Blue Ocean Strategy
Blue Ocean Strategy
MKT 421
May 4, 2015
William Alan McIntyre
Blue Ocean Strategy While blue ocean strategy entails creating new opportunities where one 's do not currently exist, blue ocean strategy does is not exclusive to new business and new segments through R&D. Blue oceans can be created from current industry standards by redefining the customer experience. IKEA is a prime example of how crowding in existing business practices can offer blue ocean strategy to the company willing to redefine business culture. In this essay we will discuss the importance of blue ocean strategy. We will then discuss the blue ocean move that sets IKEA apart from other businesses in its industry. Finally we will consider a red ocean move for IKEA as well as the pros and cons of such a strategy. Ultimately, we will discover how IKEA found an alternative resources of blue ocean strategy within the highly concentrated furniture industry At a basic level, competitive advantage in business is gained by strategy. The nature of traditional strategy is to out maneuver the competitive in order to gain competitive advantage. As competition mounted in the global marketplace, a slew of red ocean strategies emerged, all arguing that competition was the core of corporate success and failure. (Chan 2004) The blue ocean concept is based on an alternative strategy that is created by tapping into opportunity and value resources that do not currently exist. Pivotal moves in our culture have come from new ideas as well as research and development for improving existing ideas to create blue oceans. Technology as an industry is filled with examples of how new ideas and innovation can create market segments with little to no competition. Although, inevitably, hastened the commoditization of products and services eventually stoked price wars and shrunk profit margins. (Chan 2004) The service based culture at IKEA is a key driver in the company 's blue ocean strategy.
MKT 421
May 4, 2015
William Alan McIntyre
Blue Ocean Strategy While blue ocean strategy entails creating new opportunities where one 's do not currently exist, blue ocean strategy does is not exclusive to new business and new segments through R&D. Blue oceans can be created from current industry standards by redefining the customer experience. IKEA is a prime example of how crowding in existing business practices can offer blue ocean strategy to the company willing to redefine business culture. In this essay we will discuss the importance of blue ocean strategy. We will then discuss the blue ocean move that sets IKEA apart from other businesses in its industry. Finally we will consider a red ocean move for IKEA as well as the pros and cons of such a strategy. Ultimately, we will discover how IKEA found an alternative resources of blue ocean strategy within the highly concentrated furniture industry At a basic level, competitive advantage in business is gained by strategy. The nature of traditional strategy is to out maneuver the competitive in order to gain competitive advantage. As competition mounted in the global marketplace, a slew of red ocean strategies emerged, all arguing that competition was the core of corporate success and failure. (Chan 2004) The blue ocean concept is based on an alternative strategy that is created by tapping into opportunity and value resources that do not currently exist. Pivotal moves in our culture have come from new ideas as well as research and development for improving existing ideas to create blue oceans. Technology as an industry is filled with examples of how new ideas and innovation can create market segments with little to no competition. Although, inevitably, hastened the commoditization of products and services eventually stoked price wars and shrunk profit margins. (Chan 2004) The service based culture at IKEA is a key driver in the company 's blue ocean strategy.
References: Edvardsson, B., & Enquist, B. (2002). "The IKEA Saga". How Service Culture Drives Service Strategy IN BRIEF: Ikea marketing strategy. (2006). Marketing Week, , 10. Retrieved from http://search.proquest.com/docview/228180290?accountid=35812 IKEA strategy targets big/bigger/best stores. (2004). DSN Retailing Today, 43(21), 28. Retrieved from http://search.proquest.com/docview/228445478?accountid=35812