...Blue Ocean Strategy Paper 01/05/15 MKT/421 Blue Ocean Strategy – Introduction When a company is about to enter the market, they typically spend their time trying to create a strategy to overcome their competitors that already exist in the market. In the book Blue Ocean Strategy authors W. Chan Kim and Renée Maugorgne explain how to create your own blue ocean. A blue ocean is the complete opposite of the existing red oceans in the market that quickly drown a new company before they can gain success. Basing their studies on 150 strategic business moves that stretch over 300 years and 30 different industries. Kim and Mauborgne express the importance of 6 principles a company needs in order to create their own blue ocean. The six principles show how to reconstruct market boundaries, focus on the big picture, reach beyond existing demand, get the strategic sequence right, overcome organizational hurdles, and build execution into strategy (Blue Ocean Strategy, 2014). What is Blue Ocean Strategy in Marketing? The Blue Ocean Strategy is essentially creating your own unique market where you have absolutely no competitors therefore creating your own demand from consumers. This strategy is important because it has been proven to be wildly successful and is trending in all types of industries, meaning this strategy isn’t going away and it is a proven strategy, especially in the ever changing and expanding tech industry. In a ‘blue ocean’ a company doesn’t need strategize on...
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...Introduction The blue ocean strategy in the environment of marketing is an extraordinary way to embark on creating a monopolistic customer base. It describes how the blue ocean strategy looks to find ways to build a new market segment that has no current existing businesses and without competing in a crowded marketplace with existing companies. As new technological innovations emerge daily, blue ocean strategy is rapidly growing. The paper will intel the characteristics of the blue ocean strategy while providing ideas of how to employ them into the business environment. Description and Importance of Blue Ocean Strategy Blue Ocean Strategy is a non-fiction business book written in 2005 by W. Chan Kim and Renee Mauborgne. Kim and Mauborgne sought to find a more vigorous strategy approach than Harvard Professor Michael Porter’s “five forces”. They argued that Professor Porter’s strategy would have businesses remaining in the “red ocean” where there’s heavy competition and a very crowded marketplace. The importance of the Blue Ocean Strategy is to encourage existing business customers to move from the red ocean which is characterized as a bloody, shark infested waters competition marketing environment to the blue ocean waters than has no competitors and ample amount of space to evolve new beginnings. Kim and Mauborgne used the Cirque du Soleil as an example of how the Blue Ocean Strategy can be successful. “Despite a long-term decline in the circus industry, Cirque du Soleil...
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...Blue Ocean Strategy MKT/421 29 July 2014 Blue Ocean Strategy The Blue Ocean Strategy is a phase started by two professors by the writing of their book in 2005. Those two professors were W. Chan Kim and Renee Mauborgne. The term simply means the market is essentially wide open like a blue ocean. In a blue ocean market a company basically has no competition or operates in an uncontested market. This essentially is trying to make a monopolistic market. This is the opposite of the Red Ocean market. The red ocean market receive its name saying that the ocean is red with the blood of all the competitors that have failed. In a red ocean market, the market is so saturated with competition that competitors cannot make and eventually fail. This may sound like a bad market to be in, however believe it or not there can actually be advantages as well. The major advantage of a red ocean market would be for the consumers. A market that is saturated would offer more options and choices for consumers, thus making companies be competitive with their prices. An advantage for the companies in the red ocean market would be that it is often a very easy market to enter. This is because the market is already established and a new company can simple copy an existing business with in the market. In a blue ocean market entering is the hard part. This is often done by creating a new product or technology, which is not easy nor cheap. However, once in a blue ocean market it is very...
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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 Paper February 2, 2015 MKT/421 Ellen Carter Within the world of business it can be considered a battlefield. Companies in the same industry are in constant battle with each other. They are competing every day for the same customers, trying to outwit the other with every move they make. This strategic way of business is referred to as the red ocean strategy. Companies focus on building advantages over their competition, taking whatever a competitor does and attempting to do it better. While this has worked for companies for over one hundred years, it is becoming more difficult for companies to distinguish themselves from one another in their respective industry. For example, Colgate and Crest have lost their core customers over the years, now the only way for one to out sale the other is to drop the price. With this happening, the vision for profits and growth is becoming immensely blurred. Imagine if a company lived beyond these boundaries, or outside of this battlefield. One would be able to capitalize on the abundance of opportunity to grow. There have been numerous innovators who have succeeded at restructuring an industry, or creating a completely different industry. This business strategy is considered the blue ocean strategy. Blue Ocean refers to the unchartered waters that companies have yet to explore. Companies practicing the blue ocean strategy attempt to create demand for a product instead of focusing on the supply of a product. If one...
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...Blue Ocean Strategy MKT/421 Blue Ocean Strategy The blue ocean strategy in marketing is a original tactic to establishing a consumer base. Instead of competing in a congested marketplace with prevailing establishments, a blue ocean strategy aims to form an original market segment that has no other present companies, or, in other words, finds or is able to create a target market with no competition at all. Since technology and globalization is ever changing or ever evolving, the significance of a blue ocean scheme has strengthened in the last recent years. Below, the thorough passage analyzes the blue ocean strategy and suggests recommendations to employ the tactic in the modern business environment. Companies depend on market researchers to consider the four Ps of marketing when developing a new product. The four Ps consist of product, placement, price and promotion. To compete with competition successfully, it is crucial to provide potential customers a certain value to stand out from the competition. For instance, a company can proposition a product at a lesser price or at a superior quality then that of a present competitor in the market. However, it is possible that a competitor can be unavoidable or undefeatable in any given market; moreover, the antidote for the situation previously stated is the blue ocean strategy. Blue ocean strategies have worked in real-world business situations, exceptionally in the technology industry. For example, Samsung released...
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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 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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...MKT 421 Week 4 Blue Ocean Strategy Paper Blue Ocean Strategy - Introduction The blue ocean strategy in marketing is a unique approach to building a customer base. Rather than try to compete in a crowded marketplace with existing companies, a blue ocean strategy looks to build an entirely new market segment that has not other existing firms. With the rapid growth of technology and globalization, the importance of a blue ocean strategy has grown in recent years. The following essay will analyze the blue ocean strategy and offer suggestions on how it can be employed in the modern business environment. What is a Blue Ocean Strategy in Marketing? Companies must consider the four Ps of marketing when developing a new offering, which include product, placement, price, and promotion. In order to compete successfully, it is necessary to give consumers a certain value proposition. For example, a firm can offer a product at a lower price or at a higher quality than what is presently offered by other firms. But what if a firm could avoid having to deal with competition altogether? This is exactly what the blue ocean strategy attempts to do – create a new marketplace that is free of competitors. Marketers build an entirely new product or service that is currently unknown to consumers. It is necessary to thoroughly educate the public about the new product in order to gain interest and confidence. Once this has been completed, the new product will be positioned in point that provides...
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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 Strategies MKT 421 February 2, 2015 Strategy and Positiong Paper for StressLess: A Fitbit Product What is innovation? By definition, it is a new method, or idea that revolutionizes the current standard. Innovation is paramount to success in a competitive market. A company can choose innovation in the current market, or use a red ocean strategy. This strategy is to take a current product or process and improve upon it. Another option businesses have is to endeavor for a blue ocean strategy: the strategy of creating a new market. A blue ocean strategy takes the market to a new level. A new product, or a new business is invented in a blue ocean strategy. Blue ocean strategies are vital in the business cycle, as the blue ocean represents the new, uncharted territories in business. Without blue ocean strategies, society would never make advance leaps in technology. The world would have received the cotton gin, as it was an improvement on a current tool. But would the world have received the printing press? The computer? The wheel? Currently, society is in a technological upswing. Blue ocean strategy moves were common when technology was evolving into the common, household use that it experiences now. With technology becoming so common, the red ocean strategy has taken over the blue ocean strategy seen previously. Blue ocean strategies are being seen more in societal and cultural convenience rather than mechanical devices. While it is expected that a blue ocean move...
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...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...
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...Blue Ocean Strategy Shawn Good MKT/421 August 18, 2014 Mark McClintock Blue Ocean Strategy If a company wants to be an overachiever, sometimes a company needs to venture out in untested waters to see what can happen with a product or service it will offer. Companies can find out if what they are offering will be successful or not, instead of being complacent in companies doing the same thing. There are two strategies to companies doing something new called blue ocean strategy. Or the strategy of doing the same thing over and over called red Ocean strategy. Blue Ocean Strategy Blue ocean strategy can be defined as “the unknown market space, untainted by competition” (Kim & Mauborgne, 2004). Blue oceans are started in two ways, one being a company starting a new industry that has yet to be tapped. The second way is when a company looks at how to improve or alter the product in the current industry. Blue ocean strategy is important to any company in any industry. Using blue ocean strategy will allow the company to remain viable and to keep their customer base energized by the product they offer. Blue ocean strategy allows the companies to look at the possibility of recreating themselves which could lead to new customers and improved profits. It allows companies to look at the big picture instead of having the blinders only to see directly in front of them instead of around them. Example of a Blue Ocean Product or Service A product example that falls...
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...Blue Ocean Strategy Shakira Mays MKT\421 Anissa Upshaw July 28, 2014 Blue Ocean Strategy When starting a business, there are several factors that an organization must consider. These factors include the type of product or service they would like to offer, the target market, as well as the price. New organization or organization is trying to recreate themselves also need to think about their competition. Competitors are the driving force for any organization; each company must one up the other in order to win the demand of consumers. When competition is too strong then, organizations must think outside the box and come up with new innovative ideas. There are several strategies that companies can use when making decisions about new products and services; this essay will look at the blue ocean strategy. The essay will describe the blue ocean strategy, its importance, a product that is a blue ocean move, and explanation of the product. The consideration of a red ocean move for the product will be done, as well as the pro and cons of the red ocean strategy. Blue Ocean Strategy Blue ocean strategy is a strategic move that organizations or individuals use to create new product or ideas. The strategy can transform a current product or idea or create something total new. Blue ocean strategy is innovative, and it creates a new market instead of fitting into the current market. By doing this company, does not have to compete because there are no competitors. According...
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...Blue Ocean Strategy Oluwatosin Odunlami MKT/421 December 11, 2014 Marc Lyncheski Blue ocean strategy can be described as an approach taken by an organization in order to develop a solid customer service. When an organization do this, it gives them an opportunity to avoid a crowded market place that is filled up with competition by various existing companies, when a company comes up to build a new market division that does not consist of any other existing businesses is also a blue ocean strategy. Blue ocean strategy has developed so fast in recent years because companies and businesses are moving fast into new globalization, networking and technology. The importance of blue ocean strategy could be met by every organization by putting into consideration the four Ps of marketing which are; price, promotion, product and placement. However, it is very important in any business organization to give consumers a valued proposal. For example, a company can decide to sell their goods at a reduced price or at the best quality than what other companies has to offer. Blue ocean strategy is when an organization is working so hard in introducing a new market environment which will be free for different competitors. The public sector needs to be coached thoroughly about new product so that businesses can gain their confidence. As soon as all these is achieved the new product can then be placed properly with no alternatives...
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