...Blue Ocean Strategy Paper August 20, 2015 MKT/421 Ronald Rouillier The Blue Ocean Strategy is invented by Professors Renee Mauborgne and W. Chan Kim. This strategy proposes companies do better when they search for “uncontested market space” instead of engrossing in traditional competition. It entails how businesses fight for marketspace instead of finding or creating different ways to work in the marketplace that is competitor free. This strategy focuses on generating new distinctive merchandise using innovation as the launch for these new products. This strategy makes the competition irrelevant, captures and creates new demand, and creates unchallenged market space. “Blue ocean strategy presents a largely descriptive approach into assessing how successful companies are capable of creating a business model transformations that provide a foundation for creating completely new value offerings to the marketplace,” (Mauborgne, pg., 49,8. 2005). To find a subtle blue ocean, the professors suggest that entrepreneurs and businesses contemplate the “Four Actions Framework.” The Four Action Framework is to create new buyer constituents in an innovative way and consists of Eliminate, Raise, Reduce, and Create. Blue Ocean Strategy Example Southwest airlines are known as the low-cost carrier. This company anticipated alternative industries by creating innovative and better benefits for their cost- sensitive and non-customer travelers. Southwest adapted the following strategies...
Words: 556 - Pages: 3
...Blue Ocean Strategy Paper Blue Ocean Strategy is a book written in 2005 to provides readers the ability to no fight against their competitors brands but rather develop ones brand in what some would call a neglected or unusual market place. The book was recognized by the Wall Street Journal as a best seller, along with numerous other recommendations and acknowledgments from industry giants. Blue Oceans was written by two authors with the intent to show that companies can succeed not by battling competitors, but rather by creating ″blue oceans″ of uncontested market space (Brooks, 2013). When examining the Blue Ocean Strategy one must take the time to understand the thought process fully. There must be a willingness to abandon the practices and strategies that are commonly thought of today as the norm and amerce oneself into the Blue Ocean Strategy. The Blue Ocean Strategy is a methodology that encompasses the theory that there are two oceans. The first being a red ocean. The red ocean can be described as the common businesses that are seen every day. Within the red ocean there are boundaries and limitations that are accepted in industry and competition is clearly defined. While blue oceans in contrast denote all the industries not in existence today, the unknown market space, untainted by competition. In blue oceans, demand is created rather than fought over. There is ample opportunity for growth that is both profitable and rapid. In blue oceans, competition is irrelevant...
Words: 721 - Pages: 3
...Blue Ocean Strategy Paper Anthony Dobson MKT/421 July, 2014 Nickolas Skelton Blue Ocean Strategy Paper A blue ocean strategy can be described as the ability to create uncontested market space and render the competition obsolete. This strategy provides a systematic way to unlock the ocean of unrealized talent, opportunities, and energy within an organization quickly and at a low cost. It can achieve all of this from a management standpoint while preserving time and efficiency. The aim of a blue ocean strategy is not to out-perform the competition in the existing industry, but to create new market space or a blue ocean, thereby making the competition irrelevant. While innovation has been seen as a random/experimental process where entrepreneurs and spin-offs are the primary drivers this strategy offers systematic and reproducible methodologies and processes in pursuit of blue oceans by both new and existing firms. Frameworks and tools within blue ocean strategies are designed to be visual in order to not only effectively build the collective wisdom of a business but also to allow for effective strategy execution through easy communication. Blue ocean strategies cover both strategy formulation and strategy execution. The three key conceptual building blocks of blue ocean strategy are: value innovation, tipping point leadership, and fair process. While competitive strategy is a structuralism theory of strategy where structure shapes strategy, blue ocean strategy is a Reconstructionist...
Words: 1018 - Pages: 5
...which they are competing against no one except themselves. This strategy is called the blue ocean strategy. The term describes how instead of working in settings known as the red ocean, where business are rigorously competing with each other for a percentage of the marketplace, businesses should try to find a place in the marketplace that is free of competition. The Blue Ocean Strategy argues that innovative companies will advance not by battling competitors, but by strategically creating “blue oceans” of uncontested market space ready for growth. Using the blue ocean strategy means pursuing low cost and differentiation at the same time. The theory behind is not to outperform the competition in the current industry, but to create a blue ocean or new market space, making the completion insignificant. In order to find the fleeting “blue ocean” a business or an individual must take into consideration the “Four Actions Framework”. According to the authors of the Blue Ocean Strategy, the “Four Actions Framework” is used to reconstruct buyer value elements in crafting a new value curve. To break the trade-off between low cost and differentiation and to make a new value curve the framework presents four vital questions. The first http://www.smartinsights.com/online-brand-strategy/brand-positioning/blue-ocean-strategy-digital-marketing/ http://www.businessnewsdaily.com/5647-blue-ocean-strategy.html Blue Ocean...
Words: 254 - Pages: 2
...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...
Words: 798 - Pages: 4
...MKT 421 Week 4 Blue Ocean Strategy Paper Blue Ocean Strategy - Introduction The blue ocean strategy in marketing is a unique approach to building a customer base. Rather than try to compete in a crowded marketplace with existing companies, a blue ocean strategy looks to build an entirely new market segment that has not other existing firms. With the rapid growth of technology and globalization, the importance of a blue ocean strategy has grown in recent years. The following essay will analyze the blue ocean strategy and offer suggestions on how it can be employed in the modern business environment. What is a Blue Ocean Strategy in Marketing? Companies must consider the four Ps of marketing when developing a new offering, which include product, placement, price, and promotion. In order to compete successfully, it is necessary to give consumers a certain value proposition. For example, a firm can offer a product at a lower price or at a higher quality than what is presently offered by other firms. But what if a firm could avoid having to deal with competition altogether? This is exactly what the blue ocean strategy attempts to do – create a new marketplace that is free of competitors. Marketers build an entirely new product or service that is currently unknown to consumers. It is necessary to thoroughly educate the public about the new product in order to gain interest and confidence. Once this has been completed, the new product will be positioned in point that provides...
Words: 750 - Pages: 3
...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...
Words: 778 - Pages: 4
...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...
Words: 557 - Pages: 3
...Blue Ocean Strategy Paper KT/421 What is Blue Ocean Strategy and its importance Blue Ocean strategy is a strategic form of marketing which ideal model is to be different in a new market place. Blue Ocean strategy goal is to create a new way of marketing instead of common forms of marketing such as competiveness. Another one of Blue Ocean strategy goal is to set the pace with unique products with profit gain in new markets. Blue Ocean believes in leaving the ways of Red Ocean which is characterized by unmorally hills of competitions. Blue Ocean strategy is imperative because most prospects in Red Ocean established market places are consistently reducing. Today’s technology has drastically improved industrial production which is now allowing suppliers to produce product at a massive amount in a short amount of time. Blue Ocean is also important in the American Market. In the American Market brands are becoming more and more similar. Therefore, customers are no longer basing their purchase decisions on brands but more so on prices. Product or Service that night be considered a Blue Ocean Strategy An acceptable example of a Blue Ocean Action is Apple’s iTunes. In 2003 Apple confused into the agenda music amplitude as a provider and benefactor of agreeable – and signaled the end of the antecedent innovation, the CD. Apple created iTunes as online account area customers could download legal, top superior songs for a actual reasonable price. ...
Words: 777 - Pages: 4
...Blue Ocean Strategy Paper In today’s global economy, many companies are competing each and every day for the same customers. On the other hand, the elite companies are sailing in uncontested waters by being innovative and creative in obtaining profit and growth. Research spanning over 100 years in thirty industries was conducted, and the result was astonishing. The conclusion of the research was that companies need to stop competing head-on in existing industry space because they should make competition irrelevant. How do you make competition irrelevant? What product or service can fall in this innovative strategy? What is the alternative to this strategy and what are the pros and cons? First of all, how to make competition irrelevant? Blue Ocean created by W. Chan. Kim and Renee Mauborgn is Strategy based on 100 years long study of more than 150 strategic moves, spanning more than 30 industries. It pursues differential and low cost. Blue ocean strategy is based on the simultaneous pursuit of differentiation and low cost. It creates uncontested market space because it doesn’t aim at competing nor does it aim at outperforming the competition; rather it aims at making the competition irrelevant by reconstructing the industry standards and boundaries. Blue ocean strategy uses tools and framework to break away from the competition. By doing so, it creates new market space. Blue ocean strategy starts by assessing the current state of play in an industry to exploring the new market...
Words: 888 - Pages: 4
...Introduction The blue ocean strategy in the environment of marketing is an extraordinary way to embark on creating a monopolistic customer base. It describes how the blue ocean strategy looks to find ways to build a new market segment that has no current existing businesses and without competing in a crowded marketplace with existing companies. As new technological innovations emerge daily, blue ocean strategy is rapidly growing. The paper will intel the characteristics of the blue ocean strategy while providing ideas of how to employ them into the business environment. Description and Importance of Blue Ocean Strategy Blue Ocean Strategy is a non-fiction business book written in 2005 by W. Chan Kim and Renee Mauborgne. Kim and Mauborgne sought to find a more vigorous strategy approach than Harvard Professor Michael Porter’s “five forces”. They argued that Professor Porter’s strategy would have businesses remaining in the “red ocean” where there’s heavy competition and a very crowded marketplace. The importance of the Blue Ocean Strategy is to encourage existing business customers to move from the red ocean which is characterized as a bloody, shark infested waters competition marketing environment to the blue ocean waters than has no competitors and ample amount of space to evolve new beginnings. Kim and Mauborgne used the Cirque du Soleil as an example of how the Blue Ocean Strategy can be successful. “Despite a long-term decline in the circus industry, Cirque du Soleil...
Words: 1037 - Pages: 5
...Blue Ocean Strategy Paper Roberta Willis Marketing/ MKT 421 Nick Okoro July 28, 2014 Today’s society is among one that is very competitive, and always trying to discover ways to beat out competition. This is typically done by advertising their products by celebrities so the consumers are more likely to buy. Due to the way products are promoted and advertised, it makes it harder for the consumer to make a decision on what to buy. Competing in over-crowded industries is not way to sustain high performance. The real opportunity is to create blue oceans of uncontested market space (Kim,W.,Mauborgne,R. 2004). Ten years ago A Harvard business article was written Blue Ocean Strategy by W. Chan Kim and Renee Mauborgne in 2005 a book was published which sold about 3.5 million copies around the world. The real opportunity is to create blue oceans of uncontested market space (Kim,W.,Mauborgne,R. 2004). The strategy behind the blue ocean is to create uncontested market space, make competition irrelevant and create and capture new demand (Kim,W.,Mauborgne,R. 2004). The book focuses not only n trying to beat your competition, but trying to focus on making competition irrelevant. This can be done by producing more value for the consumers which will allow you to move into other markets. When abiding by the blue ocean strategy there is hardly any competition to face. This makes it easy for the company and the consumers. In January 2010, the iPad was introduced to the world to make...
Words: 746 - Pages: 3
...Blue Ocean Strategy Paper Roberta Willis Marketing/ MKT 421 Nick Okoro July 28, 2014 Today’s society is among one that is very competitive, and always trying to discover ways to beat out competition. This is typically done by advertising their products by celebrities so the consumers are more likely to buy. Due to the way products are promoted and advertised, it makes it harder for the consumer to make a decision on what to buy. Competing in over-crowded industries is not way to sustain high performance. The real opportunity is to create blue oceans of uncontested market space (Kim,W.,Mauborgne,R. 2004). Ten years ago A Harvard business article was written Blue Ocean Strategy by W. Chan Kim and Renee Mauborgne in 2005 a book was published which sold about 3.5 million copies around the world. The real opportunity is to create blue oceans of uncontested market space (Kim,W.,Mauborgne,R. 2004). The strategy behind the blue ocean is to create uncontested market space, make competition irrelevant and create and capture new demand (Kim,W.,Mauborgne,R. 2004). The book focuses not only n trying to beat your competition, but trying to focus on making competition irrelevant. This can be done by producing more value for the consumers which will allow you to move into other markets. When abiding by the blue ocean strategy there is hardly any competition to face. This makes it easy for the company and the consumers. In January 2010, the iPad was introduced to the world to make...
Words: 746 - Pages: 3
...Blue Ocean Strategy Paper The Harvard Business Review “Blue Ocean Strategy” by W. Chan Kim and Renee describes the “business universe” and its two “distinct kinds of space,” the red ocean and the blue ocean. The article explains how the market space if divided by these two oceans. The red ocean symbolizes the industries that are currently in present in the market. These industries serve as models for current competitors as well as future ones. On the other side, blue oceans are industries that are “not in existence today.” These industries are unknown and could be developed from red oceans or from completely new industries. The main difference between these two types of markets is the customer demand. Red oceans have fixed demand and competitors constantly compete against each other for consumers’ acceptance and attention. Blue oceans create a demand that did not existed before, generating greater opportunities for growth. Although the concept of red and blue oceans might be new for many, it has existed since the moment industries were created. In summary, red oceans are existing industries and blue oceans are unknown industries. When we look back, we realize that all industries that seem essential for daily tasks were once unknown. Long time ago, the pool of industries that conformed the red ocean was not as immense as it is today. As blue industries were introduced, the red ocean became larger. As of today, the Standard Industrial Classification (SIC) has been...
Words: 322 - Pages: 2
...Blue Ocean Strategy Paper Jamie Carbary MKT 421 Professor William Alan McIntyre November 23rd, 2015 Blue Ocean Strategy Paper Introduction In the current competitive market, businesses often adopt several strategies so as to compete effectively. These strategic moves are usually derived from market – competing strategies. Innovation and creativity are the keys whereby organizations can focus on finding and creating new market spaces resulting in the opening of the new market and increasing their profit margins. The term “Blue Ocean” denotes all the industries that are not in existence today (Kim & Mauborgne, 2004). It includes unknown market and is untainted by competitions. In blue oceans, demand is created rather than fought over. Thus, there is an ample opportunity for growth that is rapid and profitable too. On the other hand "Red Ocean" is regarded as the existing market space with numerous risks and limited opportunities with limited profit margin, whereby companies strive to sustain their position (Gruwer, 2014). The companies operate in saturated market conditions with numerous small and big players and try hard to exploit the demand of customers. Blue Ocean Strategy Blue ocean strategy is the new way of thinking, a new strategic mind – set, a bold and new path to winning the future. It is grounded in analysis and energizes everyone. Blue ocean strategy focuses on creating new markets rather than competing with existing ones so as to stand apart and keep...
Words: 1226 - Pages: 5
