...Blue Ocean Strategy, a book by W. Chan Kim and Renee Mauborgne, develops and explains how to beat the competition by reaching beyond it into new unexplored markets. The authors use the metaphor of the blue ocean as a direct contrast to red oceans. Red oceans are the battling grounds for typical market competition where firms fight for an already defined and stagnate market. Blue oceans, on the other hand, describe a strategy that breaks away from the blood red ocean into clear, uncharted oceans, or new markets (see Appendix A for the details of the differences). The authors studied the business launches of 108 companies, more than 150 strategic moves from 1880 to 2000, and more than 30 industries to uncover the key traits and practices of what they call "Blue Ocean Strategy." Kicking off the book with four analytical tools that promise to help firms find and exploit untapped markets, the authors offer a step by step approach, comprised of six principles, on how to break away from the competition of red oceans and execute a blue ocean strategy. They show how and why a blue ocean strategy leads to a market where competition is - for a time - obsolete. Each principle is explained and supported by real world examples from such companies as Ford, Cirque du Soleil, Dell Computers, Casella Wines, and even the New York City Police Department. The chart, figure 1, illustrates both the concept of blue ocean strategies, and the organization of the book, Blue Ocean Strategies. Lady...
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...Blue Ocean Strategy Robert Lowe Principles of Marketing December 2, 2013 Abstract For a long time many businesses have use a military strategy in order to find profit in an existing market. Fighting for a competitive advantage and battling competitors over a piece of the profit. Taking this head-on approach only leads to an overcrowded market with a shrinking profit pool. This is what the book calls a “red ocean”. Blue Ocean on the other hand wants you to look outside the box and make the competition irrelevant. In the future companies will not succeed battling competitors, but instead finding uncontested market space ripe for growth. Swimming in an area that only has a few swimmers is a lot better than swimming with the sharks. This book shows you six principles that will help companies create a Blue Ocean Strategy. The authors use data collected from over thirty different industries, and have studied more than hundred different strategies from the last century. Creating Blue Oceans It is suggested that companies and organizations need to create demand in uncontested market space, rather than competing head-to-head with competitors in an existing market space. These two strategies are called “Blue oceans” and Red Oceans”. Red oceans are existing companies in the market. Their goal is to compete with competitors for a bigger slice of the pie. This strategy leads to overcrowded markets which make the profit shares shrink. Blue oceans is the opposite, demand is created...
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...Blue Ocean Strategy Paper February 2, 2015 MKT/421 Ellen Carter Within the world of business it can be considered a battlefield. Companies in the same industry are in constant battle with each other. They are competing every day for the same customers, trying to outwit the other with every move they make. This strategic way of business is referred to as the red ocean strategy. Companies focus on building advantages over their competition, taking whatever a competitor does and attempting to do it better. While this has worked for companies for over one hundred years, it is becoming more difficult for companies to distinguish themselves from one another in their respective industry. For example, Colgate and Crest have lost their core customers over the years, now the only way for one to out sale the other is to drop the price. With this happening, the vision for profits and growth is becoming immensely blurred. Imagine if a company lived beyond these boundaries, or outside of this battlefield. One would be able to capitalize on the abundance of opportunity to grow. There have been numerous innovators who have succeeded at restructuring an industry, or creating a completely different industry. This business strategy is considered the blue ocean strategy. Blue Ocean refers to the unchartered waters that companies have yet to explore. Companies practicing the blue ocean strategy attempt to create demand for a product instead of focusing on the supply of a product. If one...
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...Blue Ocean Strategy Paper University of Phoenix Marketing MKT/421 Michael Wells June 10, 2014 Blue Ocean Strategy Paper Blue Ocean Strategy is a business strategy for businesses to overcome ones competition in a unique way that will separate themselves from the competition. According to Kim, W., & Mauborgne, R., “The blue ocean include the potential industries that do not exist at present and all the untapped market spaces and demand demographics that will take shape as and when such created from scratch” (2004). The blue ocean can be brought up two different ways, one by being completely new to the industry and there is nothing quite like it in comparison. The other would be created within the red ocean by copying some of it functionality but not all. The blue ocean is the reason why there is so much competition. Everyone is looking for the next best thing. Innovations and plans coming into reality and being the only product of its kind out there. The marketing business thrives on new products how it can be introduced to the public and if its cost worthy. Companies can succeed more if they think out of the box for the next best thing that has not been introduced before and will blow the consumer mind and will make everyone want one. When this occurs it place the company in the spotlight and it makes consumers aware of the new product as well as other products the company offers. Curves franchise began in 1995. There were a lot of health clubs out...
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...a leap into the blue ocean W. Chan Kim is The Boston Consulting Group Bruce D. Henderson Chair Professor of Strategy and International Management at INSEAD. ´ Renee Mauborgne is The INSEAD Distinguished Fellow and a professor of strategy and management at INSEAD. This article is based on their book, Blue Ocean Strategy: How to Create Uncontested Market Space and Make the Competition Irrelevant (Harvard Business School Press, 2005). orporate strategy is heavily influenced by its military roots. The very language of strategy is imbued with military references – chief executive ‘‘officers’’ in ‘‘headquarters’’, ‘‘troops’’ on the ‘‘front lines.’’ Described this way, strategy is about confronting an opponent and fighting over a given piece of land that is both limited and constant. Traditionally, strategy focused on beating the competition, and strategic plans are still couched in warlike terminology. They exhort companies to seize competitive advantage, battle for market share, and fight over price. Competition is a bloody battlefield. C The trouble is that if the opposing army is doing exactly same thing, such strategies often cancel each other out, or trigger immediate tit-for-tat retaliation. Strategy quickly reverts to tactical opportunism. So where should companies turn for a more innovative approach to strategy? The answer lies with something we call blue-ocean strategy. We argue that head-to-head competition results in nothing but a bloody red ocean as rivals fight over...
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...Blue Ocean Strategy 1. Introduction According to the well-known authors and management thinkers, W. Chan Kim and enee Mauborgne, ‘the only way to beat the competition is to stop trying to beat the competition’. According to them, the entire market universe can be divided into two oceans: Red Ocean and Blue Ocean. Red Ocean is representative of all such industries/products which already exist and are thus representative of the known market space. Blue Oceans denote the industries /products not in existence today. Blue Oceans thus represent the unknown market space. In the Red Ocean industry boundaries are defined and well accepted. This means the existing Competition is well known in the market space and the players in the market try to outperform their rivals to get greater share of the existing market demand. As existing market space gets crowded prospects for good profit and growth in future are reduced. Products then lose their distinctiveness and become regular commodities resulting in cut throat market competition thus turning Red Ocean more red or bloodier. Blue Ocean in contrast is defined by untapped market space, opportunities for highly profitable growth and possibility for new demand creation. 2. Understanding Creation of Blue Ocean – Value Innovation According to the W. Chan Kim and Mauborgne, most of the blue oceans that are created emerge within the existing red oceans by expanding existing industry boundaries. However some blue oceans can also be created...
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...the competition, and tried to use its new marketing strategy for spreading into a new market place that no one has took up before. This report first of all will start from over viewing LG Company and its strategy by present. Secondly will go into specifically to analyze the strategy which on launch its Ў§ChocolateЎРmodel and its competitors, and also to analyze the feasibility of its strategies through understanding its strength and weakness. Finally, the report will apply the key factor to its global capability, to discuss the further modification and development opportunity. LG Company Overview In 1947, LG Group founder Koo In-hoe established Lucky Chemical Industrial Corp. (currently LG Chemicals) in South Korea, LG initially manufactured a cosmetic called Lucky Cream. After 50s to the end of 70s, LG established its other business more widely into different areas. Now LG is a manufacturer which field in three main businesses which are Electronics, Chemicals, and Telecommunications & Services (LG official website). The company is based in Seoul, South Korea, they are operating around 130 subsidiaries around the world with around 120,000 employees in 2005. The company recorded revenues of KRW84 trillion during the fiscal year ended December 2005, an increase of 21.2% over 2004. The increase was primarily attributable to the increase in revenues from the telecommunication equipment and handset segment, and they plan to reach the sales of KRW92 trillion in 2006 (LG official...
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...Blue Ocean Strategy Jaime Quintero MKT/421 March 23, 2015 Salomon Chavira Blue Ocean Strategy While businesses are continuously looking for techniques in which they can better cope with their rivals, one theory recommends they would be better off studying methods in which they are contending against no one but themselves. This is known as the blue ocean strategy. Blue Ocean Blue Ocean Strategy is a recently established marketing concept obtained from the devises of W. Chan Kim and Renée Mauborgne. This term is used to describe instead of working in conditions, known as the red ocean, where companies are savagely hostile against each other for a share of the marketplace, businesses should attempt to discover a means to work in a marketplace that is not riddled with competition and is free of rivalries. In this marketing theory red and blue oceans were selected to indicate the division. Chan’s notion has great significance as it is germane in the current marketplace. It is beneficial to industrialists and business owners considering what choices to make and create the suitable market for their goods or services while investing in the appropriate areas (Schawbel, 2014). Red versus Blue In one respect, globalized production, international channels of data and technological advances have actively intensified industry production. This empowered merchants to fabricate a widespread collection of goods and services (Schawbel...
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...Blue Ocean Strategy Brigetta Bailey MKT/421 January 26, 2015 Shannon Peterson Blue Ocean Strategy An old wives tale states, “there’s nothing new under sun” and some would believe that to be true. However authors W. Chan Kim and Renee Mauborgne proved that theory wrong, with the development of the blue ocean strategy, which was adopted by corporations in different industries. Nintendo’s one company that utilized the blue ocean strategy to pull their company out of the red ocean, which is the gaming industry. Today’s analysis will discuss, competition, differentiation, and the four action framework, which is the basis of the strategy. In addition the analysis will look at pros and cons and relevance. Competition & Differentiation Authors W. Chan Kim and Renee Mauborgne wrote Blue Ocean Strategy in 2005. Their research encompassed over 150 strategic moves, utilized for the past 100 years, and spanning over 30 industries. (Brooks, 2013). The book dispels the notion that one must outdo its competitors to achieve success in the market in which it operates. Three main areas are covered in length, with the first being competition. The authors argue corporations will not achieve success battling competitors, who when examined operate and likely offer similar products and services. One cannot outperform its competitor and therefore must adopt a different mindset. One where the firm itself becomes its own competitor, by creating new market space. When firms create...
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...before. I believe that if you try hard enough you can do anything. First of all, remember if you had profitable company for many years which you build up from scratch, it already means something. Of course, breathing new life into a business takes a solid plan and determination. The most important task is to clearly define why the business is dying. In “Butch's Box Shop” case they already knew what was wrong. One of their biggest asset- wooden box factory was slowly but surely pushed out of business by cardboard and plastic. Simply, from their customers point of view those were better alternatives for them due to the price and usage. I believe they should not even spend resources on marketing for the wooden boxes, because no matter what marketing strategy they would use, cardboard and plastic boxes are just better for storing things like food and they cannot change that. What they can do is to come up with new product line. Their situation reminds me the book I just read. It is called Blue Ocean Strategy and it is all about how to turnaround your business. The main idea is that there are two oceans. There is a red ocean full of predators, and there is a blue, empty ocean. Blue Ocean Strategy is focused on blue undiscovered ocean. For example, everybody heard about Cirque Du Soleil, but who knows...
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...Blue Ocean Strategy Jamie M. Finch MKT/421 July 7, 2014 Mark Vitale Blue Ocean Strategy The marketing world is cut-throat and full of competition. Monopolies cut down all opposition until they are last and only ones standing. Oligopolies exist as multiple competitors work together to control the market and keep incoming competitors from entering the market. Perfect competition is a myriad of competitors constantly fighting with each other over their slice of the market. It is easy to see how such market circumstances could be considered as “bloody”, and earn these markets the title of red oceans. A red ocean is easily understood since it “represents all the industries in existence today” (Kim & Mauborgne, 2004). These industries have boundaries, and competition is in varying states. A blue ocean is “all the industries not in existence today” (Kim & Mauborgne, 2004). Cell phones are everywhere today, only a small portion of the U.S.’s population does not use this product. In 1980’s cell phones existed, but they were not the craze that they are today. Most individuals used landline phones. In the beginning, the cell phone market was a blue ocean. It has since become a red ocean market from the sheer amount of competitors entering the field offering a variety of styles, OS, and services. A blue ocean is a place of potential. A blue ocean can also be created from the red ocean. If an already existing service or product industry can provide other complementary...
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...strategic strategy known as Blue Ocean Strategy; Blue Ocean was coined by W. Chan Kim and Renee Mauborgne. In this strategy, the authors use the term “blue ocean” to get people to envision creating their own “blue oceans” which is often thought of as untouched and deep. This is the exact opposite of the beliefs of other strategies like Porter, D’Aveni, and Moore who work within the current market to beat the competitors. In the past ten weeks, this class has tested me by having to read challenging articles that presented several different strategic theories to us. While all of the theories brought us interesting and valuable information, the one that resonated most with me and stuck out the most was the Blue Ocean Strategy. I have always been someone who enjoys a challenge and I feel that while this theory is a challenge, it has the most potential to bring organizations the greatest amount of success. To fully understand why I selected this theory opposed to one of the other ones, I feel that first I need to explain exactly what Blue Ocean Strategy is and who has used it and gained enormous amounts of success. While there are many people who believe taking down the competition is the best plan for their company and will result in huge success, Blue Ocean Strategy does not even factor it into their decision making process as a way to reach success. To discuss Blue Ocean Strategy, we also have to understand Red Ocean Strategy. Red oceans are all other strategies that are currently...
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...TLFeBOOK Blue Ocean Strategy Blue Ocean Strategy How to Create Uncontested Market Space and Make the Competition Irrelevant H A R VA R D B U S I N E S S S C H O O L P R E S S BOSTON, MASSACHUSETTS ( ) ( ) ( ) ( ) ( W. Chan Kim Renée Mauborgne Copyright 2005 Harvard Business School Publishing Corporation All rights reserved Printed in the United States of America 09 08 07 06 05 5 4 3 2 1 No part of this publication may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form, or by any means (electronic, mechanical, photocopying, recording, or otherwise), without the prior permission of the publisher. Requests for permission should be directed to permissions@hbsp.harvard.edu, or mailed to Permissions, Harvard Business School Publishing, 60 Harvard Way, Boston, Massachusetts 02163. Library of Congress Cataloging-in-Publication Data Kim, W. Chan. Blue ocean strategy: how to create uncontested market space and make the competition irrelevant / W. Chan Kim, Renée Mauborgne. p. cm. Includes bibliographical references and index. ISBN 1-59139-619-0 (hardcover: alk. paper) 1. New products. 2. Market segmentation. I. Mauborgne, Renée. II. Title. HF5415.153.K53 2005 658.8 02—dc22 2004020857 The paper used in this publication meets the requirements of the American National Standard for Permanence of Paper for Publications and Documents in Libraries and Archives Z39.48–1992 To friendship and to our families, who make our worlds...
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...water, etc., are shared by the society, as well as internal corporate profits that keep the business running. Environmentally, a triple bottom line organization works to reduce its carbon footprint and be responsible for the entire life cycle of its products. Social and environmental issues play a greater role in consumer and B2B choices than ever before. The "Green" movement was on the fringes of mainstream culture just a few years ago. Today, global warming, eco-sensitivity, fair trade and sustainability are issues that can have a tremendous impact on businesses of all sizes. A relatively new marketing model -- the triple bottom line -- offers businesses of all sizes an opportunity to create sustainable businesses that benefit people, the plan and corporate profits. While the GENERAL MANAGEMENT Page 2 traditional...
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...Lumpur. It is located at Jalan Malinja 2, Taman Bunga Raya, Setapak, Kuala Lumpur. It is near with Tunku Abdul Rahman University College and Army Camp Wardieburn, Setapak. The business has been successful and now they have another branch of Mali's Corner at No.9-1, Jalan Langkawi, Platinum Walk, Danau Kota. Mali's Corner Sdn Bhd has been established on 15 July 2008 and has been registered under Company Commission of Malaysia (SSM). Mali's Corner Restaurant Char Koay Teow started their business on 3rd Mei 2009 at Platinum Walk, Danau Kota, Kuala Lumpur. The owner of Mali's Corner Restaurant Char Koay Teow are Mr. Jamali Bin Saat and Puan Rodziah Binti Shafie. Looking at the good acceptance from customer toward their business, Mr. Jamali plan to expand their business and add more branch franchise and dream to establish the biggest empire of Malay restaurant in Malaysia. Other than that, they also received the best char koay teow in town award that showed their credibility in serving the fine and good quality char koay teow. Mali's Corner Products Mali's Corner restaurant specialized in preparing char koay teow. The char koay teow comes with 3 sizes which are small plate, the big one and lastly the special one. The different between them are the size of prawn and also the number of the prawn....
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