What is value innovation in the context of the Blue Ocean Strategy?

The Blue Ocean Strategy is highly relevant in today's competitive business environment. It encourages companies to create new demand rather than competing for existing demand, thus avoiding a fight they have little chance of winning. This is achieved through value innovation, where a company introduces new technologies designed to achieve both product differentiation and low costs. This approach aligns the three strategy positions of value, profit, and people, making it more effective than merely pursuing innovation for its own sake.

The Blue Ocean Strategy contributes to sustainable business growth by focusing on value innovation. This approach aligns the three strategy positions of value, profit, and people. It involves introducing new technologies designed to achieve both product differentiation and low costs, rather than merely pursuing innovation for its own sake. By creating demand, rather than competing for limited demand, companies can stop fighting a fight they have little chance of winning. This strategy allows businesses to carve out a new market space (the 'blue ocean'), reducing competition and increasing potential for growth.

The Blue Ocean Strategy influences a company's business model by encouraging the alignment of value, profit, and people. It promotes value innovation, a process where a company introduces new technologies designed to achieve both product differentiation and low costs. This strategy creates demand, rather than competing for limited demand, allowing companies to avoid battles they have little chance of winning.