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Blue ocean strategy is importance because it is based on innovation and differentiation. However, these factors are not applied to products and services, but to market space. Essentially, blue ocean strategy requires finding one's own niche market space which is at variation with that of industry standards. It requires a company to find ways in which it can effectively create its own space in which competition is minimal or unimportant and, based on the products and services it provides, is a relatively unique way of providing those things to customers. In fact, the focus of a blue ocean strategy is one in which organizations do not focus on existing customers, but rather focus on potential customers and a customer base that is different from its current one. Similarly, the focus is not so much on competitors and keeping up with others as it is in finding alternative ways to create new markets in which there are no competitors (Murray, no date). In this respect, blue ocean strategy is of marked importance because...
It is decidedly less competitive than traditional red ocean strategy (in which the waters of the industry are 'stained' with organizations all competing with one another for the same customer by providing the same form of products and services) (Kim and Mauborgne, 2004, p. 77), and represents a fundamental paradigm shift in priorities for business strategy.
One of the best examples of a blue ocean move related to a particular product or service is the rise of Netflix. Netflix single-handedly redefined the video rental market which, at the time of Netflix's ascendancy, was largely run by nationwide retail conglomerates such as Blockbuster and Hollywood Video, which had succeeded in ousting most mom and pop shops from the industry in conventional red ocean fashion. Netflix, however, was able to create its own niche market by offering video rentals over the internet. Even prior to revolutionizing the video rental…
References
Kim, W., & Mauborgne, R. (2004). Blue Ocean Strategy. Harvard Business Review. 82(10), 76-84.
Murray, A. (2010). What is blue ocean strategy? The Wall Street Journal. Retrieved from http://guides.wsj.com/management/strategy/what-is-blue-ocean-strategy/
Blue Ocean Strategy (BOS) is a new concept in strategic management, introduced by Professor W. Chan Kim and Renee Mauborgne in 2004. After doing detailed research, Kim and Mouborgne found out that most of the companies rely on the market segmentation and price competition for attracting customers. This results in increasing costs, decreasing rewards and creating a Red Ocean where all competitors compete together. Therefore, in order to maintain the
Ebay: a blue ocean industry eBay -- a Blue Ocean Industry In 1995, the same year that Craigslist was born as a mailing list for announcing local events, Auction Web entered a market without competitors. A software engineer by trade, company Chairman Pierre Omidyar wanted to create a simple system for online trading of goods ("Meg," 2005). His wife, who had an interest in trading Pez candy dispensers, was one of the
Red & Blue Ocean' Industries Red and Blue Ocean Industries: Quick Service Restaurant Industry Location, location, location. This is the mantra of retailers who depend highly on getting the best location as the key to increasing the presence (both physical and perceived presence) of the business, brand, and product or service to the consumer's psyche. This is especially applicable in the case of the fast food or quick service restaurant industry.
Creating a Blue Ocean for a Socialause The strategy applied by the company related to the execution of visionary and shaping strategies in new and unchartered waters of addressing a social issue in Hong Kong using technology. In the article, data provided shows that the pilot project of WebOrganic sought to ensure that the students from underprivileged backgrounds could access to the Internet and computers. Therefore, on the attainment of its
Strategy Concepts -- From Planning Through Analysis and Implementation The Concept of Strategy Strategy is about change and response to change. Competitive strategy cannot stand still (Eisenhardt, 2002). Competitive strategy must establish differentiation (Kim & Mauborgne, 2004). Strategy appears most difficult from the inside of a business as perspective taking is based on what the competition is doing, might do, might do in response to what other businesses do, and so forth
Question 1 The philosophy of marketing—or wisdom of marketing—that is personal to me is based on my sense of what marketing is meant to do: the objective is to connect with the consumer and make a product or service appeal to that consumer so that he or she wishes to consume it. The biggest element of marketing philosophy for me is Imagination. Imagination is the most vital tool in marketing because this