A blue ocean strategy means creating new, unexplored markets.
Casella Wines did that with Yellow Tail wine, which became the fastest-growing brand in Australia.
Like the vintner, take these four steps:
1. Eliminate traditional factors that no longer add value. Casella tossed out two: aging and tannins.
2. Reduce choices to avoid complexity. Casella narrowed the selection to one white and one red.
3. Raise standards so customers won’t hesitate. U.S. employees got to wear Aussie outback clothing, making the brand fun.
4. Create new sources of value, such as simple labels and low prices.
— Adapted from Blue Ocean Strategy, W. Chan Kim and Renee Mauborgne, Harvard Business School Press.