How do you respond to competitors when using Blue Ocean Strategy?

2 Focus on the big picture

Another principle of blue ocean strategy is to focus on the big picture, not the numbers. This means that you should not get distracted by the short-term fluctuations in the market or the performance indicators of your competitors, but rather keep your eyes on the long-term vision and goals of your blue ocean move. By focusing on the big picture, you can avoid getting trapped in the red ocean of competition and benchmarking, and instead pursue a compelling strategic narrative that communicates your value innovation to the customers and the stakeholders. To focus on the big picture, you need to use the four actions framework, a tool that helps you formulate your blue ocean strategy by asking four key questions: what to eliminate, what to reduce, what to raise, and what to create.

3 Reach beyond existing demand

A third principle of blue ocean strategy is to reach beyond existing demand, which means that you should not limit yourself to the current or known customers in your industry, but rather explore the untapped or latent demand in the market. By reaching beyond existing demand, you can create new customers who are not served by your competitors, and expand your market potential and growth. To reach beyond existing demand, you need to use the three tiers of noncustomers, a tool that helps you segment and target the potential customers who are either soon-to-be, refusing, or unexplored noncustomers of your industry.

4 Build execution into strategy

The final principle of blue ocean strategy is to build execution into strategy, which means that you should not separate the formulation and implementation of your strategy, but rather align them in a coherent and consistent way. By building execution into strategy, you can overcome the organizational hurdles and resistance that often hinder the successful execution of a blue ocean move, and mobilize your people and resources to support your strategic objectives. To build execution into strategy, you need to use the fair process, a tool that helps you foster trust and commitment among your employees by engaging them in the strategic decision-making, explaining the rationale behind your strategy, and clarifying the expectations and feedback mechanisms.