blue oceon strategy

Topics: Strategic management, Management, Business model Pages: 10 (2527 words) Published: October 15, 2014
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Blue Ocean strategy
Introduction
Blue ocean strategy is an argument fostered by authors on the way companies battled for success through competition. It was published in 2005, and it was based on more than 150 strategies used by more than a decade and thirty industries. Competition has been a key strategy to acquisition of larger market share among companies that produce similar products. The Blue ocean strategy represent analytical tools and frameworks that advances for the company’s ability to systematically capture and create Blue Ocean. The four principles of this strategy have the potential to influence the conventional strategies that various companies utilize. The four principles include the ability to reach beyond current existing demands, correct sequencing of strategies, expanding the focus picture and the means of creating uncontested market share. The market share can be created through restructuring the existing boundaries. This paper seeks to analyze how blue ocean strategy has influenced the conventional strategies to expansion of the market share given that it makes the spirit of competition irrelevant to business. Furthermore, it seeks to discuss the authors view on blue ocean strategy if it is utopia or reality.

The challenged imposed by blue ocean strategy on conventional strategy models
Every business that is established has a business model that guide the manner in which it carry out its operations. The model defines the manner in which the business will entice customers to purchase its goods. In addition, it guides the way the business managers will strategize the delivery of values to the customers. It can be deduced there are two universes that surround business that include red and Blue Ocean. The red ocean represents the market demand that the company has to battle in order to acquire a share. The boundaries of the companies are defined in the red ocean, and the company’s innovative abilities are limited. The managers are blasphemed by the competitive nature and are blocked from expanding there thinking horizons. The red ocean depicts how current conventional strategies have caused crowding and unhealthy competitions among business firms (Tongur and Engwall 46).

However, the blue ocean strategy represent the universe where the customer demands are created rather than battling to acquire. It denotes business firms that seek to acquire unknown market. According to Mittra and Tait (713) blue ocean strategy, give an ample opportunity for the business firms to grow rapidly and in a profitable manner. The two ways given by the author on how to create Blue Ocean have led to the abandonment of conventional models that were used to draw business strategies. Some companies have change their business approach and created new industries. For instance, eBay industry changed its strategy on the auction industry. The company altered the boundaries that existed and created new opportunities in a very competitive market point.

In addition, Harvard Business Review (34) discusses how Cirque du Soleil succeeded through adoption of blue ocean strategy idea. The company is the largest dealer of cultural exports in Canada. Millions of people watch dozen of productions of this company at over 90 cities. The company outdid several leading global circus through generation of revenues. Some of these outdone circuses include Barnum & Bailey and Ringling Bros. previously, the business wall of the circus was declining, and the animal rights activists were airing many sentiments. Ringling and the other company relied on competition as a way out but experience drastic reduction of audience in the end (Kondoh et al. 368).

The failure of the other companies shows the inability of the competition to lead to success in situations of crowded and contentious issues that surround business. Many companies may then shift from using this strategic approach and rather endorse blue...


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