Summary of the Blue Ocean Strategy

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In stead of playing a null sum game in the "blood-red" ocean, where sharks fight with each other for the market share, the blue ocean strategy is to look at the "red ocean" and list as many segments of "non-customers" of the red ocean as possible. The non-customers are all of those people that are not served by the red ocean. Step 2 of the blue ocean strategy is to desegmentize the non-customers, search for their common needs that are not served by the sharks in the red ocean. Fulfillment of those needs will form the value proposition of the blue ocean strategy. The desegmentation makes the market "an ocean" in stead of a "small, blue, pond". Step 3 is to lessen the cost, not sales price, by eliminating the components that the customer does not see to be valuable. The elimination starts from the unvalued components that cost the most. It's preferable to eliminate high cost components that the sharks in the red ocean are never able to eliminate. That slightly limits the red ocean sharks from expanding the red ocean.

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