BOS = Niche Market Strategy

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Blue Ocean Strategy > Best Practices > BOS = Niche Market Strategy

BOS = Niche Market Strategy
Oscar Umeh, Strategy Consultant, Nigeria, Member
Is BOS not just another phrase for a niche market strategy? They share the common feature of a 'lone player'.

Tactic versus Methodology
Andrew Nelson, CEO, Australia, SIG Leader
Oscar, I have to say I disagree with you, for at least 2 reasons.
1. Firstly BOS is not about creating niches. The professors always say BOS is not about small incremental or niche changes but about major changes. So although you can certainly apply it to a niche market, BOS is definitely not just a niche approach.
2. Secondly, niche marketing is really just a single tactic in the strategists kitbag, while BOS is a complete methodology that you use to not only formulate the strategy but also validate and execute.
Sorry to disagree but I think niche marketing is an incremental tactic while BOS is a methodology creating major change.

Niche Strategy
KAMAL AZIZ, Manager, Malaysia, Member
Absolute control of a market is impossible. If we analyze, a niche is what is required to make the difference.
Competition is healthy but 'consistency' is the winning factor.
If the battle is too great to claim the victory, offer your competitor to share the cake. Do it by selling a portion to them. Be their ally, eliminate the war and make peace, retain your ownership and be part of them. Everybody stays in the market.

Sustaining BOS
Oscar Umeh, Strategy Consultant, Nigeria, Member
Kamal, an organisation can sustain its position in a BOS by creating barriers to entry for potential competitors. As a matter of fact, that is the force that underlies Michael Porter's potential entrants.
Over time the organisation gains economies of scale and captures customers. This makes such company strong and brings it in the position to suffocate any competitor who eventually breaks the market barriers trying to make the whole thing into a ROS.

Finding a Specific Customer Group to Target is Only One of Possible BO Strategies
Nedyalko Terziev, Student (MBA), Singapore, Member
@Oscar Umeh: Hi, targeting a specific niche can in fact be a Blue Ocean strategy- it is path #2 of the six possible paths strategists can consider when searching for potential blue ocean moves (Chapter #3 from the BOS book).
However, it is not the only one! Cirque du Suleil for example is not a niche market strategy. Neither is the JFS fighter jet (quite on the contrary, in fact).

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Andrew Nelson

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