How does the Blue Ocean Strategy compare to other business strategies in terms of cost and differentiation?

The Blue Ocean Strategy can be aligned with a company's digital transformation initiatives by identifying and creating new, uncontested market spaces that make the competition irrelevant. This can be achieved through the use of digital technologies to innovate and differentiate the company's offerings, while also reducing costs. For example, a company could leverage data analytics to gain insights into customer needs and preferences, and then use these insights to develop unique products or services. Additionally, digital technologies can be used to streamline operations and improve efficiency, thereby reducing costs. Ultimately, the goal is to create a 'blue ocean' of new market space where the company is the sole player, rather than competing in a 'red ocean' where competition is fierce.

The key components of the Blue Ocean Strategy that contribute to its success are its focus on differentiation and low cost. This strategy encourages companies to create new markets with high profit potential and less competition, rather than competing in existing markets. It's about creating and capturing new demand, and making the competition irrelevant. The strategy was conceptualized based on studies of company success and failure in more than 30 industries over 10 years.