strategy marketing
Team : Hetong Xu; Jin Liu; Jieqi Jin. Blue Ocean Strategy
1. What is a blue ocean strategy? What is a red ocean strategy? Explain these from the perspective of company, competition, costs, and markets.
Blue ocean strategy, as a business method, is about company creating a new market or industry where there is no competitor. Companies play not by traditional rules, never use the competition as a benchmark. They could ether create greater value for customers at a higher cost or create reasonable value at a lower cost. Thus, the name of the program – find a blue ocean, a new ocean to swim in.
Red ocean strategy, as a business method be opposite to blue ocean strategy, is a head to head battle where the players of a particular segment compete with each other remaining in the same market space i.e. within the boundaries of the same industry on the principle of ‘competitive advantage’.
2. The authors allude to the fact that most companies borrow their strategic thinking from military models (see ‘Paradox of strategy’). How does this model affect perceptions related to competition and customers and what are the implications for creating value for markets (and employees!)?
Corporate strategy is heavily influenced by its roots in military strategy. The very language of strategy is deeply imbued with military references—chief executive” officers” in “headquarters”, “troops” on the “front lines”. Described this way, strategy is all about red ocean competition, accept the key constraining factors of war---limited terrain and the need to beat an enemy to succeed. At the same time, red ocean strategy would lead to hyper-competitive work environment, thus, reduce the cohesion of company staff.
3. Using the “Snapshot of the blue ocean creation exhibit, list and explain the key success factors for the three industries (auto, computer, movie theaters ).
Blue Ocean Strategy suggests that an organization should create new demand in an uncontested market space, or a
1. What is a blue ocean strategy? What is a red ocean strategy? Explain these from the perspective of company, competition, costs, and markets.
Blue ocean strategy, as a business method, is about company creating a new market or industry where there is no competitor. Companies play not by traditional rules, never use the competition as a benchmark. They could ether create greater value for customers at a higher cost or create reasonable value at a lower cost. Thus, the name of the program – find a blue ocean, a new ocean to swim in.
Red ocean strategy, as a business method be opposite to blue ocean strategy, is a head to head battle where the players of a particular segment compete with each other remaining in the same market space i.e. within the boundaries of the same industry on the principle of ‘competitive advantage’.
2. The authors allude to the fact that most companies borrow their strategic thinking from military models (see ‘Paradox of strategy’). How does this model affect perceptions related to competition and customers and what are the implications for creating value for markets (and employees!)?
Corporate strategy is heavily influenced by its roots in military strategy. The very language of strategy is deeply imbued with military references—chief executive” officers” in “headquarters”, “troops” on the “front lines”. Described this way, strategy is all about red ocean competition, accept the key constraining factors of war---limited terrain and the need to beat an enemy to succeed. At the same time, red ocean strategy would lead to hyper-competitive work environment, thus, reduce the cohesion of company staff.
3. Using the “Snapshot of the blue ocean creation exhibit, list and explain the key success factors for the three industries (auto, computer, movie theaters ).
Blue Ocean Strategy suggests that an organization should create new demand in an uncontested market space, or a