Private Label Insider

Inside tips on Private label Skin care

  • Home
  • About
    • Kind Words
    • As Featured In
    • Advertising Rates
  • Programs
    • Inner Circle
    • Beauty Brand Bootcamp
    • Beauty Brand MBA
  • Blog
  • Quiz
  • Free Workshop
  • Resources
    • Beauty Business Entrepreneurs Facebook Group
  • Contact
You are here: Home / Getting started / How Beauty Entrepreneurs Can Use the Blue Ocean Strategy to Eliminate the Competition

How Beauty Entrepreneurs Can Use the Blue Ocean Strategy to Eliminate the Competition

By Melody Leave a Comment

Have you heard of the Bue Ocean Strategy? The concept was introduced in 2005 by W. Chan Kim and Renee Mauborgne in their book Blue Ocean Strategy.

Picture the ocean – vast, uncharted, and full of potential. This is the market. Now, divide the ocean into two categories – uncharted blue ocean and bloody red ocean.

Red Oceans are all of the industries that already exist. Every current niche and product. These oceans are red because they’re bloody from all the competition. They’re teeming with sharks competing on things like price, features, benefits, etc.

Blue Oceans are the uncharted areas where competition has not yet struck. These oceans are wide open for new industries and innovative products. Blue Oceans are open for business without immediate fear of competition.

As a Beauty Entrepreneur, you want to swim in a Blue Ocean – aka you want to operate entirely outside of the competition. Suppose you sell a skincare product in a Blue Ocean. In that case, it won’t matter that everyone and their sister is selling a similar product because your point of differentiation is so far outside of the common areas of competition that you won’t have any direct competitors.

How to Build a Blue Ocean

The four primary ways to create a blue ocean are to raise, reduce, eliminate, and create.

Raise: Raise the standard for some aspect of the product or industry so far above the competition that others can’t keep up. An example of this is when Apple released the iPhone in 2007. It was so far ahead of the competition (with the first touchscreen phone) that Apple was able to thrive on the technology for nearly a decade.

Reduce: Reduce some element of a given niche or product. Environmentally savvy brands do this regularly, striving to reduce their carbon emissions, use of plastic, and overall impact on the planet. SkinnyGirl created a Blue Ocean by significantly reducing the calories in alcohol in their Skinny Cocktails and Skinny Wine collections.

Create: Create a new niche, feature, or an entirely new industry. In 2001 when Napster launched their music streaming service, they created a Blue Ocean with a new industry. And even though Napster was subsequently taken down, it changed the face of the music industry for good and paved the way for Spotify and Apple Music.

Eliminate: Eliminate some component(s) of the industry to either streamline processes or be more attractive to consumers. Tesla does this exceptionally well by bypassing traditional sales models and selling directly to consumers. By avoiding dealerships and other middlemen, Tesla can better control their sales funnels and manufacturing times.

Be Cautious

However you choose to create a Blue Ocean strategy, be careful not to get too comfortable. Eventually, the competition will catch up – as was the case with Apple. After coasting on the iPhone’s success for nearly a decade, they stopped being the most cutting-edge brand. Apple is still competitive, but they’re no longer in a Blue Ocean. It’s bloody and red like the rest of the industry.

Blue Oceans don’t stay Blue forever.

Want to create a Blue Ocean for yourself? Join me in the Beauty Brand Inner Circle and Mastermind.

Related Posts You Might Like...

  • Beauty Entrepreneur summit is live now!
  • Are You a Laser Beam or a Disco Ball?
  • 3 Reasons Why Private Label May Not Be The Best Option For You

Share this:

  • Facebook
  • Twitter
  • LinkedIn
  • Pinterest
  • More
  • Print
  • Pocket
  • Tumblr
  • Reddit

Filed Under: Getting started

Get The Express!

A FREE Weekly Private Label Newsletter From My Desk To Yours!

Leave a Reply Cancel reply

  • Email
  • Facebook
  • LinkedIn
  • Twitter

Your email is safe with us!

Categories

Recent Posts

  • How to Make Your Beauty Brand Recession-Proof
  • Scared to Launch? 5 Ways to Get Over The Fear
  • How Beauty Entrepreneurs Can Use the Blue Ocean Strategy to Eliminate the Competition
  • Beauty Entrepreneur Podcast 003: Sarah Shaw
  • Just getting started? These 3 tips will help!

Our Partners

Shopify"
Shopify Ecommerce - Start your FREE trial now!

Google Ads

Like Us On Facebook

Like Us On Facebook

Programs

  • Beauty Entrepreneur Inner Circle
  • Beauty Brand Bootcamp
  • Beauty Brand MBA

Highlights

  • About
  • Beauty Brand Quiz
  • Resources
  • Beauty Business Entrepreneurs Facebook Group
  • Contact Us
  • Privacy Policy

Get The Express!

A FREE Weekly Private Label Newsletter From My Desk To Yours!

Privacy Policy
Our Privacy Policy has been updated. You can review it here. Privacy Policy

Copyright © 2023 Private Label Insider • Designed by Eco-Office Gals