Blue Ocean Strategy
Blue Ocean Strategy
August 21, 2014
University of Phoenix
Blue ocean strategy is a concept written to question the standard five forces concept of marketing. The idea is to move out of the quote “red ocean” where there are sharks always competing into the “blue ocean” competition of your own where other competition is nonexistent. A red ocean is easily understood since it “represents all the industries in existence today” (Kim & Mauborgne, 2004). Blue ocean focuses on potential, focus less on their competitors and more on alternatives, and focus less on existing customers and more on potential customers. The following will discuss examples of a blue ocean strategy and red ocean strategy and the pros and cons to each. One example of a blue ocean strategy is the Google Project Ara. The Google Project Ara is currently in the process of being made and will be the first totally customizable smartphone. The idea is to solve three problems: obsoleting, waste, and varying consumers’ needs (Molen, 2014). The idea is to create modular phone in which, the smartphone can be upgraded just like your laptop but with more ease. If something were to go wrong like the normal phone problems, cracked screen or work battery for example, it would just be replaced with a new one. In turn this will reduce consumer waste. The consumer will also be able to customize the phone to how they want it. Whether this includes a higher quality lens camera, a larger battery for those who use his or her phone for business throughout the day. Each individual module that is chosen for the phone will be put together to make the phone a whole. Each module will connect to the other working parts through capacitive interconnects, which are essentially wireless pads that are smaller than standard pins (Molen, 2014). This is considered a blue ocean move simply because it has never been done before. Cell phones could have been considered a Blue
August 21, 2014
University of Phoenix
Blue ocean strategy is a concept written to question the standard five forces concept of marketing. The idea is to move out of the quote “red ocean” where there are sharks always competing into the “blue ocean” competition of your own where other competition is nonexistent. A red ocean is easily understood since it “represents all the industries in existence today” (Kim & Mauborgne, 2004). Blue ocean focuses on potential, focus less on their competitors and more on alternatives, and focus less on existing customers and more on potential customers. The following will discuss examples of a blue ocean strategy and red ocean strategy and the pros and cons to each. One example of a blue ocean strategy is the Google Project Ara. The Google Project Ara is currently in the process of being made and will be the first totally customizable smartphone. The idea is to solve three problems: obsoleting, waste, and varying consumers’ needs (Molen, 2014). The idea is to create modular phone in which, the smartphone can be upgraded just like your laptop but with more ease. If something were to go wrong like the normal phone problems, cracked screen or work battery for example, it would just be replaced with a new one. In turn this will reduce consumer waste. The consumer will also be able to customize the phone to how they want it. Whether this includes a higher quality lens camera, a larger battery for those who use his or her phone for business throughout the day. Each individual module that is chosen for the phone will be put together to make the phone a whole. Each module will connect to the other working parts through capacitive interconnects, which are essentially wireless pads that are smaller than standard pins (Molen, 2014). This is considered a blue ocean move simply because it has never been done before. Cell phones could have been considered a Blue