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Blue Ocean

In: Business and Management

Submitted By Jaime2051
Words 846
Pages 4
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. This empowered merchants to fabricate a widespread collection of goods and services (Schawbel, 2014). Numerous businesses are in distress from accelerated differentiation of goods and services, increased pricing wars and tightening markets. Contending aggressively in these markets results in nothing but a bloody “red ocean” of adversaries combating over a dwindling profit pot. For organizations in both established and developing economies, the growth dispute has become

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