Blue Ocean Strategy
Blue Ocean Strategy Paper
Adel Erolsky
University of Phoenix
MKT/421
Ron Rosalik
August 25, 2014
Blue Ocean Strategy Paper
In today’s business world, competition is a big concern for nearly every corporation. The competition on the market is getting stronger and more difficult to overcome, in many situations corporations terminate their products, production, or their services, just because it is impossible to continue; the cost is too high to focus on gathering development projects in marketing, production, market research, and product innovation, to fight against the competitors.
The kind of competition market described previously is an example of a Red Ocean Strategy. The market is oversaturated with companies and, basically, the organizations are cannibalizing each other for a market place with same consumers, for just little margins of profit. Examples of Red Ocean corporations are corporate giants such as Walmart, Target, Coca Cola and so on. These are the companies that compete to keep up in the market place, always beating the competitors with similar products. They manipulate existing demand and they align their business with its strategic choice of differentiation or low cost. Basically, it’s a struggle to float in the red water, where a shark can devour you at any moment.
The Blue Ocean strategy version is more pleasant and calm. Imagine the blue ocean of the Pacific close by the French Polynesia, where the waters are blue, clear and have no vicious sharks to eat you. That’s where you want to swim alone, and enjoy the waters and the nature. In this version, the business has an unmarked market spaces so it creates a new demand; consequently, the competition do not matter. This strategy has an opportunity to have a big growth and high profits.
The Blue Ocean Strategy is like a unique business, a blue fish, in the picture below, offering a product or service that has particular characteristics different from all the rest of the
Adel Erolsky
University of Phoenix
MKT/421
Ron Rosalik
August 25, 2014
Blue Ocean Strategy Paper
In today’s business world, competition is a big concern for nearly every corporation. The competition on the market is getting stronger and more difficult to overcome, in many situations corporations terminate their products, production, or their services, just because it is impossible to continue; the cost is too high to focus on gathering development projects in marketing, production, market research, and product innovation, to fight against the competitors.
The kind of competition market described previously is an example of a Red Ocean Strategy. The market is oversaturated with companies and, basically, the organizations are cannibalizing each other for a market place with same consumers, for just little margins of profit. Examples of Red Ocean corporations are corporate giants such as Walmart, Target, Coca Cola and so on. These are the companies that compete to keep up in the market place, always beating the competitors with similar products. They manipulate existing demand and they align their business with its strategic choice of differentiation or low cost. Basically, it’s a struggle to float in the red water, where a shark can devour you at any moment.
The Blue Ocean strategy version is more pleasant and calm. Imagine the blue ocean of the Pacific close by the French Polynesia, where the waters are blue, clear and have no vicious sharks to eat you. That’s where you want to swim alone, and enjoy the waters and the nature. In this version, the business has an unmarked market spaces so it creates a new demand; consequently, the competition do not matter. This strategy has an opportunity to have a big growth and high profits.
The Blue Ocean Strategy is like a unique business, a blue fish, in the picture below, offering a product or service that has particular characteristics different from all the rest of the
References: Blue Ocean. (2014). Retrieved from www.investopedia.com: http://www.investopedia.com/terms/b/blue_ocean.asp Halligan, B. (2006, September 15). Inbound Marketing. Retrieved from blog.hubspot.com: http://blog.hubspot.com/blog/tabid/6307/bid/54/Blue-Ocean-Strategy-A-Small-Business-Case-Study.aspx Murray, A. (2014). Wall Street Journal. Retrieved from guides.wsj.management: http://guides.wsj.com/management/strategy/what-is-blue-ocean-strategy/ Zinzanni, T. (2014). Retrieved from teatrozinzanni/sf: http://zinzanni.com/sf/