What is a Blue Ocean Strategy in Marketing? Companies must consider the four Ps of marketing when developing a new offering, which include product, placement, price, and promotion. To compete successfully; it is necessary to give consumers a certain value proposition. For example, a firm can offer a product at a lower price or at a higher quality than what is presently offered by other firms. But what if a firm could avoid having to deal with competition altogether?
It is also important to companies to enter the blue ocean to find new opportunities. Blue Ocean Strategy makes the competition irrelevant. Product or service that might be considered a blue ocean move and why There are several products and services that might be considered Blue Ocean. Cirque du Soleil is an example of Blue Ocean Strategy because of how they are blending opera and ballet with the circus presentation while removing star performers and animals. This is considered a Blue Ocean because it was previously an unknown market space, and now it is well known throughout the world.
What's a red ocean? -the rivalries we understand in known industries -You accept key constraints that define your industry → boundaries are defined and accepted, competitive rules are understood What is a blue ocean? -Doing business where there is no competitor-- finding your own space; demand is created rather than fought over. -You don't accept that it is difficult to create new market space. How is a blue ocean created?
Original Penguin represent a cultural change for Perry Ellis International in the sense that it is the first time that Perry Ellis has reintroduced a old brand which they had acquired years ago and reinvent it to attract a different target audience. As mentioned in the video, the fashion industry is now dictated by the demands of the younger consumers. The things they seek in purchasing apparels are fashionable, affordability and not only wearable during sports. Chris Kolbe reintroduction of Original Penguin with his ideas and innovation into the market has not enable the Penguin logo apparel but also Perry Ellis to attract young consumers below the age of 30 which previously was not possible. By granting Chris Kolbe full control of the Original Penguin
Week Two Learning Team Reflection During Week 1, we discussed the basic components of business research. We were shown how to recognize dilemmas and address issues related to corporate America, such as declining sales, increase in costs and any other issues that may have adverse impact on business. With that, business research becomes a problem solving tool in the decision making. However, ethics must first be weighed to ensure the social bottom line and productivity remains at its highest. Unethical behavior undermines positive gains.
3. Compare and contrast how management diagnosed and approached change at the two (2) companies and indicate which company dealt with resistance to change in a more effective manner. Justify the reasoning. 4. Consider a situation as a consultant with Ajax Management.
Explain why change happens in a business environment. You should include at least three reasons in your answer. An impact of external and internal factors implements respectively reactive and proactive changes in a business environment. In the area of change management it is indicated by the PEST acronym which summarises the four main influences causing changes. • Political • Economical • Social • Technology ”The PEST analysis is a useful tool for understanding market growth or decline, and as such the position, potential and direction for a business.
As the market space gets crowded, prospects for profits and growth are reduced. Products become commodities, and cutthroat competition turns the ocean bloody. In contrast, blue oceans is the unknown market space where it is unaffected by competition and demand is created rather than fought for. In blue oceans, competition is not relevant because the rules or barriers to the market space is not set yet and is often waiting to be set. In my opinion, by creating Blue Ocean Strategy, you can leave the competitive and bloody Red Ocean and achieve long-term success in a new market space.
Strategic Architecture To bring a corporation to real future from foresight, the two theorists Gary Hamel & CK Prahalad say it is the next action should be done to craft a ‘Strategic Architecture’ instead of strategic planning. Strategic architecture should describes “which new benefits, or ‘functionalities’ (not present product) will be offered” for the future, and “on what new competencies will needed to create those benefit,” and “how the customer interface will need to change to allow customers to access those benefits most effectively”. They also indicate it is impossible to create a detailed plan for a ten- or fifteen-year competitive, which is traditionally considered in a strategic planning. They cite NEC, a Japanese electronics company, as an example of a strategic architecture. NEC, initially a supplier of telecommunications equipment, dreamed being a leader in ‘C&C,’ computers and communication in 1980s.
Given today’s realities, certainly competition is important for a firm’s success but “doing the same thing better is no longer good enough for wooing, winning, and retaining customers” (Vandermerwe, 1995, p.79). The blue ocean strategy “involves not competing, but making the competition irrelevant by creating a new market space where there are no competitors” (Kim and Mauborgne, 2005, p.