Free Essay

Blue Ocean Strategy Plan

In: Business and Management

Submitted By jonwesleymack
Words 807
Pages 4
Blue Ocean Strategy Plan MKT/421

Introduction In today's competitive market where companies attempt to outperform one another by creating a brand new product or adjusting an existing product in attempts to appeal to a larger customer base are referred to as a Blue and Red Ocean strategy plans; “Red Oceans represent industries in existence today, and the industry boundaries are defined, accepted, and the competitive rules of the game are understood. Blue oceans denote all the industries, not in existence today- the unknown market space untainted by competition." (Kim & Mauborgne, 2004, p. 82(10), 76–84.). Movie theaters are one example of a Red Ocean. Initially, individuals would watch movies at a drive-in movie theater that later progressed to indoor movie theaters where customers were given the opportunity to purchase foods and beverages. In attempts to outperform standard movie theaters, iPic Entertainment, LLC created iPic movie theaters which offers movie goers a luxury movie theater experience by offering a chef-driven menu instead of standard movie theater concession stands, comfortable lounge chairs, blankets, and pillows while watching movies, and a lounge area where customers can purchase mixed drinks and cocktails. (iPic Entertainment, LLC, n.d.).
Description of a Blue Ocean Strategy and its Importance The automotive industry is one example of an organization that creates a Blue Ocean strategy plans within its self to reconstruct their brand, create and capture a new demand, and make their completion irrelevant. Automobile manufacturers continuously seek ways reinvent their brand and compete with their completion. Offering hybrid and solar power vehicles for customers concerned about the harmful toxic chemicals automobiles emit, cars that are fuel efficient, extended warranties, additional safety features, and amenities such as backup cameras and navigation systems. It's important for companies to create a Blue Ocean strategy plan because it gives them the opportunity to compare their current policy to its competition, explore ways to increase their customer market, create innovative advertising techniques, and explore alternative methods to out-perform their competition.
A Product or Service Considered a Blue Ocean Move Ford is an automobile manufacturer that has reconstructed its Ford Mustang for fifty years by redesign’s its frame, keeping the automobiles familiarity with customers while still adding innovative features, increasing its horsepower, adding an EcoBoost engine, adding a unique blend of increased power and efficiency, making the vehicle affordable to its customers, and increasing the vehicles technology. Because this is year marks the fiftieth anniversary of the Ford Mustang, Ford has launched a new Blue Ocean marketing strategy plan that appeals to a younger generation and create a new demand for their product by enlisting pop-culture experts in its Mustang's campaign. Pollack (2014) “In positioning the Mustang on its 50th anniversary and pitching the vehicle on its engine or specs, Ford is focusing on Mustang as an experience—"what it is like to be on a road trip with no agenda, no schedule, and just to be free."
This new marketing campaign exploits the pop-culture generations passion for adventure along with the ability to be free from rules and responsibilities for a short period.
Alternative Red Ocean Move for The Same Product and its Pro’s and Con’s The Ford Mustang is an intended Blue Ocean strategy plan within Ford's automobile collection of vehicles because of its ability to reinvent its self continually, but the Chevrolet Camaro is an alternative Red Ocean product within the same industry that has aligned its marketing strategy similar to Ford's by offering a high-performance sports car; this has created a new demand for individuals that love Chevrolet vehicles and want an alternative to the Ford Mustang because they consider Ford cars unreliable and poorly made. The pros of Chevrolet creating its Camaro is their ability to provide a sports car similar to the Ford Mustang that appeals to individuals that love Chevrolet vehicles. The cons of the Chevrolet Camaro are consumers like myself that feel the Camaro is imperfect replica of the Mustang and believe it's more logical to purchase a Mustang instead of a vehicle that imitates the Mustang's abilities. Conclusion Red Ocean plans are strategies companies must employ to stay relevant and assess their competitors; Blue Ocean plans are strategies companies can use to create a new product within its market. The alternative to organizations conducting Blue Ocean strategy plans are individuals that create a new uncontested demand for a product that either captures a new market or makes their competitors product irrelevant.

Reference iPic Entertainment, LLC. (n.d.). The iPic Entertainment Experience. Retrieved from https://www.ipictheaters.com/ipic-corporate.aspx
Kim, W., & Mauborgne, R. (2004). BLUE OCEAN STRATEGY. Harvard Business Review, 82(10), 76–84.
Pollack, J. (2014). Ford Enlists Pop-Culture Experts in Mustang Campaign. Retrieved from http://adage.com/article/cmo-strategy/ford-s-mustang-influencers-campaign-drive-trial/295237/

Similar Documents

Premium Essay

Oceano Azu

...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....

Words: 2976 - Pages: 12

Premium Essay

Blue Ocean Strategy Paper

...Blue Ocean Strategies MKT 421 February 2, 2015 Strategy and Positiong Paper for StressLess: A Fitbit Product What is innovation? By definition, it is a new method, or idea that revolutionizes the current standard. Innovation is paramount to success in a competitive market. A company can choose innovation in the current market, or use a red ocean strategy. This strategy is to take a current product or process and improve upon it. Another option businesses have is to endeavor for a blue ocean strategy: the strategy of creating a new market. A blue ocean strategy takes the market to a new level. A new product, or a new business is invented in a blue ocean strategy. Blue ocean strategies are vital in the business cycle, as the blue ocean represents the new, uncharted territories in business. Without blue ocean strategies, society would never make advance leaps in technology. The world would have received the cotton gin, as it was an improvement on a current tool. But would the world have received the printing press? The computer? The wheel? Currently, society is in a technological upswing. Blue ocean strategy moves were common when technology was evolving into the common, household use that it experiences now. With technology becoming so common, the red ocean strategy has taken over the blue ocean strategy seen previously. Blue ocean strategies are being seen more in societal and cultural convenience rather than mechanical devices....

Words: 835 - Pages: 4

Premium Essay

Blue Ocean Strategy

...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....

Words: 1445 - Pages: 6

Premium Essay

Cola War

...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....

Words: 3177 - Pages: 13

Premium Essay

Blue Ocean

...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....

Words: 846 - Pages: 4

Premium Essay

Blue Ocean Strategy

...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....

Words: 860 - Pages: 4

Premium Essay

Blue Ocean Strategy

...Blue ocean strategy is imperative in the world of business, it breeds innovators and allows visionaries to build their own brand. An example of the Blue Ocean strategy is the introduction of iTunes from Apple. In 2003, Apple introduced us to iTunes, where we can legally download songs and albums on to our computer and different...

Words: 557 - Pages: 3

Premium Essay

Blue Ocean Paper

...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....

Words: 778 - Pages: 4

Free Essay

Blue Ocean Strategy Paper

...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....

Words: 798 - Pages: 4

Premium Essay

Management Control System

...Chapter 8 Strategic Planning and Ten–Ten Planning To be strategic is to have plans of action that provide directions for operating in an uncertain world. In this section, our focus is on developing strategic plans to compete in a world characterized by monopolistic competition. Notice that the emphasis is on plans of action and not on a single plan. There is no single plan or single planning approach that can deal with the complexity of contemporary markets. What is needed is a continuous process for churning out new plans, for differentiated products and services, in order to compete in a dynamic environment. This chapter presents a brief overview of the various approaches to strategic planning and provides an overview of the planning literature. There is a lot of material to slog through, but each approach to planning has something to offer. This overview will set the stage for presenting the Ten–Ten planning process in the next chapter. The next chapter will integrate the various planning approaches and present a simplified, yet robust approach to planning called the Ten–Ten planning process. The key benefit of the Ten–Ten planning process is that it can be used for developing business plans in a very short time span. 8.1 Planning Concepts There are two generic planning strategies that a business can pursue.Michael Porter originally identified three generic strategies. He noted that a business can also focus on a market that is not very competitive....

Words: 6434 - Pages: 26

Premium Essay

Butch's Box Shop Case Study

...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...

Words: 686 - Pages: 3

Premium Essay

Blue Ocean Strategy

...We argue that head-to-head competition results in nothing but a bloody red ocean as rivals fight over shrinking profits. Success comes not from battling competitors, but from making the competition irrelevant by creating ‘‘blue oceans’’ of uncontested market space. The creators of blue oceans don’t use the competition as their benchmark. Instead, they follow a different strategic logic that we call value innovation. Value innovation is the cornerstone of blue-ocean strategy....

Words: 3892 - Pages: 16

Premium Essay

Blue Ocean Strategy

...For those who have not heard this quote before, it is associated with a 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....

Words: 3869 - Pages: 16

Premium Essay

Anybody Could Read It

...Ninth AIMS International Conference on Management January 1-4, 2012 Blue Ocean Strategy – A Critical Analysis of Application on Indian Companies Smita Shukla smitashukla_in@yahoo.com University of Mumbai, Mumbai Blue Ocean Strategy which is much discussed strategic approach that needs to be followed by such companies that wish to beat the market competition. The paper analyses the practical application of Blue Ocean strategy in case of Indian companies. This paper also discusses the risk factors/negatives associated with the emergence of application of Blue Ocean Strategy in India/worldwide. 1. Introduction According to the well-known authors and management thinkers, W. Chan Kim and Renee 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....

Words: 3483 - Pages: 14

Premium Essay

Stretegic Position of the Company

...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 website). For the LG Electronics aspect, that we are going to focus on in...

Words: 2443 - Pages: 10