Blue Ocean Strategy Paper

Topics: Blue Ocean Strategy, Richard Dreyfuss, Strategy Pages: 2 (1082 words) Published: November 1, 2014

Blue Ocean Strategy Paper
XXXXXXXX
MKT 42110/13/2014
Mr. Boswell
Blue Ocean Strategy Paper
There has been a lot of discussion and consideration when it comes to the red or blue ocean approach to marketing strategies for businesses both already established and newly founded. Red oceans refer to the known market space – all the industries in existence today. In red oceans, industry boundaries are clearly delineated and accepted, and the competitive rules of the game are known. Companies try to outperform their rivals to grab a greater share of existing demand, usually through marginal changes in offering level and price. As the market space gets crowded, prospects for profits and growth are reduced products become commodities, and cut-throat competition turns the red ocean bloody. On the other hand, the blue ocean approach uses a strategy to create new demand. Therefore, under the reconstructionist view, attention shifts from supply to demand, from a focus on competition to a focus on value innovation―that is, the creation of innovative value that will unlock new demand. With this new focus in mind, it is possible to systematically look across established boundaries of competition and reconstruct existing elements in different markets to create all new market space. (Kim, 2005) Blue Ocean Strategy & Importance

Competing in overcrowded industries is no way to sustain high performance. The real opportunity is to create blue oceans of uncontested market space, making the competition irrelevant. A blue ocean strategic move can create brand equity that lasts for decades. A blue ocean is created in the region where a company's actions favorably affect both its cost structure and its value proposition to buyers. Cost savings are made from eliminating and reducing the factors an industry competes on. Buyer value is lifted by raising and creating elements the industry has never offered. Over time, costs are reduced further as scale economies kick in, due to...

References: Blue Ocean Strategy. (2014). Retrieved from http://www.blueoceanstrategy.comKim, W. C. (2005). BLUE OCEAN STRATEGY. Retrieved from https://ecampus.phoenix.edu/secure/aapd/cwe/citation_generator/web_01_01.asp
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Blue Ocean Strategy Paper
  • Blue Ocean Strategy Paper
  • Essay about Blue Ocean Strategy Criticism
  • Blue Ocean Strategy Review Essay
  • Blue Ocean Strategy Theory and Criticism Essay
  • Blue Ocean Essay
  • The Metaphor of Red and Blue Oceans Describes the Market Universe Essay
  • strategy marketing Essay

Become a StudyMode Member

Sign Up - It's Free