Blue Ocean Strategy Paper
October 13, 2014
Professor Ricci Rizzo MBA
Blue Ocean Strategy
The Blue Ocean Strategy focuses on the three industries that closely touch people’s lives. Areas they looked at were Autos, Computers and Movie and what companies within those fields are doing to managing sustainable profit and growth through the test of time. The creation of a blue ocean strategy places its focus on strategic moves to place their brand in position long past its rise to fame. Rather than focusing on creating a company and battling your competitor’s blue ocean strategy gears to forecasting innovations and products to make oceans of uncontested market space. (W. Kim, 2004) A product strategy that is much a product of managerial action, rather than the creation or invention of new market space but the development and evolution of the products rather than the company. Primary Strategy & Importance
The blue ocean strategy takes a look at the host of companies in the thirty plus industries and the key players within them. The process of analyzing and studying the leading and successful players and the unsuccessful and failing competition. Looking for distinct and common differences between the groups, as well as the commonalities to discover the common factors that lead to the successful growth of one and failings of the other. The consistent variable common pattern that shows focusing on competition does not provide for long term successful companies. The common practice is the within the market place the competition style strategy has little advantages to it. (W. Kim, 2004) The irrelevant old school theory that out doing your competitors was not the road to take that leads to profit and success. Placing the value in innovation and creation will lend itself to a new demand and achieve a value that has a largely dominate market with high pay offs and leave an ocean that separates you from the completion. The creation and break out of strategic pricing and targeting the strategy of new demands and thinking of new ideas that competitors are not offering with strategic pricing and low cost you can create a new market that is far beyond the industry and competitors you seek to outdo. Marketing from the point of view of the customer or consumer rather than what planning and research will outdo your competition shows no long term successful models, and the continual innovation and meeting the visionary demands of a new market will leave you as the sole leader of a this variation of new product. Similar Strategic Move
Blue ocean strategy shows the critical importance of focusing your strategy not on competition or trying to reinvent the wheel, but innovation and creation of demand that in 20 years will be the trend the need and meet the customer needs that competition (established or not) have failed to see. Important factors of use of the company talent and resources such as cost and general broad customer generic products will satisfy the moment but mostly established players succeed and ride the roller coaster of size and market share. The best example that uses the blue ocean strategy is the Fitness industry and the success of Health Clubs. The gym and fitness industry is a mostly new industry in America and since the 1970’s/1980’s has had more than its fair share of failures as the innovations and offerings mixed with demand were not there. The importance of health and taking care of yourself as well as the eternal trend of looking good was a trend that was gaining strength and today has become a way of life (or you will have no life you will be dead). Gold’s gym which is credited for taking the fitness gym to the level of meeting a way of life in America that has now become a way of life. Insurance companies, doctors, social circles, advertisements, daily activities and stamina, and the demand of your own mother to exercise stay in...
References: Perreault, W. D. (2011). Basic Marketing: A marketing strategy planning approach (19th ed). New York: McGraw-Hill Irwin.
Statista.com. (2013). U.S. Health Club Industry . New York: Ipsos Media, Simmons National Consumer Studies and Consumer Insights from Scarborough Research.
W. Kim, R. M. (2004). Blue Ocean Strategy. Harvard Business Review, 10(86), 76-84.
Please join StudyMode to read the full document