Mkt 421 Blue Ocean Strategy

Blue Ocean Strategy Paper
Julian Nicholson
MKT/421
January 15, 2015
Terry Dunning

Blue Ocean Strategy Paper Blue Ocean Strategy Pertinence
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
is a method that businesses may use to maneuver their business out of the bloody feeding frenzy and into calm blue waters. According to the Blue Ocean Strategy this blue ocean is where there is no competition and limitless space is available for growth. Simply put The Blue Ocean Strategy facilitates companies in seeking out new and untapped markets, thus providing new goods and services for the consumer.
Products or Services Considered Blue Ocean Moves
Simply put products and or services considered to be blue ocean moves are complimentary in nature.
Such products and or services indirectly impact the utility a consumer receives. Until as of late most businesses seemed to have tunnel vision and focused solely on their specific product and or industry, without asking what happens before, during, and after the use of their product or service. As an example Movie Theatre A decides to think outside their specific service and products sold at the concession stand. They use the Blue Ocean
Strategy

ask questions that are specific to their business yet take into account outside influencers that effect their profitability.. They determine what influencer’s they as a business can effect in a positive manner to not only increase ticket sales, but in doing so they are now enjoying new revenue from additional services provided for their patrons. Movie A decides to provide additional parking for even more movie goers by constructing a parking garage at minimal cost to the consumer and less hassle in finding a safe place to park. Additionally Movie A also provides childcare for patrons of small children by leasing a new sectioned off area of their theater to professionally licensed childcare providers.
Alternative Red Ocean Move
A Red Ocean Strategy is in direct contrast with the Blue Ocean Strategy.
Although on the surface this move by a company may seem counterproductive, it does have some merit. This strategy will likely be used when introducing a product into an already saturated market when considering the low cost of marketing and educating the people on the company product. An example might be the introduction of a new brand of soda brand into the market that is dominated by Coca- Cola followed up by Pepsi. It is clear that the potential consumer will not need education about the product. Additionally it is evident that research costs will be greatly reduced as there is a plethora of data already available. However it is very unlikely that the new soda brand will make any real stake in the soda industry.
Conclusion
It is clearly evident that little or no competition and a vast amount of space is available for growth would be deemed advantageous for business vitality. For this reason the Blue Ocean

Strategy is being looked at by more and more business as a potential option for future growth of their specific organization. However any major move in direction by an organization brings about risks. Therefore any such move by an organization will likely take months if not years to
make.

References http://web.a.ebscohost.com.ezproxy.apollolibrary.com/ehost/detail/detail?sid=f137e605-92dd-4e7f-ade9-d4ae0422ba28%40sessionmgr4005&vid=0&hid=4212&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=bth&AN=14599913 http://www.ehow.com/info_7743376_importance-blue-ocean-strategy-business.html