Blue Ocean Strategy

Topics: Blue Ocean Strategy, Marketing, Competition Pages: 5 (903 words) Published: January 27, 2015


Blue Ocean Strategy
Rebecka McCollough
MKT/421
January 21, 2015
Nikki Butler
Blue Ocean Strategy
When thinking about opening a business, you have to look at whether you want to compete in existing markets or create a new market for your product. When you compete in existing markets, you will find many of them are overcrowded and your business will not flourish in this environment. You should want your business to stand out and become profitable, that is what Blue Ocean Strategy encompasses. It is a new way at looking at the market and based on analysis. This strategy is a new type of mindset, a strategic marketing tool and a new way into the future for new businesses. This paper will discuss the Blue Ocean Strategy and its importance; a product or service that might be considered a blue ocean move and why; and an alternative red ocean move for the same product or service along with the pros and cons of that strategy. Blue Ocean Strategy and its Importance

The Blue Ocean Strategy is a new way of thinking about opening a business and the marketplace in which this business will compete. It is a strategic mindset that is bold and new that will open up doors for new business owners. Blue Ocean Strategy is all about opening new markets instead of competing in the current markets. The current markets are flooded with different companies competing amongst each other and not gaining any ground. The Blue Ocean Strategy is developed around the “Four Actions Framework” which poses four questions; Raise, Eliminate, Reduce, and Create. The questions have industries scrutinizing the factors that they compete on. In today’s market the goal is to stand apart from the rest of the competition, yet keeping costs low. While some companies succeed in in today’s market, others will fail because they focus on how to beat the competition. This is called the red ocean where it is often overcrowded and there is no room for a company to grow. If new market spaces are created by upcoming companies, the profit capabilities are much higher. Market spaces can be created by all types of companies and industries which is what the Blue Ocean Strategy is all about. If a company uses market-creating strategies instead of market-competing strategies, the company will be more successful (Blue Ocean Strategy, 2015). The Blue Ocean Strategy is important because it allows companies to step out of the competing business and start looking at new marketplaces and ideas. When too many companies are competing for the same profits, there is no real gain for the company. When supply exceeds demand in a certain industry, companies will need to enter the Blue Ocean to find new opportunities. If a company enters the Blue Ocean and in successful, it will make other businesses want to follow and leave the unattractive industry market behind (Demand Media, Inc., 1999-2015). A Product or Service that Might be Considered a Blue Ocean Move and Why

Apple is a product that was considered a blue ocean move for their company. When Apple entered into the personal computer market, they were not very successful. Apple then came out with the iPhone, iPad, and iPod and was very successful (Demand Media, Inc., 1999-2015). They stepped out of the competition market for personal computers and entered a market that they made all their own with little to no competition. This example is a success story of a company entering into the blue ocean and succeeding. Another example of this is Netflix, they Dominate the industry for online watching of movies and TV shows. Netflix has no real competitors and they are able to keep their costs low which appeals to consumers. An Alternative Red Ocean Move for the Same Product Along with the Pros and Cons of that Strategy

If Apple made an alternative red ocean move on there “I” products, it could be productive and hurtful to their company. When Apple enters the red ocean, they would be competing against...

References: Blue Ocean Strategy. (2015). Overview of blue ocean strategy. Retrieved from
http://www.blueoceanstrategy.com/overview/
Demand Media, Inc.. (1999-2015). Importance of the blue ocean strategy to a business.
Retrieved from http://www.ehow.com/info_7743376_importance-blue-ocean-strategy-
business.html
WordPress. (n.d.). Blue ocean strategy: making the ‘competition irrelevant’ by ‘creating
uncontested market space’. Retrieved from http://bizshifts-
trends.com/2011/06/01/%E2%80%9Cblue-ocean-strategy%E2%80%9D-making-the-
%E2%80%98competition-irrelevant%E2%80%99-by-%E2%80%98creating-
uncontested-market-space%E2%80%99/
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • MKT421 Blue Ocean Strategy Paper
  • Competitive Strategy vs Value Innovation Essay
  • Blue Ocean Strategy Paper
  • blue ocean strategy Essay
  • blue ocean strategy Essay
  • Blue Ocean Strategy Paper
  • Essay on Blue Ocean Strategy
  • Essay about Blue Ocean Strategy Criticism

Become a StudyMode Member

Sign Up - It's Free