Blue Ocean Strategy
BLUE OCEAN STRATEGY – ARTICLE CRITIQUE
Blue Ocean is a strategy that is used to enter new and unexploited markets by creating new demand and thereby earning a high level of profits. This strategy helps a company in entering a market where there is no competition. This helps any company to assert the whole market as its own as there are no others to compete with. This is a big advantage of blue ocean strategy and enables a company to make higher level of profits as compared to it being in the red ocean, where the market is highly packed with competitors.
Environment Changes - Would the same company implementing the blue ocean strategy remain blue and control over the unused market space when the environment conditions change. This tends to be a problem because blue ocean strategy may work only when the conditions are dynamic. When it tends to become static and competitive and when new companies enter the blue ocean space, it may not work and becomes a red ocean where the conflict over competition begins.
No fixed continuity - Blue ocean strategy is mainly concerned with creating certain value for the product by removing unwanted features from the product that the market will not really care about. To expand on this topic, even the company Sun Cellular, Mobile phone company, used the blue ocean strategy to enter new market just like Casella Wines. Since the mobile phone market was already saturated by other well known companies, Sun Cellular created a new market by making sun to sun calls free. This market at that time was untapped. Sun Cellular isn’t competing directly with its competitors instead it just raised the awareness of the people into buying into this new market; making competition irrelevant. But despite the above fact, Sun Cellular had to finally end up in the red ocean of heavy competition as newer companies entered the same field of free calls and dual sim card system. Hence, continuity of any particular company in the blue ocean is impossible
Blue Ocean is a strategy that is used to enter new and unexploited markets by creating new demand and thereby earning a high level of profits. This strategy helps a company in entering a market where there is no competition. This helps any company to assert the whole market as its own as there are no others to compete with. This is a big advantage of blue ocean strategy and enables a company to make higher level of profits as compared to it being in the red ocean, where the market is highly packed with competitors.
Environment Changes - Would the same company implementing the blue ocean strategy remain blue and control over the unused market space when the environment conditions change. This tends to be a problem because blue ocean strategy may work only when the conditions are dynamic. When it tends to become static and competitive and when new companies enter the blue ocean space, it may not work and becomes a red ocean where the conflict over competition begins.
No fixed continuity - Blue ocean strategy is mainly concerned with creating certain value for the product by removing unwanted features from the product that the market will not really care about. To expand on this topic, even the company Sun Cellular, Mobile phone company, used the blue ocean strategy to enter new market just like Casella Wines. Since the mobile phone market was already saturated by other well known companies, Sun Cellular created a new market by making sun to sun calls free. This market at that time was untapped. Sun Cellular isn’t competing directly with its competitors instead it just raised the awareness of the people into buying into this new market; making competition irrelevant. But despite the above fact, Sun Cellular had to finally end up in the red ocean of heavy competition as newer companies entered the same field of free calls and dual sim card system. Hence, continuity of any particular company in the blue ocean is impossible