Blue Ocean Strategy
Blue Ocean Strategy Paper
MKT/421
September, 29, 2014
Blue Ocean Strategy Paper
Companies are not eternally remaining on the market in a productive way. It is normal to find industries that make wise decisions, but there is also the possibility that the decisions taken have not been the best. Our mission as marketing managers is to discover the wise decision that would mark not only within the industry, but also in the market with the purpose of repeating that decision in a clever and a systematic way. The important strategy to which I am referring is called the blue ocean strategy, which could mean a real challenge for the business.
The primary purpose of the blue ocean strategy is to create safe spaces in the market, where the big concern is to decrease sharing the demand by increasing the size of it furthermore setting aside the competition (Kim, 2004).
In the late 90 s Reed Hastings along with two friends, created Netflix. The original idea was that two important services were combined in the movie rental business: that would not have late payment charges, and that could be rented from home (Ryun, 2011); this because Blockbuster who was the leader of video stores; charged this fee. This was a time when Netflix made significant gains; nevertheless Netflix did not stop there, and bearing in mind the big advance of the high speed Internet as well as all the digital media, then began to replace the option of receiving physically DVDs by the choice of online subscriptions, where subscribers acquire the right to consume unlimited audiovisual content that is presented in the online catalogue, all this for a fee of $7.99 per month; providing the customer benefits as they were the price and convenience (Ryun, 2011).
In the year 2005 Netflix had a database of more than 4 million subscribers, which resulted in the conquering of the competition and become the leader of companies dedicated to online movies rental (Ryun, 2011).
This situation resulted
MKT/421
September, 29, 2014
Blue Ocean Strategy Paper
Companies are not eternally remaining on the market in a productive way. It is normal to find industries that make wise decisions, but there is also the possibility that the decisions taken have not been the best. Our mission as marketing managers is to discover the wise decision that would mark not only within the industry, but also in the market with the purpose of repeating that decision in a clever and a systematic way. The important strategy to which I am referring is called the blue ocean strategy, which could mean a real challenge for the business.
The primary purpose of the blue ocean strategy is to create safe spaces in the market, where the big concern is to decrease sharing the demand by increasing the size of it furthermore setting aside the competition (Kim, 2004).
In the late 90 s Reed Hastings along with two friends, created Netflix. The original idea was that two important services were combined in the movie rental business: that would not have late payment charges, and that could be rented from home (Ryun, 2011); this because Blockbuster who was the leader of video stores; charged this fee. This was a time when Netflix made significant gains; nevertheless Netflix did not stop there, and bearing in mind the big advance of the high speed Internet as well as all the digital media, then began to replace the option of receiving physically DVDs by the choice of online subscriptions, where subscribers acquire the right to consume unlimited audiovisual content that is presented in the online catalogue, all this for a fee of $7.99 per month; providing the customer benefits as they were the price and convenience (Ryun, 2011).
In the year 2005 Netflix had a database of more than 4 million subscribers, which resulted in the conquering of the competition and become the leader of companies dedicated to online movies rental (Ryun, 2011).
This situation resulted
References: Brooks, C. (2013, December 17). What is Blue Ocean Strategy? Retrieved from Business News Daily: http://www.businessnewsdaily.com/5647-blue-ocean-strategy.html Kim, W. C. (2004, October). BLUE OCEAN STRATEGY. Harvard Business Review, pp. 76-84. Ryun, N. (2011, March 1). Netflix politics. Retrieved from The American Spectator: http://web.a.ebscohost.com.ezproxy.apollolibrary.com/ehost/pdfviewer/pdfviewer?sid=31038785-37a0-4b50-9402-3b86830c94e8%40sessionmgr4005&vid=16&hid=4204