Key Principles of Blue Ocean Strategy

1. Create uncontested market space: Instead of competing in existing markets, BOS focuses on finding new opportunities that are not yet being served by other companies. This involves challenging existing industry assumptions and identifying new customer segments.

2. Break the value-cost trade-off: BOS emphasizes the need to deliver both high value and low cost, rather than making trade-offs between the two. This can be achieved by finding ways to reduce costs while simultaneously increasing customer value.

3. Align strategic focus across the entire organization: BOS requires a company-wide commitment to innovation and value creation. All aspects of the company, from marketing to operations, must be aligned with the BOS strategy.