Blue and Red Ocean Strategy Paper

Topics: Blue Ocean Strategy, Ocean, Guitar Pages: 5 (782 words) Published: April 20, 2015


Blue Ocean Strategy Paper 
Karina Visloukh 
Marketing/421 
April 13, 2015 
Creig Foster

Blue Ocean Strategy Paper 
The Blue Ocean Strategy  
In blue ocean strategy the demand is created instead of fought over. The rules are not is well defined and the opportunity for the profitable growth exists. The competition is made irrelevant. The blue ocean strategy breaks the value-cost trade off. Value innovation is the cornerstone of the blue ocean strategy. Value innovation is innovation is more than innovation. It is about strategy that embraces the entire system of a company’s activities (Blue Ocean Strategy Kenya, 2015). According to the Harvard Business article "Competing in overcrowded industries is no way to sustain high performance. The real opportunity is to create blue oceans of uncontested market space (Kim & Maumborgne, 2004).   The Red Ocean Strategy  

In contrast, the red blue ocean strategy the ocean becomes bloody because of the overcrowded competition in market. The rules and boundaries are well established and agreed. The demand is not created like in the blue ocean strategy, instead companies are fighting for the bigger market share within their industry. The blue ocean can be created in the red ocean as well.   Creation of the Blue Ocean within the Red Ocean  

For example, if a company is able to bend the existing boundaries within the red ocean, the new demand can be created. As a specific example to demonstrate how the red ocean can become blue, I would like to talk about folding guitar. The folding travel guitar was invented by two individuals, who made sure to patent their unique mechanism that allows to fold the guitar, while not interfering with how it has been tuned. This allows people to have more comfortable travel with their instrument. This is the demonstration how something was created to change the already existing way of owning a guitar.   The Voyage air guitar can be the only player in the music industry market, unless they will license their patented mechanism and will invite other companies to use their way of making guitars. On one hand, it might be profitable to license, however, the Voyage company is relatively small, which means that the companies in the music industry that have a greater market share, might actually take away all the sales from the Voyage company. This would put the Voyage out of the business, even though they might still be receiving the money from the licensing, depends on the contract they have created.    Overview and Examples 

Even though it is relatively new terminology, the red and blue ocean strategy was existing for quite some time. Just to think about the fact that in technology, people are able to purchase 3D televisions for their personal use, when just few decades all we had is black and white movies without the sound, but the captions. The cell phones were as big a suitcase, but know it is touch screen and weights almost nothing. More and more companies are racing against each other with lightning speed to introduce better than their competitors product and services. Unfortunately, there are still many companies which were able to achieve greater market share, such as Time Warner Cable, are still struggling with some services that can be easily fixed. Such example would be lagging customer service can be easily fixed by recruiting better employees or providing effective training.   Thoughts and Conclusion 

I found it to be very interesting that automobile industry was very unattractive and was considered that the person simply want to show the "arrogance of wealth." Mr. Ford was able to learn and understand the attitude of people about the cars and their needs at that time. He attracted people to his Model T because it was simple and affordable. This way he was able to change the attitude people had about owning a car. This is very important for many companies and new businesses to understand if the business wants to be successful....
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