...Zaki History and background • A video game console is just a computer that is made only. To Play games. • These systems started to gain popularity in the 1970s with consoles that played only Pong. • Current console success started in 1985 with Nintendo’s super Smash Brothers. History and background • A video game console is just a computer that is made only. To Play games. • These systems started to gain popularity in the 1970s with consoles that played only Pong. • Current console success started in 1985 with Nintendo’s super Smash Brothers. History and background • A video game console is just a computer that is made only. To Play games. • These systems started to gain popularity in the 1970s with consoles that played only Pong. • Current console success started in 1985 with Nintendo’s super Smash Brothers. Marketing The strategy for marketing consoles is based on: – Better technologies/graphics Ex: HD, Blue Ray and 3D – Better games Ex: FIFA, Halo and Mario Production • Production started in the US then moved to China and Japan. • Development is expensive but the consoles cost little to produce. • The longer a product is sold the more profitable each sale. Competition • As the market became more profitable: • Computer companies began investing in the market. • Sony created it’s famous PlayStation • Microsoft introduced the Xbox and Xbox live. Growth and Profit Strategies Red Ocean “Bloody competition to take a larger...
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...Wii: Creating a Blue Ocean. The Nintendo Way ÁREA MARKETING ESTRATÉGICO Wii: Creating a Blue Ocean The Nintendo Way Patricio O’Gorman1 RESUMEN Durante la última década, Nintendo ha tenido serias dificultades para mantenerse a flote en el mercado ultra-competitivo de los video-juegos. Su suerte se revirtió solamente cuando modificaron radicalmente su estrategia (creando un Blue Ocean), cambiando así las reglas del juego. Con el lanzamiento de la Nintendo Wii a fines del 2006, recuperaron su posición de liderazgo y se convirtieron en el principal rival a vencer por rivales de la talla de Sony (Playstation 3) y Microsoft (Xbox360). ABSTRACT For several years now, the video game industry has been locked into what can best be described as a Red Ocean, where the focus is on beating the competition, winning market share, capturing consumers and outselling the competition. Blue Ocean Strategy2 (BOS), on the contrary, focuses on creating new demand in places where there is none, thus making the pie bigger instead of fighting over whom gets the largest slice of the pie. Since the launch of the Wii (pronounced “we”) video-game system, Nintendo has taken great steps toward making the competition irrelevant. This short article is meant to analyze the company’s strategy and understand it from the point of view of BOS. JEL Classification: L1 Keywords: Video game, strategy, Blue Ocean, competition, innovation. 1. CPA (Universidad Católica Argentina), MBA (Universidad Torcuato...
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...Blue Ocean Strategy MKT/421 September 1st, 2014 Blue Ocean Strategy The term Blue Ocean is slang for an uncontested market space in a known industry or innovation (Investopedia, 2014). The cell/smart phone industry is constantly looking for new Blue Ocean market space to gain a temporary edge on the competition. Look at how mobile phones have evolved from simply being able to make calls to text, email, cameras, video cameras, mp3 players, internet access, streaming videos, bar code scanners, GPS and voice recognition. One of the new Samsung Galaxy phones even has a feature that pauses movies if the phone senses that you have looked away from the screen. Each company is trying to find the next new thing that no other company is doing in order to stand out from the competition. This is a Blue Ocean strategy. Find an unexploited niche in a market and be the first to market with a product that fills the gap. This is an important strategy since Red Ocean market space, named so for water bloodied by competition in a saturated market (Investopedia, 2014), often leads to companies unable to compete and forced to shut down. Take Blockbuster for example, they had significant market share and seemed to be a solid competitor in the movie rental market. That is until Netflix found a Blue Ocean in mail order rentals with no late fees and streaming video rentals. Blockbuster tried its own mail order rentals and streaming video but they soon had even more competition with...
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...Blue Oceans for Miniclip What is Blue Ocean Strategy? Blue Ocean Strategy is a study conducted by W. Chan Kim and Renée Mauborgne. It was based on 150 strategic moves in business after the in depth analysis of more than 30 different evolving industries over the period of more than 100 years. In a nutshell, the study focuses on achieving the success in businesses not by battling hard with the competitors, but creating new opportunities, discovering new markets and forming new industries. It declares the markets where there is strong competition and rivals are strong and in great numbers, are “Red Oceans”, on the other hand a market or industry which is yet to be born, can be created or discovered is a “Blue Ocean”. A newly created Blue Ocean is not prone to be a quick follow-up by the rivals because the creator of that very Blue Ocean actually knows the nitty-gritties of the infant industry or market. So the creator can reap the benefit for at least a decade before the rivals catch up. How BOS (Blue Ocean strategy) works? BOS comprises of various methodologies, frameworks and practical tools that can help to determine that on what basis a business can extend its boundaries of the existing industry and further it helps to gauge the possible risk, repercussions and benefits as well. Various imperative parts of the BOS are: 1. Strategy Canvas 2. The initial test for BOS 3. Buyer utility map 4. Buyer experience cycle 5. Price corridors of the mass...
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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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...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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...Blue Ocean Strategy Paper Sarah Van Wyk MKT/421 April 19, 2015 Professor Phyllis Levith Blue Ocean Strategy Paper Blue ocean strategy is a business tactic that separates the market into “blue” and “red” oceans. Blue oceans relate to all of the industries that do not currently exist in today’s society. They are the “unknown market space, untainted by competition, where demand is created rather than fought over” (W. Chan Kim, 2004). In direct contrast to this notion are red oceans, which relate to existing markets with substantial competition and where demand is already severely exploited. Further reading will provide the importance of the blue ocean strategy in business, an example of a product that has captured this strategy, and an alternative red ocean scenario for that same product. What is Blue Ocean Strategy? Blue ocean strategy is a fresh way of thinking in the business world. It is an innovative approach that restructures the corporate mentality to focus on carving out new paths for business and industry. Its prime emphasis is to help companies better stand apart from their competition yet still keep costs low and is achieved by following four basic principles. The first is creating uncontested market space, followed by concentrating on the big picture, then reaching beyond existing demand and lastly, mastering the strategic sequence (W. Chan Kim, 2004). With these guidelines, blue ocean strategies capture new demand, make the competition irrelevant, build differentiation...
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...1. How attractive is the video game console industry in 2008? 2. As Sony attempts to regain industry leadership from Nintendo, what lessons should Kuzuo Hirai learn from the history of the video game industry? How has the structural attractiveness of the industry changed over time? 3. What are Sony’s strategic options for regaining industry leadership? As Kazuo Hirai, which option would you pursue? 1. The video games industry is the economic sector involved in the development, manufacturing and selling of electronic gaming devices, software, and accessories. The case study focuses on video game consoles (also known as platforms), electronic systems that are primarily used for playing video games on a TV. In the past decades, the video game industry has become a huge part of the entertainment industry: it started as a small market niche in 1972 and, since then, has rapidly grown from focused markets to mainstream. I chose to use “Porter’s Five Forces” model to better understand the underlying factors influencing the overall attractiveness of the video game industry. Intensity of rivalry: historically, a high level of concentration has characterized the video game industry since the beginning, with few firms dominating the entire market. In 2008, Nintendo, Sony and Microsoft were controlling the majority of the market and the intensity of rivalry was quite low. Having said that, the fight for market shares between these 3 leaders has always been intense even if, thanks...
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...are few success stories of companies that applied their theories in advance. One success story that does exist is Nintendo, who first applied the Blue Ocean Strategy to create the Nintendo DS handheld game system which was the first portable gaming system to offer dual screen gaming and a touch screen in 2004. In 2006, Nintendo released the Wii, which redefined how video games are played by. The 3DS is Nintendo's third endeavour for its blue ocean strategy. Its first two attempts, the Nintendo DS and Wii, were wildly successful, becoming some of the biggest selling platforms in history. Nintendo revealed their Blue Ocean Strategy during an E3 press conference during the hype build-up of the Wii. However with just one case study, this hole in their data persists despite the publication of Value Innovation concepts since 1997. Hence, a critical question is whether this book and its related ideas are descriptive rather than prescriptive.[10] The authors present many examples of successful innovations, and then explain from their Blue Ocean perspective – essentially interpreting success through their lenses.[11] The research process followed by the authors has been criticized[11] on several grounds. Criticisms include claims that no control group was used, that there is no way to know how many companies using a Blue Ocean Strategy failed and the theory is thus unfalsifiable, that a deductive process was not followed, and that the examples in the book were selected to "tell a...
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...Blue Ocean Strategy: Article Summary Abstract The Blue Ocean Strategy (BOS) is a business strategy about capturing uncontested market space, thereby making competition irrelevant. The corner-stone of BOS is 'Value Innovation'. A blue ocean is created when a company achieves value innovation that creates value simultaneously for both the buyer and the company. The innovation (in product, service, or delivery) must raise and create value for the market, while simultaneously reducing or eliminating features or services that are less valued by the current or future market. The "ocean" in the title refers to the market or industry: • Blue Oceans are untapped and uncontested market, which provides little or no competition for anyone who would dive in, since the market is not crowded. • Red Oceans, on the other hand, refers to a saturated market where there are fierce competitions, already crowded with companies providing the same type of services, producing the same kind of goods. The idea is to do something different from everyone else, produce something that no one has yet seen, thereby creating a blue ocean. Blue Ocean Strategy: Article Summary BOS explains that rather than competing within the confines of existing industry or trying to steal customers from rivals (Red Ocean Strategy), uncontested market space should be developed that makes competition irrelevant. Red oceans are all the industries in existence today—the known market space. In the red...
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...authors of BLUE OCEAN STRATEGY 1) What is a blue ocean strategy? Kim & Mauborgne: Blue Ocean Strategy is a way to make the competition irrelevant by creating a leap in value for both the company and its customers. 2) What are red and blue oceans, and why do you use the colors red and blue? Kim & Mauborgne: We use the terms red and blue oceans to describe the market universe. Red oceans are all the industries in existence today—the known market space. In the red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known. Here companies try to outperform their rivals to grab a greater share of existing demand. As the market space gets crowded, prospects for profits and growth are reduced. Products become commodities, and cutthroat competition turns the red ocean bloody. Hence, the term “red” oceans. 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 because the rules of the game are waiting to be set. Blue ocean is an analogy to describe the wider, deeper potential of market space that is not yet explored. Like the “blue” ocean, it is vast, deep, powerful, in terms of profitable growth, and infinite. 3) How does blue ocean strategy fundamentally...
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...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...
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...Blue Ocean Strategy Shovanda Davis MKT/421 July 13, 2015 Nnamdi Osakwe Blue Ocean Strategy Introduction This week we will discuss Blue Ocean Strategy in detail. We will provide a description of blue ocean strategy and its importance. We will also discuss a product or service that might be considered a blue ocean move and why. We will also talk about an alternative red ocean move for the same product or service along with the pros and cons of that strategy. Description of blue ocean strategy and its importance Blue Ocean Strategy is a term that describes how companies customarily work in "red ocean" conditions, where businesses viciously fight against each other for a share of the marketplace. Instead, according to the blue ocean strategy, organizations should find a way to work in a marketplace that is free of competitors (Arline 2015). Blue Ocean Strategy is where leading companies will prosper not by fighting competitors, but by creating "blue oceans" of recognized market space ready for growth (Arline 2015). Blue Ocean Strategy is important because it is easier for many companies to produce more of their product because of technology advances. It is also important to companies to enter the blue ocean to find new opportunities. Blue Ocean Strategy makes the competition irrelevant. Product or service that might be considered a blue ocean move and why There are several products and services that might be considered Blue Ocean. Cirque du Soleil is an example...
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...authors of BLUE OCEAN STRATEGY 1) What is a blue ocean strategy? Kim & Mauborgne: Blue Ocean Strategy is a way to make the competition irrelevant by creating a leap in value for both the company and its customers. 2) What are red and blue oceans, and why do you use the colors red and blue? Kim & Mauborgne: We use the terms red and blue oceans to describe the market universe. Red oceans are all the industries in existence today—the known market space. In the red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known. Here companies try to outperform their rivals to grab a greater share of existing demand. As the market space gets crowded, prospects for profits and growth are reduced. Products become commodities, and cutthroat competition turns the red ocean bloody. Hence, the term “red” oceans. 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 because the rules of the game are waiting to be set. Blue ocean is an analogy to describe the wider, deeper potential of market space that is not yet explored. Like the “blue” ocean, it is vast, deep, powerful, in terms of profitable growth, and infinite. 3) How does blue ocean strategy fundamentally differ from red ocean strategy...
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...Nintendo’s Strategy for the Wii— Good Enough to Beat Xbox 360 and PlayStation 3? 12 C A S E ASSIGNMENT QUESTIONS 1. What are the defi ning business and economic characteristics of the video game console industry? What is the industry like? 2. What is competition like in the video game console industry? Do a fi ve-forces analysis to support your answer. Which of the fi ve competitive forces is strongest? Which is weakest? Would you characterize the overall strength of competition in video game consoles as fi erce, strong, moderate to normal or weak? Why? 3. What forces are driving changes in the video game console industry? Are these driving forces acting to make the industry more or less competitively intense? Are the driving forces acting to make the industry more or less profi table in future years? 4. What 3-5 key factors determine the success of video game console developers like Nintendo? 5. What is Nintendo’s strategy? Which of the fi ve generic strategies discussed in Chapter 5 is Nintendo using? What are some of the recent offensive and/or defensive strategies that Nintendo has employed? Have these tactics been successful? 6. Is it fair to characterize Nintendo’s introduction of the Wii as a blue ocean strategy? Why or why not? 7. How well is Nintendo’s strategy working in terms of the fi nancial performance it is delivering? Should shareholders be pleased? Why or why not? What 2-3 weaknesses do you see in Nintendo’s fi nancial performance? 8. What...
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