MBA 667: Leaders on Leadership (Fall 2012) Book Review Blue Ocean Strategy: How to create uncontested market space and make the competition irrelevant. By W. Chan Kim and Renee Mauborgne Blue Ocean Strategy is about creating new markets which make competition irreverent. Kim and Mauborgne present the argument that in order for a company to break-out from the competition and sustain success, they must redefine the boundaries of the market and create their own “blue ocean.” In this newly formed blue area without the “bloody” competition in the red ocean, the innovative company can now capture new demand and reap success. The authors have created a very clever metaphor which ensures the readers want to be in the nice, clean, shimmering, blue ocean vice the “bloody” red ocean. There are six principles of the blue ocean strategy: (1) Reconstruct market boundaries, (2) Focus on the big picture, not the numbers, (3) Reach beyond existing demand, (4) Get the strategic sequence right, (5) Overcome key organizational hurdles, and (6) Build execution into strategy.
The important business competitive strategies are lower cost strategy and differentiation strategy. The lower cost strategy helps an organization compete efficiently in the industry by designing, producing and marketing a similar product from its rivals but at a lower cost. Differentiation strategy helps an organization develop and market a different product from its rivals. Our team understands these two competitive strategies because we can relate with always being different to stand out or try to purchase the same products and services at a lower cost instead at a higher cost (Wheelen & Hunger, 2014). To create value and sustained competitive advantage through business strategy, organization must be able to design, produce, and
Southwest Airlines is widely recognized for its advertising and the rhetoric used in them. A great example of an effective print advertisement is of a Southwest Airlines jet flying in a blue sky over an endless white maze. In the bottom right is the company’s logo. The top in black lettering states “The shortest distance between two points is a straight line.” In the middle, below their planes, it says “Don’t tell our competitors.” Finally towards the bottom right below the logo it has the airline’s slogan from the time of the advertisement, “Simply fly.” The advertisement is effective because of the company’s credibility, the simplicity of the advertisement, and that flying with Southwest Airlines is easier and more enjoyable than with their competitors. The advertisement can easily be identified as one for Southwest Airlines because the company’s logo located in the bottom right.
M2. Case Study Analysis - Prince Sports, Inc. Quick and fast changes in an environmental market place such as social growth (globalization and the growth of social networks), economic instability (crises), industrial progress, fast growing competitive world and firm marketing regulatory mainly have an effect on the work of most of marketing companies or marketing and brand image divisions of the companies. In order to put into practice a winning marketing plan or a boost in sales and customer awareness companies have to stay in pace with the new marketing environment and take into thought every likely detail that might help out or ruin the image of a company or product. This case study will examine the marketing principle and vision in the background of Prince Sports, Inc. The main emphasis of the case study is Prince Sports, Inc segmentation and positioning.
From the perspective of company, Blue ocean strategy need the companies have differentiation strategy to find value creation. Also, the companies need to find a new market which has relative little competition and have enormous profit and potential. In Blue Ocean, due to there almost have no rivals in the industries, companies can earn a very large market which is benefit for the companies to control the costs of product and human resources. At the same time, the most important thing in Blue Ocean is to find and create new customers’ need and to constantly keep the product having value creation in order to meet customers’ requirements. Red oceans denote all the industries in existence today which is a fierce competitive market.
Business information enables a company to obtain competitive advantage and promote efficiency. Any business uses information to manage not only what is currently happening in the organisation but also to plan for the future and ensure its survival. With the advance of technology, communication methods have changed significantly. Scenario You work for a large marketing firm called ‘Magic Marketing & Communications your newest and most prestigious client is John Lewis. Assessmentand GradingCriteria | TASKS | P1; P7 M1; D1 Report which includes aTable with illustrations | DEADLINE FOR TASK 1: Week commencing 13th October 2014 DEADLINE FOR TASK 1: Week commencing 13th October 2014 TASK 1 – Business Information And CommunicationsP1: Explain the different types of business information, their sources and purposesP7: Outline electronic and non-electronic methods for communicating business information, using examples for different kinds of audienceMake a TABLE IN YOUR REPORT in landscape format with the following headings.
Research Methodologies Paper July 16, 2012 MKT/450 Ted Framan Research Methodologies Given the nature and ever-growing complexity of today’s global market place, it is imperative that organizations are equipped with appropriate and effective market research in order to make the right marketing decisions. The importance of marketing research is immeasurable; it helps marketing managers make better judgments that take into account cross country differences and similarities. In addition, marketing research helps marketing managers gain support from the local subsidiaries for proposed marketing decisions (Keegan & Green, pp. 196-221, 2008). American company XYZ, Inc. has decided to market their top product, all-natural
Consumers are demanding chemical free homegrown products. It is easy for consumers to find other companies who can provide comparable services. However, new technology is only a fraction of what makes Gene One stand out over their competitors. Consumer loyalty and strong leadership will give them a major advantage. The challenge for Gene One will be to maintain their cohesiveness as a management team and maintaining a high level of social responsibility while expanding the company to a publicly traded organization.
The strategy is to pursue differentiation and low-cost simultaneously. This will help increase demand and capture demand from new customers. The blue ocean strategy is important because it helps companies find ways to reconstruct market boundaries and gain new customers. Another approach opposite from the blue ocean strategy is the red ocean strategy, which involves only differentiation or low-cost, not both. The red ocean strategy is used in existing markets.
This is accomplished through more effective products, processes, services, technologies, or ideas that are readily available to markets, governments and society. Roberts (1988), defines innovation as the successful implementations and exploitation of a new idea or invention . Innovation is the main idea in shaping corporate life and helping companies to adopt various strategic options. It helps to reduce total cost of production, increase income avenues, and maintain efficient operating systems. Innovative businesses also benefit the economy: delivering added value; high quality jobs; successful business; better products and services for customers; and new, more environmentally friendly, processes.