Mkt 421 Blue Ocean Strategy
Blue Ocean Strategy
Stephanie Copenhaver
MKT/421
December 15, 2014
Fritz Beiermeister
Blue Ocean Strategy
What is Blue Ocean strategy and the importance of it? Blue Ocean Strategy is the creation of a new product that is not used in the market and there will be no competitors for this product. By having no competition in this market place it will help decrease the company’s costs but will give the company new customers so the value will go up.
It is a theory that was created by INSEAD professors W. Chan Kim and Renee Mauborgne which advocates the creation of a new market space as a mean for achieving profitable growth. (W. Chan Kim and Renee Mauborgne, Harvard Business Review)
The Blue Ocean Strategy is a very powerful innovation process. It strives at creating a profitable high-growth for companies. The objective of this strategy is to create and secure new demand for a product by focusing on groups of customers that have not been targeted before with a strategy that will create a jump in value for both the consumers and the company. …show more content…
The company will use a select group of customers that value certain pieces of the new product. The company could decide not to make the product as good in some areas that the target customers don’t really care about. The company could consider making the new product better in certain areas based on the characteristics that are valued high by the target customers and introduce new features.
Once this has been completed, the new product will be positioned in a way that provides no alternatives and will allow more effective branding tactics to be
Stephanie Copenhaver
MKT/421
December 15, 2014
Fritz Beiermeister
Blue Ocean Strategy
What is Blue Ocean strategy and the importance of it? Blue Ocean Strategy is the creation of a new product that is not used in the market and there will be no competitors for this product. By having no competition in this market place it will help decrease the company’s costs but will give the company new customers so the value will go up.
It is a theory that was created by INSEAD professors W. Chan Kim and Renee Mauborgne which advocates the creation of a new market space as a mean for achieving profitable growth. (W. Chan Kim and Renee Mauborgne, Harvard Business Review)
The Blue Ocean Strategy is a very powerful innovation process. It strives at creating a profitable high-growth for companies. The objective of this strategy is to create and secure new demand for a product by focusing on groups of customers that have not been targeted before with a strategy that will create a jump in value for both the consumers and the company. …show more content…
The company will use a select group of customers that value certain pieces of the new product. The company could decide not to make the product as good in some areas that the target customers don’t really care about. The company could consider making the new product better in certain areas based on the characteristics that are valued high by the target customers and introduce new features.
Once this has been completed, the new product will be positioned in a way that provides no alternatives and will allow more effective branding tactics to be