...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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...Blue Ocean Strategy Danny Speed MKT/421 23 June 2014 Stephen Grothe Blue Ocean Strategy There are many different strategies in the market today that assist a company with getting ahead of the competition. Blue and red ocean strategies are important in this regard. A company can utilize the objectives outlined in these strategies to exceed their own expectations, as well as those of their competitors. One way to differentiate between the two strategies is that using blue ocean strategy, the ocean is nice, calm and blue; while, when using red ocean strategy, the ocean is rough and red with the blood from fierce competition. Blue ocean strategy has been around for hundreds of years, even if people didn’t realize it at the time. During the industrial revolution, nearly every product coming out was new and innovative for that period of time. Essentially, every product coming out was following blue ocean strategy. Blue oceans occur when the product being introduced to the market have no direct competition; which, is a much easier way for a new company to enter the market. When entering a red ocean strategy, a new company will have a good amount of trouble competing with already established companies and products. It is very easy for blue oceans to turn red once other companies see the profitability of a certain product and try and join that particular market. The goal in a blue market is for a company to create a product and customer following that will make any...
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...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...
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...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. ...
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...Blue Ocean Strategy Paper The blue ocean strategy in marketing is a business theory that helps search for ways to gain uncontested market space, this is seen as a unique approach to building a customer base. The following essay will analyze the blue ocean strategy and its importance, while providing a product or service that might be considered a blue ocean strategy. Lastly, an alternative red ocean move for the same product or service along with the pros and cons of that strategy will be discussed. Blue Ocean Strategy was developed by W. Chan Kim and Renee Mauborgne. “It describes how companies traditionally 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.” ("Blue Ocean Strategy", 2015). The purpose of the Blue Ocean strategy is to create an uncontested market place while making the competition irrelevant. By doing so this creates and captures new demands and breaks the value-cost trade off. In result, this aligns the whole system of a business’s activities in pursuit of differentiation and low cost. This strategy is important for businesses because in order to make your competition irrelevant, you must leave the red ocean and go to the blue ocean. Once in the blue ocean, you only need to create demand for your product or service. Examples of Blue Ocean Moves There are...
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...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...
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...Blue Ocean Strategy MKT/421 Ken Metz May 5, 2015 Britney Jefferson The Blue Ocean Strategy were defined by professors W. Chan Kim and Renee Mauborgne. They wrote a book about The Blue Ocean Strategy back in 2005. The Blue Ocean Strategy involves the description of how the organization should try and proceed to find some way to work in the market place that is not bullied by the competition and also that is free of competitors. The blue ocean includes 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 potential industries take shape. Blue oceans can be brought into existence in two primary ways. One, as a completely new, unheard of industry can be created from within the red ocean by manipulating the functioning boundaries of an existing industry therein. (Chatterjee, 2014). Blue Ocean Strategy creates uncontested market space, make the competition irrelevant, create & capture new demand, break the value cost trade off, and simultaneous pursuit strategy of differentiation and low cost. The Blue Ocean strategy is quite important. This is because it allows some business to sell its products with no or little competition from other firms. It is also significant for some new business that does not have enough money for advertising and does not want to sell its products in some market where other industries have already established strong brands. According to Professor...
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...Blue Ocean Strategy Melissa Keck June 5, 2014 MKT421 Dr. Linda Murawski Blue Ocean Strategy Competing in overcrowded industries such as technology is no way to sustain high performance. The real opportunity is to create blue oceans of uncontested market space. The Apple Ipad and Kindle Fire would be considered Blue Ocean products as oppose to Red Ocean products. Apple achieved a worthy invention by designing the Ipad, which led to the creation of a new market space. Apple intrigued consumers with the limits of the space by educating customers on its comprehensible use. Amazon introducing the Kindle Fire shortly after the Ipad which targeted non-Ipad users and defined its own name by developing the Kindle Fire as a media savvy device with prominent features enabled by Amazon’s massive media platform. Both of these similar but distinctive products made the competition irrelevant. According to Kim and Mouborgne (2004), “Blue Ocean strategy is simply creating an uncontested market space and defining its boundaries rather than competing in the confines of an existing industry”. As the space for products get more and more crowded, projections for profits and growth are condensed. Blue oceans represent all the industries not in existence today in the unidentified market space, untainted by competition (Kim and Mouborgne, 2004). In blue oceans, demand is created rather than fought over. There is sufficient opportunity for growth that is both profitable and prompt. Companies...
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...Tiffany Betz Blue Ocean Strategy MKT 421 Professor Creig Foster September 22, 2014 Blue Ocean Strategy Blue ocean strategy is about reinventing rather than competing with others in the same industry. “Blue oceans 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” (Kim, & Mauborgne, 2004). The blue ocean strategy opens opportunities for organizations, reduces competition and creates a part from traditional models. If organizations strived to be different, offer different items and innovative ideas, there would be less bloodshed in the world of corporation competition. One real issue, is that there is an incredible amount of organizations working to create and sell products to consumers. Eventually, the ever growing companies and surplus of supplies will steadily lower the demand. When corporations create similar items to the competition, consumers lose sight of product differences. This is because the competition gets so intense, that the products begin to mirror each other. Since companies are not creating two unique products to choose from, consumers base their decisions on price. These similarities also denote branding and force companies into price slashing, which reduces overall profits and gain. Chinet As I comb the isles of my local grocery store for birthday party supplies, I cannot help but wonder why all of these items are sold individually...
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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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...Blue Ocean Strategy Summary by Jay Robinson Source: Blue Ocean Strategy by W. Chan Kim & Renée Mauborgne Red Ocean: Companies compete for customers Chapter 1 Blue Ocean: Company creates new market Chapter 1 Value Innovation Decrease costs GOAL Increase value to consumer Chapter 2 Analytical Tools and Frameworks • Strategy Canvas • Four Actions Framework • Eliminate-Reduce-Raise-Create Grid 3 Characteristics of Blue Ocean Strategy 1. Focus 2. Divergence 3. Compelling Tag line Chapter 2 Strategy Canvas V a l u e Variables Chapter 2 Four Actions Framework Reduce factors below the standard Eliminate factors taken for granted New Value Curve Create factors never before offered Raise factors well below the standard Chapter 2 Eliminate-Reduce-Raise-Create Eliminate Raise • • • Reduce • • • Create • • • Chapter 2 • • • Reconstruct Market Boundaries Look Across Alternative Industries Look Across Strategic Groups Within Industries Look Across the Chain of Buyers Look Across Complementary Product and Service Offerings Look Across Functional or Emotional Appeal to Buyers Look Across Time Chapter 3 Visualize Strategy Visual Awakening; See where you are Visual Exploration; See how others see you Visual Strategy Fair; See where you could be Visual Communication; Draw a Map for everyone (Pioneer-Migrator-Settler Map) Chapter 4 3 Tiers of Noncustomers 3rd Tier 2nd Tier 1st Tier Your Market Chapter...
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...Blue Ocean Strategy MKT/421 Blue Ocean Strategy Blue Ocean Strategy is a book written by W. Chan Kim and Renee Mauborgne. It describes how organizations should try to find a way to work in a market place that has not a lot of competition. The authors write about how main companies can succeed without battling competition. The company will succeed by creating a “blue ocean” market space ripe for growth. The strategy behind Blue Ocean is to find differentiation. Theoretically it helped a company not to outperform the competition but to create a new market space. This makes the competition irrelevant. Blue Ocean Strategy is important to businesses who want to sell their product with little or no competition and is useful for new businesses that have little or no money. Netflix came out in 1999 and is an online DVD rental service whose strategy and market success were predicted on providing an expansive selection of DVDs, an easy way to choose movies, and fast, free delivery via postal mail. The company’s strategic intent was to be the world’s largest and most influential movie supplier. The goal of the company was to make it a lot easier for customers to select and rent movies and to eliminate the hassles involved in picking up and returning them. Its strategy incorporates customer convenience and a wide selection of entertainment selections. Netflix provides extensive information to its customers to help them make good selections and identify films that they may like to...
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...Name Tutor Module Date Blue Ocean Strategy There are two types of business environments; there are those with defined and accepted industry boundaries that encourage competition for the same market hence demand and supply forces determine market prices for commodities. These are referred to red oceans because the increased competition in the market bloodies the water. By contrast, there are those unknown and undefined market spaces, where demand is created and businesses supply a completely new or reinvented product. These are the blue ocean industries. Blue oceans can be created by either supplying a new product or service, or from an existing red ocean business that breaks the industry boundaries. The red ocean industry is crowded with businesses that are competing against one another, with the main strategy being the competitive edge a business will have over the other. However, this is not sustainable because the demand markets keep shrinking; increased suppliers that provide a variety of goods and services push prices lower, and trade barriers that inhibit business. As such, there is need to implement the blue ocean strategy to create new markets. This can be achieved by reinventing and recreating existing technology within the red oceans and creating a new demand in a non- competitive market space. Furthermore, the business needs to find a balance between providing a differentiated product or service at a low cost. The trade- off between value of the product and...
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...Introduction Blue Ocean strategy describes how organization should try and find a way to work in a marketplace that isn’t full of competition and not full of competitors. It is important to understand the importance of the blue ocean strategy. By being able to understand the importance of the blue ocean strategy, I can then identify a product or service that would be considered a blue ocean move. Since there is an opposite strategy of the blue ocean strategy called a red ocean move, it is important to explore a move for this strategy and analyze pros and con of the red ocean move. What is the Blue Ocean Strategy? The term blue ocean is rather new, although it is a strategy that has been with us as long as selling something for profit has. The blue ocean strategy is to come out with a new industry or service that has no competitors that way there are no factors in the way of success other than making a good product that people are going to want to be. For example, in the late 1800’s and early 1900’s, Karl Benz opened up the industry for automobiles by creating the first modern and gasoline automobile. (Liberty of Congress, 2011) Karl Benz ran the idea of an automobile hoping people would find value in it. No one else was doing anything like this, so Karl Benz pretty much created the industry, thus using the blue ocean strategy. I believe the blue ocean strategy is giving this name because it clear and free of pollutants. In the situation, the pollutants would be other competitors...
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...Blue Ocean Strategy MKT 421 Name Date Instructor Blue Ocean Strategy Description and Significance According to Cham Kim and Renee Mauborgne (2004), the Blue Ocean strategy involves the description of how the organization should try and proceed to find some way to work in the marketplace that is not bloodied by the competition and also that is free of competitors. The strategy is against working in conditions such as Red Ocean, where businesses are ferociously fighting each other for some share of the marketplace. In essence, businesses are most often looking for ways that can better contend with their competitors, and that is the Blue Ocean strategy. According to the book Blue Ocean Strategy, the leading companies succeed not by battling with competitors, but by systematically developing “Blue Oceans” of uncontested market space ripe for the growth. Such a strategy of Blue Oceans the simultaneous pursuit of differentiation and also low cost, including the theory behind it not to outperform the competition in the on-hand industry, but to develop new market space or rather the “Blue Ocean”, in which case it makes the competition irrelevant. (Brooks, 2013) As such, the Blue Ocean strategy illustrates the opportunities of vast and untapped market spaces (Kim & Mauborgne, 2004) The Blue Ocean strategy is quite important. This is because it allows some business to sell its products with no or little competition from other firms. It is...
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