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Blue Ocean Thinking

In: Business and Management

Submitted By osocat
Words 1094
Pages 5
Blue Ocean Thinking
NAME
MKT/421
October 30, 2013
INSTRUCTOR

Blue Ocean Thinking
Introduction
Blue Ocean Strategy is a fairly new marketing concept developed by W. Chan Kim and Renée Mauborgne. In this marketing concept there are two separate portions of the market, red oceans and blue oceans. This separation is very important to understand and must be discussed in-depth. This will be followed by an introduction to Chrysler Group LLC, which consists of Dodge, Chrysler, Jeep and Fiat. However, there will be a focus on Fiat and Dodge as they have two small compact vehicles that appeal to a niche market. Blue ocean strategy can change where Chrysler Group LLC stands in the automotive industry and make for a much more profitable organization.
Red Oceans Versus Blue Oceans
Red oceans and blue oceans are extremely important to understand, otherwise the whole Blue Ocean Strategy would not make any sense. Red oceans is where competition is fierce between competitors trying to make their product stand out the most by differentiation or price. Red oceans also consists of all competitors trying to take advantage of demand that exists in their market. Blue oceans are completely opposite with the largest focus being on making the competition irrelevant. Blue oceans also focus on creating new demand instead of competing for it, which results in the creation of unchallenged market space ("Blue Ocean Strategy", 2012).
Chrysler Group LLC
Chrysler Group LLC is one of the U.S. automotive industries leaders which is comprised of the Dodge, Chrysler, Jeep and Fiat brands. This industry is very competitive with the Ford Motor Company and General Motors leading the pack. It is obvious that all three of the companies are competing for the same market share and sharing a piece of the demand that exists from consumers. Competition is especially fierce at this time…...

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