Let's go in-depth with a Blue Ocean strategy example featuring Tesla
We’ll see how Tesla’s model 3 became the best-selling luxury car in the world in 2021, beating the both BMW and Mercedes in sales. We'll give you a complete strategy canvas example in excel so you can easily make your own. You can download the strategy canvas template (in excel) and slides here.
If you know Patrick Bet David, an entrepreneur and influencer, Blue Ocean Strategy ranks as #1 on his list of 10 must read books – you can check out his list here.
First, what is the meaning of blue ocean strategy?
Michael Porter and other strategy experts typically offer an either/or approach to strategy: either pick low cost OR differentiation, but not both. Renee Moauborgne and W. Chan Kim flout this ultimatum in the book, claiming that companies can
create uncontested market space and vie for BOTH low cost and differentiation.
In this blue ocean world you’ve created, the competition is irrelevant, because you are competing on different dimensions. You break the value/cost trade off because you are creating unique value and capturing new demand.
The majority of companies, especially heritage brands and organizations, live in a red ocean of rivalry where strategies get copied and become similar, always fighting tooth and nail to eke out competitive advantage to maintain and grow market share.
There are plenty of cases - if you have some good Red or Blue Ocean examples please comment below!