Have you ever wondered how a new product or service seems to appear from nowhere, then rises to the most sought after, must have in society? The term for an instance of this nature is referred as blue ocean. A description of this term comes from the notion that companies and organizations with similar products have boundaries that are defined and accepted by all competitors. These limitations lead to competition versus innovation, thus the term red ocean. According to Blue Ocean Strategy (2014), “red oceans refer to the known market space – all the industries in existence today. In red oceans, industry boundaries are clearly delineated and accepted, and the competitive rules of the game are known.” These boundaries and rules lead to companies battling to obtain the greatest share of the demand in their particular market, using subtle changes and a price difference to outshine their rivals. “Products turn into commodities, and increasing competition turns the water bloody” (Kim & Mauborgne, 2004).…
Blue ocean is a slang term that comes from the book "The Blue Ocean Strategy," by W. Chan Kim and Renee Mauborgne. Blue ocean describes the opportunities of vast, untapped market spaces that can be developed by expanding market boundaries or launching new industries. In any established market, many businesses are in constant battle with each other for sales and customers. This is compared by a blue ocean because in a blue ocean many sharks will fight to the death for the ocean. This is also an example of red ocean; because of the battle between the many sharks, just like businesses fighting for customers and sales, blood appears from the battle. A majority of businesses are looking for their own blue ocean to work peacefully in but that may be hard to find in any type of business category.…
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)…
In order to process the nature of a blue ocean entity, it is imperative to grasp the point of derivation, which is otherwise known as a red ocean. A red ocean, which is polar to a blue ocean, generates its namesake from a literal representation. Imagine a feeding frenzy in the middle of the ocean; the water turns red with the victim’s blood as predators compete for survival. Now, apply this image to economic conditions. In an open market in any given industry, where there are established standards, barriers, and rules, competitors in a well-defined saturated industry jockey for market shares from the available pot. That, in a nutshell, is a red ocean.…
Blue ocean strategy is important because it avoids costly competition and leaves the company to expand without worrying about other firms operating in their space. The first key to blue ocean strategy is focusing on noncustomers. Instead, companies should focus on creating a larger industry by attracting people who have never purchased from that industry. By doing this, not only are you creating a larger industry, but you are opening new pathways to new customers who will refer your product or service to even more new customers. After you have attracted new customers, it is time to move away from existing markets where all of the customers are doing business with either you or the competition to uncontested…
Blue Ocean Strategy is slang for the uncontested, innovative market space for an unknown industry. The strategy also changes the focus from the current competition to creating a new value and demand. Professors W. Chan Kim and Renee Mauborgne wrote the Blue Ocean strategy concept in their book ,”How To Create Uncontested Market Space and Make the Competition Irrelevant”. The Blue Ocean Strategy (BOS) concept represents potential market growth and profits. Within the BOS, there lies six main principles to guide the…
The Blue Ocean Strategy is a slang term for the uncontested market space for an unknown industry or innovation (Investopedia, 2014). Take the circus industry, for example, its appeal is in rapid decline as technology becomes more interesting than seeing chained animals perform. When the circus first came out, it was the 1700 where no one had ever seen performances of its kind. Now the traditional circus’s audiences are in decline, but the increase of unwanted attention, such as animal rights activists, remains. In 1984, former circus performer Guy Laliberte and a group of other street performers founded Cirque du Soleil, which takes the circus industry to all new heights (Kim & Mauborgne, 2004). Cirque du Soleil is a different take on the traditional circus without animals. It takes the circus industry to a whole new level increasing the interest of adults rather than focusing more on children with their breathtaking acrobatics without completely competing with circuses such as Ringling Brothers and Barnum & Baileys. This is the Blue Ocean Strategy.…
Blue Ocean Strategy is a concept in which authors W. Chan Kim and Renee Mauborgne devised. They then wrote a bestselling book called you guessed it, Blue Ocean Strategy. In this book the authors expound upon at great length, the benefits for business owners to leave the red ocean. Red Ocean is a term used for what is known as the waters of competition where the fury of competition mirrors that of waters infested with sharks on a feeding frenzy. This is historically where the vast majority of businesses have found themselves. However in direct contrast the Blue Ocean Strategy…
“Strategy” within this global framework most closely resembles a ‘marketing strategy’ that addresses target markets, segmentation, positioning and allocation of resources.…
The Blue Ocean Strategy focuses on the three industries that closely touch people’s lives. Areas they looked at were Autos, Computers and Movie and what companies within those fields are doing to managing sustainable profit and growth through the test of time. The creation of a blue ocean strategy places its focus on strategic moves to place their brand in position long past its rise to fame. Rather than focusing on creating a company and battling your competitor’s blue ocean strategy gears to forecasting innovations and products to make oceans of uncontested market space. (W. Kim, 2004) A product strategy…
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.…
There is no single, universally accepted definition for strategy. Some understand it as a deliberate plan, drawn up to achieve set goals, others see it more as a process, whereby a company’s decision and actions are made in alignment with opportunities or threats in the industry. Even others define it as a pattern of consistent actions in decision-making and lastly there are those with a military view of strategy, who consider it a manoeuvre to beat and outsmart the competition (Parthasarthy, 2006). By drawing from each of the definitions, one could say that strategy and by extension, strategic management, is constituted of short-term strategies involving managing and planning for the present and long-term decisions and actions, made, taken and implemented by managers to achieve superior competitive advantage, compared to their competitors.…
The Authors wrote this book in such a unique way and tremendous, a direct challenge and oppose of the well-known “Red Ocean Strategy”. To make it clear and justifying my true insight about this book, I’ll explain a piece of Red before we go deep into the Blue Ocean. Red is basically one would say as a “Standard Operating Method” of people getting into each other, everyone is eager in their own way to succeed, getting the better half of the pie thus creating a blood bath in the process.…
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.…
What is a blue ocean strategy? What is a red ocean strategy? Explain these from the perspective of company, competition, costs, and markets.…