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Blue Ocean Strategy

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Words 1226
Pages 5
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 the cost lower. The organizations adopting blue ocean strategy can create new market space, create new demands, focus on innovation and avoid competing in existing segment. Thus, this strategy pursues differentiation and low cost, by creating uncontested market space. It minimizes the risk and maximizes the opportunities and is considered as win – win outcome for both company and customers....

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