Frameworks

Blue Ocean Strategy for the Rest of Us

You don't have to out-compete everyone. You can make the competition irrelevant.

Marcus Cole·January 8, 2024·7 min read
Blue Ocean Strategy for the Rest of Us
The fisherman who sails where no one fishes never goes hungry.

W. Chan Kim and Renée Mauborgne published Blue Ocean Strategy in 2005. The core idea: stop fighting over the same customers in a crowded market (red ocean) and create uncontested market space (blue ocean). Cirque du Soleil didn't try to be a better circus. They invented a new category — theatrical circus for adults willing to pay premium prices.

Most people think this framework is for big companies. It's not. It's actually more powerful for small businesses because you don't need to dominate a huge market. You just need to find your own little patch of blue water.

A bookkeeper we worked with was competing with every other bookkeeper in her city on price. Red ocean. We helped her use the Blue Ocean "eliminate-reduce-raise-create" grid. She eliminated tax prep (too commoditized), reduced the number of clients she took (from 50 to 15), raised her prices 3x, and created a new offering: a monthly "financial storytelling" session where she walked owners through their numbers in plain English. She now earns more working three days a week than she did working five.

Why this matters to you

Competition is exhausting. When you're in a red ocean, you're constantly looking over your shoulder, matching prices, copying features. It's a race to the bottom.

Blue ocean thinking gives you permission to stop playing someone else's game. For small businesses especially, the blue ocean is usually not some massive untapped market. It's a small twist — a different audience, a different format, a different price point — that makes you the only option instead of one of many.

Your Move

Draw a grid with four quadrants: Eliminate, Reduce, Raise, Create. For your business, list what you could eliminate that your industry takes for granted (meetings? proposals? hourly billing?). What could you reduce (scope? number of clients? turnaround time)? What could you raise (price? quality? personal attention)? What could you create that nobody in your space offers?

Fill in at least two items per quadrant. That grid is your blueprint for leaving the red ocean. You don't have to do everything at once. Pick one item from "Create" and test it this month.

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