Mkt 421 Blue Ocean Strategy Paper
Blue Ocean Strategy Paper
Ingrid Dillard
MKT/421
December 22 2014
Dianna Iobst
Blue Ocean Strategy Paper
Blue Ocean strategy is an opportunity to create new and unique ways in an uncontested market space. This important strategy focuses on making competition irrelevant through creating a new innovative product or service. This paper outlines a product service that is considered a Blue Ocean move and the alternative Red Ocean strategy will also be covered.
Blue Ocean Description and Importance Blue Ocean Strategy is slang for the uncontested, innovative market space for an unknown industry. The strategy also changes the focus from the current competition to creating a new value and demand. Professors W. Chan Kim and Renee Mauborgne wrote the Blue Ocean strategy concept in their book ,”How To Create Uncontested Market Space and Make the Competition Irrelevant”. The Blue Ocean Strategy (BOS) concept represents potential market growth and profits. Within the BOS, there lies six main principles to guide the …show more content…
Red Oceans also defines the prospects determines growth limited and competition is greater. In fact, firms are familiar with red oceans and accustomed to competition where the strongest survives. Other key points are pros and cons of red oceans. The disadvantages of red oceans environments include a more fierce, and crowded market as competitors steal share from one another. To further explain, as companies compete with each other prices are reduced, profits fall, and growth becomes limited (Kim & Maubourgne, 2014). Equally important, managers sometimes fail to recognize the differences between red and blue ocean strategies, which proves harder to break from competition. Comparatively, an advantage of the red ocean is the ability to enter a market already established where the market encourages
Ingrid Dillard
MKT/421
December 22 2014
Dianna Iobst
Blue Ocean Strategy Paper
Blue Ocean strategy is an opportunity to create new and unique ways in an uncontested market space. This important strategy focuses on making competition irrelevant through creating a new innovative product or service. This paper outlines a product service that is considered a Blue Ocean move and the alternative Red Ocean strategy will also be covered.
Blue Ocean Description and Importance Blue Ocean Strategy is slang for the uncontested, innovative market space for an unknown industry. The strategy also changes the focus from the current competition to creating a new value and demand. Professors W. Chan Kim and Renee Mauborgne wrote the Blue Ocean strategy concept in their book ,”How To Create Uncontested Market Space and Make the Competition Irrelevant”. The Blue Ocean Strategy (BOS) concept represents potential market growth and profits. Within the BOS, there lies six main principles to guide the …show more content…
Red Oceans also defines the prospects determines growth limited and competition is greater. In fact, firms are familiar with red oceans and accustomed to competition where the strongest survives. Other key points are pros and cons of red oceans. The disadvantages of red oceans environments include a more fierce, and crowded market as competitors steal share from one another. To further explain, as companies compete with each other prices are reduced, profits fall, and growth becomes limited (Kim & Maubourgne, 2014). Equally important, managers sometimes fail to recognize the differences between red and blue ocean strategies, which proves harder to break from competition. Comparatively, an advantage of the red ocean is the ability to enter a market already established where the market encourages