Blue ocean strategy is both a call-to-action and a guide-to-action its call to action has been taken up by businesses, by governments, and by individuals all balance both red and blue ocean initiatives another key update outlines the most-common “red ocean traps. Blue ocean strategy essay sample blue ocean strategy is a concept written to question the standard five forces concept of marketing the idea is to move out of the quote “red ocean” where there are sharks always competing into the “blue ocean” competition of your own where other competition is nonexistent. Of blue ocean strategy” and it is the “strategic move” that allows a company to create a blue ocean typically, companies in the red ocean pursue incremental improvements for.
In contrast to red ocean which emphasizes either on cost or differentiation strategy, blue ocean suggests it is possible to attain both simultaneously pursuing this strategy is able to create high barriers to entry. Red ocean strategy blue ocean strategy compete in existing market space create uncontested market space beat the competition make the competition irrelevant. Blue ocean strategy paper mkt/421 july 21, 2014 anatomy of blue ocean strategy 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. The first principle of blue ocean strategy is to reconstruct market boundaries to create blue oceans so that it doesn't face any level of competitions and existence of competitors is zero in order to create blue ocean, it becomes necessary to identify the threats and difficulties that make red ocean such a difficult world to live in.
Blue ocean strategy paper xxxxxxxx mkt 42110/13/2014 mr boswell blue ocean strategy paper there has been a lot of discussion and consideration when it comes to the red or blue ocean approach to marketing strategies for businesses both already established and newly founded. Figure 3: red ocean versus blue ocean strategy (own figure, taken from: kim, w c, mauborgne, r (2005b), p 18) 32 analytical tools and frameworks in the following subchapters a description of tools and frameworks of the bos are given as well as the three essential characteristics of a good strategy. Blue ocean strategy paper a descriptions of blue ocean strategy and it's importance blue ocean is a slang term that comes from the book the blue ocean strategy, by w chan kim and renee mauborgne.
Blue ocean strategy essay red and blue oceans red oceans represent all the industries in existence today-the known market space in red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are well understood here, companies try to outperform their rivals in order to grab a greater share of existing demand. This is the first chapter of blue ocean strategy this book is written by professor w chan kim and renee mauborgne in 2005 from harvard business school they research for around over 20 years and sum up a theory of blue ocean. In this seminal work blue ocean strategy, the authors define a blue ocean (a completely new market) and contrast that with a red ocean (competition in an existing space) companies often bring innovations that replace existing products/services. In this essay i will critically analyze and evaluate the blue ocean strategy its value to small-to-medium size enterprises and how it can create a demand in today’s hyper-competitive market space i will also discuss the key elements required to develop the blue ocean strategy.
Blue ocean strategy, a book by w chan kim and renee mauborgne, develops and explains how to beat the competition by reaching beyond it into new unexplored markets the authors use the metaphor of the blue ocean as a direct contrast to red oceans. What is a blue ocean strategy (bos) •bos is the simultaneous pursuit of differentiation and low cost •the aim of bos is not to out-perform the competition in the existing industry, but to create new market space or a blue ocean, thereby making the competition irrelevant. Blue ocean stratgy (essay sample) instructions: please read the article “ blue ocean strategy “ page 123 on book hbr's 10 must reads by michael e porter by harvard business review and write a 1 page aprox 300 words thank you source. In this essay, the first part will provide an overview of blue ocean strategy how to create a blue ocean and what a cornerstone of blue ocean strategy is are the important things which the author wants companies need to pay attention.
Example of red ocean moves red ocean strategy is the complete opposite of blue ocean strategy it is the alternative that creates a product in an already established marketplace there are a few benefits to going this route. Red ocean strategy blue ocean strategy •• compete in existing market space compete in existing market space •• create uncontested market space create uncontested market space •• beat the competition beat the competition •• make the competition irrelevant make the competition irrelevant •• exploit existing demand exploit. Red ocean market strategy can be perceived an environment in the market space where competition is a common phenomenon among the various industries the rules and boundaries of each industry are well marked out to avoid unfair competition.
The following essay will analyze the blue ocean strategy and its importance, while providing a product or service that might be considered a blue ocean strategy lastly, an alternative red ocean move for the same product or service along with the pros and cons of that strategy will be discussed. The maturity of an industry has brought a company swimming in a red ocean, which means price war strategy, according to a bestseller book titled blue ocean strategy that is written by w chan kim and renee mauborgne. Learn to apply blue ocean strategy to your business download the free map – download our 12 week blue ocean strategy navigation map and receive a series of tips to how to apply it to your business webinars – attend a free webinar on how to prepare for your own blue ocean strategy project. What is blue ocean strategy by nattida sae-iw mba student what is blue ocean strategy let’s start with the metaphors to understand the term of blue ocean, imagine a market universe composed of two sorts of oceans: red oceans and blue oceans.