Innovation Series - Blue Ocean Strategy: Create a Leap in Value for Your Customers
In recent years, the business landscape has witnessed a paradigm shift with the introduction of a unique concept - the Blue Ocean Strategy. In a discussion facilitated by the Carlson Center for Innovation and Entrepreneurship, this transformative approach was highlighted by Dr. Brian Gladden.
Traditionally, businesses have operated within a competitive environment, known as the 'Red Ocean'. This scenario represents a saturated market with intense rivalry for a share of existing demand. However, this environment fosters competition, often resulting in a price war and commoditization of products and services.
The Blue Ocean Strategy, conversely, proposes a radically different approach. Rather than competing in existing markets, businesses should venture into untapped market spaces - metaphorically termed 'Blue Oceans'. These spaces, devoid of competition, provide expansive growth and profit prospects.
The fundamental premise of the Blue Ocean Strategy is value innovation. Businesses are encouraged to break away from the competition by creating and capturing new demand, making the competition irrelevant. This is not about outdoing competitors, but rather about redefining the industry boundaries.
A crucial component of this strategy is understanding the 'value curve', a graphical representation of a company's relative performance across its industry's factors of competition. By identifying overlap with competitors, businesses can refocus their efforts to achieve differentiation and low cost.
The implementation of the Blue Ocean Strategy requires an astute comprehension of the current market landscape, a clear view of competitors' strategies, and an abundance of creative thought to unlock new demand in the market.
In conclusion, the Blue Ocean Strategy offers a novel perspective for businesses. It shifts the focus from competition to innovation, urging companies to explore new avenues for growth and profitability. This strategy champions the ethos of forward-thinking, differentiation, and daring innovation for success in today's dynamic business world.
About Rich Foreman
Rich Foreman is the founder of KidneyLuv which develops solutions for patients with Chronic Kidney Disease Patients (CKD). He is also the COO of IGH Naturals. Previously, as founding CTO, Rich led the team that developed the CordicoShield / CordicoFire Wellness App. Cordico was honored with the Sacramento Innovation Award in 2021. After achieving a 7 digit ARR, Cordico was acquired by Lexipol in 2020. Rich has a BS in Industrial Engineering from the University of Washington, an MPA from Troy State University and was an officer in the U.S. Navy.
Rich co-authored his book, "Tap into the Mobile Economy." Rich's blog was listed in Top 20 Marketing Mobile Blogs of 2014. He has been featured on KCRA3, NEWS10, 1170 Tech AM PowerDrive, Business Radio Money 105.5, SiliconIndia, the Sacramento Business Journal, and the Sacramento Bee. Rich is also the Founding Director of the Sacramento Chapter of Startup Grind and served a term as Utility Commissioner for the City of Folsom. Rich is a regular contributor to TechWire.net and StartupSac.com. Rich was the Co-founder of Apptology which was named Small Business of the Year in 2014 by the Sacramento Asian Pacific Chamber.
