Qualitative research methodologies and Blue Ocean Strategy approaches

Blue ocean strategy is importance because it is based on innovation and differentiation. However, these factors are not applied to products and services, but to market space. Essentially, blue ocean strategy requires finding one's own niche market space which is at variation with that of industry standards. It requires a company to find ways in which it can effectively create its own space in which competition is minimal or unimportant and, based on the products and services it provides, is a relatively unique way of providing those things to customers. In fact, the focus of a blue ocean strategy is one in which organizations do not focus on existing customers, but rather focus on potential customers and a customer base that is different from its current one. Similarly, the focus is not so much on competitors and keeping up with others as it is in finding alternative ways to create new markets in which there are no competitors (Murray, no date). In this respect, blue ocean strategy is of marked importance because it is a distinct way of thinking about marketing and business strategy in general. It is decidedly less competitive than traditional red ocean strategy (in which the waters of the industry are 'stained' with organizations all competing with one another for the same customer by providing the same form of products and services) (Kim and Mauborgne, 2004, p. 77), and represents a fundamental paradigm shift in priorities for business strategy.

One of the best examples of a blue ocean move related to a particular product or service is the rise of Netflix. Netflix single-handedly redefined the video rental market which, at the time of Netflix's ascendancy, was largely run by nationwide retail conglomerates such as Blockbuster and Hollywood Video, which had succeeded in ousting most mom and pop shops from the industry in conventional red ocean fashion. Netflix, however, was able to create its own niche market by offering video rentals over the internet. Even prior to revolutionizing the video rental market with streaming, which provided the ultimate convenience for customers who could merely stay home and utilize infrastructure that they already had, Netflix induced innovation by mailing out DVDs to customers. The company also engaged in many other blue ocean tactics that alienated itself from Blockbuster and its other customers. It got rid of potentially costly late fees for customers, and also allowed them to keep videos for as long as the customers pleased. Another maneuver that Netflix made that greatly endeared itself to customers and helped to put the company in its own space in the rental industry was to base rentals on a monthly premium. That premium was extremely low (and at its inception was little more than the cost of a pair of Blockbuster rentals) and allowed customers to watch as many movies as they wanted to. Lastly, the Netflix has added original programming to the services it offers, which greatly distinguishes it from almost any other video rental company.