MKT 421 Week 4 Assignment Blue Ocean Strategy Paper
Blue Ocean Strategy
MKT 421
Name
Date
Instructor
Blue Ocean Strategy
Description and Significance According to Cham Kim and Renee Mauborgne (2004), the Blue Ocean strategy involves the description of how the organization should try and proceed to find some way to work in the marketplace that is not bloodied by the competition and also that is free of competitors. The strategy is against working in conditions such as Red Ocean, where businesses are ferociously fighting each other for some share of the marketplace. In essence, businesses are most often looking for ways that can better contend with their competitors, and that is the Blue Ocean strategy. According to the book Blue Ocean Strategy, the leading companies succeed not by battling with competitors, but by systematically developing “Blue Oceans” of uncontested market space ripe for the growth. Such a strategy of Blue Oceans the simultaneous pursuit of differentiation and also low cost, including the theory behind it not to outperform the competition in the on-hand industry, but to develop new market space or rather the “Blue Ocean”, in which case it makes the competition irrelevant. (Brooks, 2013) As such, the Blue Ocean strategy illustrates the opportunities of vast and untapped market spaces (Kim & Mauborgne, 2004) The Blue Ocean strategy is quite important. This is because it allows some business to sell its products with no or little competition from other firms. It is also significant for some new business that does not have enough money for advertising and does not want to sell its products in some market where other industries have already established strong brands. In addition, the Blue Ocean creates some new market and also it makes competition quite irrelevant. It focuses on non-consumers and they help in developing some new demand and market share. Companies using this strategy are enjoying the benefits of differentiation and low cost. The Blue Ocean strategy is quite significant
MKT 421
Name
Date
Instructor
Blue Ocean Strategy
Description and Significance According to Cham Kim and Renee Mauborgne (2004), the Blue Ocean strategy involves the description of how the organization should try and proceed to find some way to work in the marketplace that is not bloodied by the competition and also that is free of competitors. The strategy is against working in conditions such as Red Ocean, where businesses are ferociously fighting each other for some share of the marketplace. In essence, businesses are most often looking for ways that can better contend with their competitors, and that is the Blue Ocean strategy. According to the book Blue Ocean Strategy, the leading companies succeed not by battling with competitors, but by systematically developing “Blue Oceans” of uncontested market space ripe for the growth. Such a strategy of Blue Oceans the simultaneous pursuit of differentiation and also low cost, including the theory behind it not to outperform the competition in the on-hand industry, but to develop new market space or rather the “Blue Ocean”, in which case it makes the competition irrelevant. (Brooks, 2013) As such, the Blue Ocean strategy illustrates the opportunities of vast and untapped market spaces (Kim & Mauborgne, 2004) The Blue Ocean strategy is quite important. This is because it allows some business to sell its products with no or little competition from other firms. It is also significant for some new business that does not have enough money for advertising and does not want to sell its products in some market where other industries have already established strong brands. In addition, the Blue Ocean creates some new market and also it makes competition quite irrelevant. It focuses on non-consumers and they help in developing some new demand and market share. Companies using this strategy are enjoying the benefits of differentiation and low cost. The Blue Ocean strategy is quite significant
References: Kim, W. & Mauborgne, R. (2004). Blue Ocean Strategy. Harvard Business Review, 82(10), 76– 84. Swan, S. (2014). Applying Blue Ocean Strategy to digital marketing. Online Resource. Retrieved on March 20, 2015 from http://www.smartinsights.com/online-brand-strategy/brand- positioning/blue-ocean-strategy-digital-marketing/ Brooks, C. (2013, December 17). What is Blue Ocean Strategy?. Business News Daily. Retrieved from http://www.businessnewsdaily.com/5647-blue-ocean-strategy.html