Walgreens
Introduction
Kim and Mauborgne (2004) believe opportunities exist for organizations to grow rapidly, create market value, and distance themselves from their competitors at the same time. These opportunities exist in the form of untapped, slightly or noncompetitive markets called blue oceans.
Developing an untapped market requires strategic planning. Thompson, Peteraf, Gamble, and Strickland (2011) considers strategic planning the layout for directing future business. Laying out the plan requires organizations to initiate an interrelated five-step process called the strategic management process (Thompson, Peteraf, Gamble, & Strickland, 2011). Porter (1996) believes the essence of strategic management involves studying why some companies outperform other. Through careful study, a company should determine how to compete successfully and obtain sustainable advantages (Porter, 1996). In Collis and Rukstad (2008) view, organizations create or sustain competitive advantages through careful analysis, decision-making, and planned action – strategic management. The authors consider strategic management a process whereby organizations integrate examination and analysis. When organizations carefully examine their mission, values, and visions, they increase their chances of clearly analyzing those environmental factors with potential to impact the company’s strategic objectives (Collis & Rukstad, 2008). This paper will examine the blue ocean strategy theory, the strategic management process, strategic innovation, and strategic planning. Next, this paper will evaluate the application of the blue ocean theory to the Southwest Airlines business model. Lastly, this paper will review the strategic analysis Southwest Airlines, to include providing an assessment of the airlines’ strengths, weaknesses, opportunities, and threats in relation to blue ocean strategy implementation.
Blue Ocean Strategy
Businesses have two types of markets they can target for profits
Kim and Mauborgne (2004) believe opportunities exist for organizations to grow rapidly, create market value, and distance themselves from their competitors at the same time. These opportunities exist in the form of untapped, slightly or noncompetitive markets called blue oceans.
Developing an untapped market requires strategic planning. Thompson, Peteraf, Gamble, and Strickland (2011) considers strategic planning the layout for directing future business. Laying out the plan requires organizations to initiate an interrelated five-step process called the strategic management process (Thompson, Peteraf, Gamble, & Strickland, 2011). Porter (1996) believes the essence of strategic management involves studying why some companies outperform other. Through careful study, a company should determine how to compete successfully and obtain sustainable advantages (Porter, 1996). In Collis and Rukstad (2008) view, organizations create or sustain competitive advantages through careful analysis, decision-making, and planned action – strategic management. The authors consider strategic management a process whereby organizations integrate examination and analysis. When organizations carefully examine their mission, values, and visions, they increase their chances of clearly analyzing those environmental factors with potential to impact the company’s strategic objectives (Collis & Rukstad, 2008). This paper will examine the blue ocean strategy theory, the strategic management process, strategic innovation, and strategic planning. Next, this paper will evaluate the application of the blue ocean theory to the Southwest Airlines business model. Lastly, this paper will review the strategic analysis Southwest Airlines, to include providing an assessment of the airlines’ strengths, weaknesses, opportunities, and threats in relation to blue ocean strategy implementation.
Blue Ocean Strategy
Businesses have two types of markets they can target for profits