Blue Ocean Strategic Moves

Bloomberg

In a little more than a decade, the U.S.-based financial information provider, Bloomberg became one of the largest and most profitable business information providers in the world. Challenging its industry’s conventional wisdom about which buyer group to target, Bloomberg created a blue ocean in the financial information services industry.

Until Bloomberg’s debut in the early 1980s, Reuters, Dow Jones and Telerate dominated the online financial information industry, providing news and prices in real time to the brokerage and investment community. The industry focused on purchasers —IT managers—who valued standardized systems, which made their lives easier.

Bloomberg saw that it was traders and analysts, not IT managers, who make or lose millions of dollars for their employers each day. Profit opportunities come from disparities in information. When markets are active, traders and analysts must make rapid decisions. Every second counts.

So Bloomberg designed a system specifically to offer traders a leap in value, one with easy-to-use terminals and keyboards labeled with familiar financial terms. The systems also have two flat-panel monitors so that traders can see all the information they need at once and built-in analytic capability with the press of a button.

By focusing on users, Bloomberg was able to create a blue ocean of strong and profitable growth. With this shift in focus Bloomberg could also see the paradox of traders’ and analysts’ personal lives. They have tremendous income but work such long hours that they have little time to spend it. Realizing that markets have slow times during the day when little trading takes place, Bloomberg decided to add information and purchasing services aimed at enhancing traders’ personal lives. Well before the internet offered such services, traders could use Bloomberg online services to buy items such as flowers, clothing, and jewelry; make travel arrangements; get information about wines; or search through real estate listings.

By shifting its focus upstream from purchasers to users, Bloomberg created a value curve that was radically different from anything the industry had seen before. The traders and analysts wielded their power within their firms to force IT managers to purchase Bloomberg terminals. This is an example of path three of blue ocean strategy’s six paths framework that suggests that companies can gain new insights into unlocking blue oceans by looking across the chain of buyers in an industry and shifting their focus to a previously overlooked set of buyers.

Blue ocean strategy is based on over decade-long study of more than 150 strategic moves spanning more than 30 industries over 100 years. The research of W. Chan Kim and Renée Mauborgne focused on discovering the common factors that lead to the creation of blue oceans and the key differences that separate those winners from the mere survivors and those adrift in the red ocean.

The database and research have continued to expand and grow over the last ten years since the first edition of the book was published and the strategic moves we studied depict similar patterns, whether blue oceans were created in for-profit industries, non-profit organizations, or the public sector.

Here are a few examples of blue ocean strategic moves from a variety of different industries and sectors. Select from the icons below to learn more.

    Bloomberg Financial News Case Study
    Canon Blue Ocean Strategy Case Study
    Cemex Blue Ocean Strategy Case Study
    Cirque du Soleil Blue Ocean Strategy Case Study
    Curves Blue Ocean Strategy Case Study
    Ford Model T Blue Ocean Strategy Case Study
    iTunes Blue Ocean Strategy Case Study
    JCDeaux Blue Ocean Strategy Case Study
    NetJets Blue Ocean Strategy Case Study
    Novo Nordisk Blue Ocean Strategy Case Study
    New York Police Department Blue Ocean Strategy Case Study
    Peirce College Blue Ocean Strategy Case Study
    Philips Blue Ocean Strategy Case Study
    QBHouse Blue Ocean Strategy Case Study
    Quicken Blue Ocean Strategy Case Study
    Polo Ralph Lauren Blue Ocean Strategy Case Study
    Viagra Blue Ocean Strategy Case Study