Product Strategy

Product or Service Strategy
Danielle Weadd
July 3, 2014
Rene Cintron

Businesses always look for ways to improve within the company. One strategy that business can use is the Blue Ocean strategy. The Blue Ocean strategy is a marketing concept.   The concept was developed by Renee Mauborgne and W. Chan Kim. The concept consists of two markets that are the Blue Ocean and Red Ocean. Businesses compete with other businesses to gain most of the profit, but the concept was developed to allow decision makers to think a little different. The Blue Ocean strategy allows business to focus on how to improve methods within their own business and allow the competition to be irrelevant (Kim, W., & Mauborgne, R., 2004).
The Blue Ocean strategy is essential because it allows businesses to sell its products with little or no competition from other businesses. The Blue Ocean strategy can be useful for any business especially small business. A small business that has a few funds for advertising or does not want to sell products in a market that has been established can use the Blue Ocean strategy. Businesses study other businesses in the existing market in order to use the Blue Ocean strategy. The new business can study the existing businesses by looking at which expenses are necessary. This will allow the new business to eliminate, increase profit, and gain more knowledge.   The Blue Ocean strategy allows business to think about a new business model that is only one of its kind. This in return allows the company to attract new customers and creating new demand. (Blue Ocean Strategy, 2012).
In addition to the Blue Ocean strategy, another strategy is called the Red Ocean. The Red Ocean is where competition is vicious between competitors. The Red Ocean strategy will allow the competitor to make their product or service stand out the most by cost or differentiation. Competitors also try to take advantage of a demand within the market (Blue Ocean Strategy, 2012).