Blue ocean strategies are a type of strategic pattern where a strategy is created around a key characteristic of a given asset class.
For example, a blue market strategy may seek to position blue ocean assets such as equities and bonds for maximum upside potential when the economy rebounds.
Alternatively, a strategy may focus on investing in emerging markets where a potential upside is limited.
The blue ocean pattern is also known as a blue curve or a triangle, and it is designed to identify asset classes that are best suited to a particular strategy.
For this reason, blue ocean strategies can help analysts identify asset class winners and losers based on a particular asset class or strategy.
The best blue ocean strategists will take advantage of this knowledge to identify the best strategy for their company.
Blue ocean strategy patterns are unique to a company’s market.
For example, it is extremely difficult to identify a blue-water strategy for any one stock.
This means it is impossible to predict what asset classes a company will end up in during the next 10 years.
While blue ocean analysts may not be able to identify blue-coverage opportunities for a company during the current period, they can identify the next wave of asset classes in a blue sea.
For a company like Facebook, a green ocean strategy is used to identify companies that are more likely to be profitable in the coming years.
As an example, blue-sea strategists can use the current trend in equities to identify stocks that are highly liquid and that are poised to rise in value over the coming 10 years, and blue-solution strategists, or those who focus on the stock’s next moves, can identify companies in which there is a potential positive upside to its fundamentals.
In the current market, there is no clear indicator for which blue ocean stocks will be the winners or losers in the next decade.
In the future, blue water strategists may be able identify companies where there are strong fundamentals but where a long-term return is unlikely.