Blue ocean strategy, a concept first introduced in 2004, by W Chan Kim, and Renee Mauborgne in their bestselling book of the same name, talks about how to achieve a breakthrough in a highly saturated market by focusing on creating a new uncontested market. Blue ocean strategy is a systematic approach that helps emerging service providers to create a new demand, rather than competing for an already existing demand. This is in contrast to the red ocean strategy, which focuses on contesting in an already existing market space, which is full of competitors.
Below, I have pasted an image illustrating contrasts between red ocean and blue ocean market.
What points should be kept in mind to ensure a smooth blue ocean strategy execution?
It’s a no-brainer that usually the execution of any innovative strategy is followed by various hurdles and criticism. According to W Chan Kim, and Renee Mauborgne, four primary hurdles to execute a strategy include cognitive hurdle, resource hurdle, motivational hurdle, and political hurdle. In order to overcome these hurdles, there is a preferred order to execute the blue ocean strategy. For better understanding, I have presented this order in the form of a flowchart below.
What parameters should teleradiology service providers focus on to execute a blue ocean strategy?
Blue ocean strategy consists of thirteen strategic tools that can be used by the companies to execute this strategy. One of the thirteen strategic tools is strategy canvas. Strategy canvas is a line graph that captures current market landscape and the future possibilities for a company. To plot the strategy canvas, ten parameters related to teleradiology services were taken into account namely, pricing, turnaround time, diagnostic accuracy, subspecialty expertise, emergency support, peer review availability, board-certified radiologists’ availability, advanced radiology solutions / systems integration, B2B clientele, and B2C clientele. Below, I have pasted a line graph for strategy canvas comparing the above-mentioned parameters between conventional and blue ocean strategy teleradiology services.
To sustain / achieve a breakthrough in this market space, companies are suggested to focus on creating value innovation. Implementation of advanced technologies, such as AI, blockchain, cloud computing, deep learning, and machine learning can help the engaged players to stand out from the crowd. It is worth mentioning that B2C clientele is this area, which is targeted by only a few companies (less than 15%); emerging players may focus on this business model as this is relatively less competitive. In addition, entering into partnerships / collaborations can help the emerging start-ups to gain more exposure in this domain.
For more details on this emerging domain, check out the following report: