Generic business strategies vs. Blue Ocean strategy

 When planning efforts in company it is important to come up with the right plan to benefit your company. The right plan can excel your business while a bad plan can end it. Today we will take a look at two different business strategies to help you determine which one works best for your company. The two business strategies are generic business, and blue ocean strategy.  

Generic Business Strategies 

This type of strategy can be adopted by any company regardless of the product or service they sell. There are four main Generic business strategies:

Cost Leadership Strategy

 This strategy focuses on reducing expensive by lowering cost of product through sourcing from cheaper resources. In return this strategy allows to reach a broader audience and market segments.  

Differentiation Strategy 

This strategies has different product at a different price points, this offers a array of products, some with higher quality materials, or advanced technology. For example some companies sell their organic products at a higher price point then their generic products.  

Cost Focus Strategy 

This strategy involves controlling expenses by targeting a narrow market range. This allows for the price of products to be lower 

Differentiation Focus Strategy  

This strategy involves having different product at different quality points. This allows for success in reaching consumers with different preferences.  For example a company might sell higher quality clothing with different features as compared to their generic products.  

Blue Ocean Strategy

This strategies challenges entrepreneurs and company to rethink the market place and think outside the box. This allows to look past the traditional market place or consumer and look for different angles to market product or service, this creates larger marketing range.