Blue Ocean Strategy
Blue Ocean Strategy Paper
Sarah Chambers
MKT/421
09/21/2014
Norbert Gray JR.
Blue Ocean Strategy Paper
The marketing world is cut-throat and full of competition. Monopolies cut down all opposition until they are last and only ones standing. Oligopolies exist as multiple competitors work together to control the market and keep incoming competitors from entering the market. Perfect competition is a myriad of competitors constantly fighting with each other over their slice of the market. It is easy to see how such market circumstances could be considered as “bloody”, and earn these markets the title of red oceans.
A red ocean is easily understood since it “represents all the industries in existence today” (Kim & Mauborgne, 2004). These industries have boundaries, and competition is in varying states. A blue ocean is “all the industries not in existence today” (Kim & Mauborgne, 2004). Cell phones are everywhere today, only a small portion of the U.S.’s population does not use this product. In 1980’s cell phones existed, but they were not the craze that they are today. Most individuals used landline phones. In the beginning, the cell phone market was a blue ocean. It has since become a red ocean market from the sheer amount of competitors entering the field offering a variety of styles, OS, and services. A blue ocean is a place of potential. A blue ocean can also be created from the red ocean. If an already existing service or product industry can provide other complementary services, they “can create a blue ocean of new market space” (“Complementary Products And Services”, 2014). Essentially, they take an industry already in existence, and alter it enough to create an entirely new area of market.
An example of a blue ocean move is Amazon’s Prime Air. Prime Air is to be a new delivery service that makes deliveries within 30 minutes of the client’s order. This service will be using robotic drones that can fly to the programmed destination and
Sarah Chambers
MKT/421
09/21/2014
Norbert Gray JR.
Blue Ocean Strategy Paper
The marketing world is cut-throat and full of competition. Monopolies cut down all opposition until they are last and only ones standing. Oligopolies exist as multiple competitors work together to control the market and keep incoming competitors from entering the market. Perfect competition is a myriad of competitors constantly fighting with each other over their slice of the market. It is easy to see how such market circumstances could be considered as “bloody”, and earn these markets the title of red oceans.
A red ocean is easily understood since it “represents all the industries in existence today” (Kim & Mauborgne, 2004). These industries have boundaries, and competition is in varying states. A blue ocean is “all the industries not in existence today” (Kim & Mauborgne, 2004). Cell phones are everywhere today, only a small portion of the U.S.’s population does not use this product. In 1980’s cell phones existed, but they were not the craze that they are today. Most individuals used landline phones. In the beginning, the cell phone market was a blue ocean. It has since become a red ocean market from the sheer amount of competitors entering the field offering a variety of styles, OS, and services. A blue ocean is a place of potential. A blue ocean can also be created from the red ocean. If an already existing service or product industry can provide other complementary services, they “can create a blue ocean of new market space” (“Complementary Products And Services”, 2014). Essentially, they take an industry already in existence, and alter it enough to create an entirely new area of market.
An example of a blue ocean move is Amazon’s Prime Air. Prime Air is to be a new delivery service that makes deliveries within 30 minutes of the client’s order. This service will be using robotic drones that can fly to the programmed destination and
References: Kim, W. C., & Mauborgne, R. (2004, October). Blue Ocean Strategy. Harvard Business Review. Retrieved from http://hbr.org/2004/10/blue-ocean-strategy/ar/1 Complementary products and services. (2014). Retrieved from http://www.blueoceanstrategy.com/concepts/glossary/glossary-complementary-products- and-services/ Amazon.com. (n.d.). amazon Prime Air. Retrieved from http://www.amazon.com/b?node=8037720011