Blue Ocean Strategy Plan
In today's competitive market where companies attempt to outperform one another by creating a brand new product or adjusting an existing product in attempts to appeal to a larger customer base are referred to as a Blue and Red Ocean strategy plans; “Red Oceans represent industries in existence today, and the industry boundaries are defined, accepted, and the competitive rules of the game are understood. Blue oceans denote all the industries, not in existence today- the unknown market space untainted by competition." (Kim & Mauborgne, 2004, p. 82(10), 76–84.). Movie theaters are one example of a Red Ocean. Initially, individuals would watch movies at a drive-in movie theater that later progressed to indoor movie theaters where customers were given the opportunity to purchase foods and beverages. In attempts to outperform standard movie theaters, iPic Entertainment, LLC created iPic movie theaters which offers movie goers a luxury movie theater experience by offering a chef-driven menu instead of standard movie theater concession stands, comfortable lounge chairs, blankets, and pillows while watching movies, and a lounge area where customers can purchase mixed drinks and cocktails. (iPic Entertainment, LLC, n.d.). Description of a Blue Ocean Strategy and its Importance
The automotive industry is one example of an organization that creates a Blue Ocean strategy plans within its self to reconstruct their brand, create and capture a new demand, and make their completion irrelevant. Automobile manufacturers continuously seek ways reinvent their brand and compete with their completion. Offering hybrid and solar power vehicles for customers concerned about the harmful toxic chemicals automobiles emit, cars that are fuel efficient, extended warranties, additional safety features, and amenities such as backup cameras and navigation systems. It's important for companies to create a Blue Ocean strategy plan because it gives them the opportunity to compare their current policy to its competition, explore ways to increase their customer market, create innovative advertising techniques, and explore alternative methods to out-perform their competition. A Product or Service Considered a Blue Ocean Move
Ford is an automobile manufacturer that has reconstructed its Ford Mustang for fifty years by redesign’s its frame, keeping the automobiles familiarity with customers while still adding innovative features, increasing its horsepower, adding an EcoBoost engine, adding a unique blend of increased power and efficiency, making the vehicle affordable to its customers, and increasing the vehicles technology. Because this is year marks the fiftieth anniversary of the Ford Mustang, Ford has launched a new Blue Ocean marketing strategy plan that appeals to a younger generation and create a new demand for their product by enlisting pop-culture experts in its Mustang's campaign. Pollack (2014) “In positioning the Mustang on its 50th anniversary and pitching the vehicle on its engine or specs, Ford is focusing on Mustang as an experience—"what it is like to be on a road trip with no agenda, no schedule, and just to be free." This new marketing campaign exploits the pop-culture generations passion for adventure along with the ability to be free from rules and responsibilities for a short period. Alternative Red Ocean Move for The Same Product and its Pro’s and Con’s The Ford Mustang is an intended Blue Ocean strategy plan within Ford's automobile collection of vehicles because of its ability to reinvent its self continually, but the Chevrolet Camaro is an alternative Red Ocean product within the same industry that has aligned its marketing strategy similar to Ford's by offering a high-performance sports car; this has created a new demand for individuals that love Chevrolet vehicles and want an alternative to the Ford Mustang because they consider Ford cars...
Please join StudyMode to read the full document