and investment. By offering CRM as a service via the cloud, they opened up the market to small and medium-sized businesses that previously couldn’t afford such solutions.

For a comprehensive guide on how you can apply Blue Ocean strategy check out this guide.