Question
Aldi's application of the Blue Ocean Strategy in Australia can be seen in its unique approach to the grocery market. Instead of directly competing with established competitors, Aldi redefined the market boundaries by offering about half of the lines of products that were typically offered. This value innovation approach allowed Aldi to create a new market space (or a 'blue ocean') where competition was irrelevant. As a result, Aldi has experienced consistent growth in Australia, opening an average of 30 new stores annually.
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Reconstruct the market boundaries. This step involves rethinking assumptions about the size and scope of a particular market. By understanding where the competition is operating and what they offer, readers can find opportunities to create a blue ocean for their business. A prime example of this type of thinking is the consistent growth of the grocery chain Aldi in Australia. By challenging the assumption that they had to compete directly with their established competitors, Aldi found their niche by offering about half of the lines of products that were typically offered. This value innovation approach resulted in the chain opening an average of 30 new stores annually.
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