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.
Blue Ocean Strategy MKT/421 To have a market with no competition is a blue ocean strategy and the goal of any company. A blue ocean strategy is the name given to new goods or services that have no competition in the marketplace. According to "Harvard Business School.com" (2014), "Blue oceans denote all the industries, not in existence today—the unknown market space, untainted by competition. In blue oceans, demand is created rather than fought over." The importance of the blue ocean strategy is that it keeps companies looking for untapped markets, which will provide new goods and services for the consumer.
Blue Ocean Strategy Paper John Doe MKT/421 June 9, 2014 John Doe Blue Ocean Strategy Paper Relative to business, understanding the concepts of blue ocean strategy holds great importance. This paper describes blue ocean strategy in order to better understand its significance. Also outlined in the text is an example of a product that might be considered a blue ocean strategy and why. An explanation of a red ocean move for the same product, along with the pros and cons of that strategy, concludes the writing. Blue ocean strategy is important to business professionals, because it explains a simple business strategy with the potential for great success.
Background Recovered is considering establishing a greater presence in Kava. An evaluation of what is best for the company and what is good for the people of Kava will need to be completed to properly evaluate the challenges involved with locating a branch office in the Pacific. After a brief description of the Island, its people, resources and potential risks, by the Director of Strategic Planning, the first impression would be to forget the idea of locating an office in this location. The key to the evaluation is to look at the possible risks and turn them into opportunities. The company is looking to relocate to the island of Kava in order to increase the company’s international growth potential.
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.
The system will be backwards compatible with the previous console, the Wii. Being that Nintendo has continued to be outsold by its competitors in 2010 and 2011, the Wii U is a smart move for Nintendo. Running another low-end encroachment (Wii U) could be Nintendo’s successor of the Wii. Rather than sustaining their current the technology, the Wii, by just making small incremental improvements, creating a disruptive technology could help Nintendo jump the curve and turn their current sales around. The gaming industry has five to six year “generations” of introducing new technology to the market.
| Roles and Behaviors | Entrepreneurs | The role of the entrepreneur in my business would be to make the public aware of us as a new company, and what we offer. More than likely I would try to entice current employees of Microsoft and Sony to come work for me, to have people with a background and experience in launching a new console. I think this is important because they will have a good idea of what marketing techniques to use and which ones are have less impact. The goal is to get people to stop buying
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.
Companies continue to develop, operations progress and market expands. History has shown that the ability to produce fresh industries and reproduce current ones is underrated. 2.0 PHILOSOPHIES OF BLUE OCEAN STRATEGY 1. To restructure market boundaries. 2.
Product Market Strategy (Market Adv Test) | In order to be innovative and efficiency, Tesco should design the firm that allocates more attention to operating priority and finding source of competitive advantage among their business units. By setting this design, Tesco should come up with a new strategy for example: The differentiation focus strategy which focuses on just one or a small number of target market segments. The special customer needs of the segment mean that there are opportunities to provide products that are clearly different from competitors who may be targeting a broader group of customers and therefore, the board executive should create a value in their unique operating priority then it will bring Tesco a competitive advantage. | Corporate Strategy (Parenting Adv Test) | Tesco should decide which product market arenas they should compete in. Tesco have multiple business unit to sell such as fresh food, groceries, household stuffs, mobile phone, Tesco bank, etc and in this case, the parent company (which is Tesco’s board) should be able to explore and discover each of business unit resources and capability and make a good coordination with each of them so that the synergies between the parent company and business unit will be created.