Sales

What is the difference between a blue ocean and a red ocean market? How do you prevent a blue ocean product from becoming a red ocean? Kim and Mauborgne caution that when you create a blue ocean market, imitators will inevitably arrive, eventually turning it into a red ocean. There are two ways you can respond: 1) prolong your blue ocean, and 2) find a new blue ocean. Let’s consider each of these approaches in turn.

What are your customers thinking? How do you measure KPI for customer experience? There are many different approaches to measuring customer experience. In their book Blue Ocean Strategy, Renée Mauborgne and W. Chan Kim advise that you use what they call a “buyer utility map,” which is essentially a customer experience scorecard for analyzing how your customer responds to your product at every stage.  A blank example of a customer experience scorecard is shown below.

How is pricing determined in the blue ocean strategy? What are the benefits of low-cost pricing? Blue Ocean Strategy authors W. Chan Kim and Renée Mauborgne advise setting your price to maximize the number of buyers in your market. In other words, you want to select a price that will make your product attractive to as many potential customers as possible.  Keep reading to learn about the blue ocean strategy pricing approach.