Now-a-days the new mantra to sustain in the market is Competing in overcrowded market is no way to sustain high performance.

The real opportunity is to create uncontested market space. This is the new upcoming market strategy; Blue Ocean Market. There are many different types of marketing strategies online these days that are being used to build successful businesses. Broad classification is done into Red Ocean market and Blue Ocean Market. What is red ocean market? Red ocean market is the present market. There is a defined market, defined competitors and a defined methodology to run the business. The business competes, not for innovation but to stabilise and sustain in the market. What is blue ocean market? Blue ocean market is the non captured, non ventured market. There is no competition and has lot of potential for growth and profit. Blue ocean may be either entirely new or a red ocean converted onto a blue ocean. The traditional rules of companies are not followed. Since it is entirely a new market the rules can be newly set and made as a benchmark. A few of the starring characteristics of blue ocean market are: 1) Value Innovaton: Unless new value is added, and there is innovation in the product, the customers will not be willing to buy the product. Hence blue ocean market has to pay special attention to innovation. 2) Eliminating elements which people do not value: Blue ocean market must be the blend of customers desires, their wants and their expectations. Only then their will be profit. 3) Identify untapped demand: Understanding noncustomers and underutilized customers often releases untapped demand. Often, obstacles to purchase can be easily removed.

4) Position along the emotional- commodity axis 5) Thinking in terms of product line rather than product

The most important characteristic of this strategy is Break the value- cost trade off (seek greater value to customers and low cost simultaneously) Align the whole of the firms activities in pursuit of differentiation and low cost.

A technique of reducing or forgoing one or more desirable outcomes in exchange for increasing or obtaining maximize other desirable outcomes in order to the total return or effectiveness under

given circumstances is called trade off. Value-Cost Trade-off Value-Cost Trade-off is the conventional belief that companies can either create greater value to customers at a higher cost, or create reasonable value at a lower cost. Here strategy is seen as making a choice between differentiation and low cost. In contrast, those who seek to create blue oceans pursue differentiation and low cost simultaneously. This enables them to create a dramatic leap in value for buyers and the company itself. Differentiation involves selecting one or more criteria used by buyers in a market - and then positioning the business uniquely to meet those criteria. This strategy is usually associated with charging a premium price for the product - often to reflect the higher production costs and extra value-added features provided for the consumer. Differentiation is about charging a premium price that more than covers the additional production costs, and about giving customers clear reasons to prefer the product over other, less differentiated products.

With this strategy, the objective is to become the lowest-cost producer in the industry. Many (perhaps all) market segments in the industry are supplied with the emphasis placed minimising costs. If the achieved selling price can at least equal (or near)the average for the market, then the lowest-cost producer will (in theory) enjoy the best profits. This strategy is usually associated with large-scale businesses offering "standard" products with relatively little differentiation that are perfectly acceptable to the majority of customers. Simultaneous Pursuit of Differentiation and Low Cost A blue ocean is created in the region where a companys actions favourably affect both , its cost and value proposition to buyers. Cost savings are made from eliminating and reducing the factors an industry competes on. Buyer value is lifted by raising and creating elements the industry has never offered. Over time, costs are reduced further as scale economies kichk off, due to the high sales volume that superior value generates. Blue ocean creators attract customers immediately in large volumes as they are venturing into a new product or service. This results in putting would be immitators at an immediate and continuing cost disadvantage.

Four Action Framawork: The four action framework of blue ocean strtegy includes i) ii) iii) iv) Eliminate Reduce Raise Create

A Few Examples: In the auto industry is , GM created the blue ocean of emotional, stylized cars in 1920s, the Japanese created the blue ocean of small, gas efficient autos in the 1970s . Among Indian brands, Tata motors is a notable brand in creating blue ocean strategy. Their plan to offer the Rs 1 lakh car is creating a new demand. To attract the Indian customers who are price, value conscious and those who intend to buy two wheelers. The main idea is create new segments in commercial passenger vehicles and extend its coverage of the entire spectrum of customer needs in mass transportation from the rural interiors to cities as well as the top-end luxury mass transportation segment.

Blue ocean strategy applies across all types of industries from Consumer Product Goods, financial services, entertainment, IT, and even defense. New wealth is created by expanding the demand of the economy. The focus is making the right strategic moves and large R&D budgets are not the key to creating new market space. Strategic move is the set of managerial actions and decisions involved in making a major market-creating business offering and that have delivered products and services that opened and captured new market space, with a significant profitable growth.