Blue Ocean Strategy
- Submitted by: cmrowland1
- Views: 463
- Category: Other
- Date Submitted: 08/11/2014 06:37 PM
- Pages: 4
- Report this Essay
Blue Ocean Strategy Paper
Clint Rowland
MKT/421
August 04, 2014
Professor Elizabeth Hartsig
The biggest mistake any business can make is to focus too much attention on their competition. Likewise, competing in an overcrowded market is no way to sustain high performance. This is where the idea of creating a Blue Ocean Strategy in regards to market space offers an advantage. Understanding the analogy of a blue ocean versus a red ocean strategy is simple. “In an established market, businesses are constantly fighting each other to gain customers and increase sales. This is like an ocean full of sharks that tear each other apart and turn the water red with blood. The business can move to another ocean which is peaceful and blue, without the vicious sharks.” (ehow.com) Blue oceans symbolize those industries not in existence today—the unknown market space, untainted by competition. In blue oceans, demand is created rather than fought over. There is ample opportunity for growth that is both profitable and rapid. In blue oceans, competition is irrelevant because the rules of the game are waiting to be set. The term, “ Blue Ocean” is an analogy to depict the wider, deeper potential of market space that is not yet explored The objective behind a blue ocean strategy is to create a new market space rather than surpassing competition within an existing industry, thus making the competition irrelevant.
In a blue ocean strategy, the company will separate itself from the competition by positioning dead on from the beginning on uncharted segments to create new market and capture new demand rather than joining in a blue ocean strategy, the company will separate itself from the competition by positioning dead on from the beginning on uncharted segments to create new markets and capture new demand instead of joining the red ocean rivalry. This is exactly what Nintendo did back in 2006 when launching the Nintendo Wii. Here the new market creation focused on ease of...
Clint Rowland
MKT/421
August 04, 2014
Professor Elizabeth Hartsig
The biggest mistake any business can make is to focus too much attention on their competition. Likewise, competing in an overcrowded market is no way to sustain high performance. This is where the idea of creating a Blue Ocean Strategy in regards to market space offers an advantage. Understanding the analogy of a blue ocean versus a red ocean strategy is simple. “In an established market, businesses are constantly fighting each other to gain customers and increase sales. This is like an ocean full of sharks that tear each other apart and turn the water red with blood. The business can move to another ocean which is peaceful and blue, without the vicious sharks.” (ehow.com) Blue oceans symbolize those industries not in existence today—the unknown market space, untainted by competition. In blue oceans, demand is created rather than fought over. There is ample opportunity for growth that is both profitable and rapid. In blue oceans, competition is irrelevant because the rules of the game are waiting to be set. The term, “ Blue Ocean” is an analogy to depict the wider, deeper potential of market space that is not yet explored The objective behind a blue ocean strategy is to create a new market space rather than surpassing competition within an existing industry, thus making the competition irrelevant.
In a blue ocean strategy, the company will separate itself from the competition by positioning dead on from the beginning on uncharted segments to create new market and capture new demand rather than joining in a blue ocean strategy, the company will separate itself from the competition by positioning dead on from the beginning on uncharted segments to create new markets and capture new demand instead of joining the red ocean rivalry. This is exactly what Nintendo did back in 2006 when launching the Nintendo Wii. Here the new market creation focused on ease of...