June 5th, 2014
Blue Ocean Strategy is a marketing notion established by W. Chan Kim and Renèe Mauborgne. This new marketing concept consists of, two different portions of the market, which are blue and red ocean. The paper will aim to discuss in depth the understanding behind the differences of these two concepts. Furthermore, the paper will focus its study on Chrysler Group, more specifically on Fiat and Dodge. The aim is to illustrate that Blue ocean strategy can influence the market industry where Chrysler Group is situated, and turn the company in a more profitable organization.
Blue and Red Ocean
To start of with, it’s crucial to acknowledge and comprehend the differences between Blue Ocean and Red ocean. Red strategy is where all the competitors try to introduce and promote their product with the purpose to make the product stand out from the others. However, it’s important to highlight that this strategy has a high competition and most of the times companies fight intensively in order to attract the consumers, and take advantage of the fact that in the market there is a high demand for those specific goods. On the other hand, Blue ocean aims totally to different objectives. Blue ocean emphasizes in generating a new demand within the market instead of competing with other companies. This helps the company to have a market share that was never been reached making it difficult for other competitors to contend (“Blue Ocean Strategy”, 2012).
Chrysler Group LLC
Chrysler Group LLC is known to be one of the leaders in the automobile industry. Chrysler represents other brands in the US, such as Dodge, Jeep, and Fiat. The automobile industry is a very competitive market in the United States, because companies like Ford Motor and General Motors also have a big share in the industry. It is clear that these three corporations are all fighting over the same market share. However, nowadays competition has...