Description of blue ocean strategy and its importance Blue Ocean Strategy is a term that describes how companies customarily work in "red ocean" conditions, where businesses viciously fight against each other for a share of the marketplace. Instead, according to the blue ocean strategy, organizations should find a way to work in a marketplace that is free of competitors (Arline 2015). Blue Ocean Strategy is where leading companies will prosper not by fighting competitors, but by creating "blue oceans" of recognized market space ready for growth (Arline 2015). Blue Ocean Strategy is important because it is easier for many companies to produce more of their product because of technology advances. It is also important to companies to enter the blue ocean to find new opportunities.
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?
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.
Case Analysis of Blue Orb Key Persons: Mike Bowers the Chief Marketing Officer (CMO) and Pete McAlindon the founder and Chief Executive Officer Key Issue: The key issue based on which the decision needs to be made is whether or not the company should outsource their marketing plan of launching a competition to FightWare and incur a expense of $25,000 or the alternative being that they design the competition in-house. Basic Facts: The Company is aiming at increasing their revenue by actually transforming the free subscribed users, of the software, to paid and registered users. For that reason they require focused marketing strategy in order to gain that kind of customer attention. The management of the firm hence is considering the option of outsourcing a unique strategy to another organization called FightWare. According to this unique strategy the company is considering the option of arranging a nationwide competition through FightWare, which will cost them about $25,000.
The company really needs a complete overhaul so that it can gain a sustainable, comparative advantage in the marine anchor market. Question 1 Based on the information presented in the scenario/case study discuss Albatross Anchor’s competitiveness in relation to (please address all items in the below list and provide support for your conclusions): 1. Cost a) Cost or Production: Operational inefficiencies have caused production costs at Albatross Anchors to be a lot more than they should be. This means they have a smaller profit margin, inefficiencies eating up their potential profits. They could be making more money per unit if they would tighten up their processes.
These scenarios made it possible for the company to enjoy high profit margins. The situation here and the purpose of the paper is to explore alternative ways that the Guillermo Company can use some financial concepts to improve the chances of the company surviving is predicament. For the Guillermo Company to be able to weather these new forces of competition and resist extinction, the company must improve their profitability, match competitors on wages scales and, also eliminate any wasteful operation process. Solutions
Innovation and Change Chantelé Shaw QHT1 Task 3 Innovation and Change Student # 000258452 6/15/13 1|Page Innovation and Change The Concept of Innovation in Business Entrepreneurs use innovation as a tool to exploit change and take that opportunity to show a new business style or service. Innovation can be learned and practiced as it is a discipline. However there needs to be a sense of purpose when entrepreneurs are searching for their sources of innovation. Once the sources are found they will need to learn how to successfully apply those principles. Business opportunities are chances to do things better and differently.
Blue Ocean Strategy Paper Julie Rose Howdyshell MKT 421 Week 4 Paul Sage Blue Ocean Strategy The blue ocean strategy in marketing is a unique approach to building a customer base. Rather than try to compete in a crowded marketplace with existing companies, a blue ocean strategy looks to build an entirely new market segment that has not other existing firms. With the rapid growth of technology and globalization, the importance of a blue ocean strategy has grown in recent years. The following essay will analyze the blue ocean strategy and offer suggestions on how it can employ in the modern business environment. What is a Blue Ocean Strategy in Marketing?
The improvement of South American economy means that the consumerism capacity will be bigger. Therefore, it will be seen as a substantial market for big industries around the world. South American has a lot to offer, and all of this can affect the Global Economy. In first place, we have South America geographic location. Its location is really important for South American development and for its impact or effect it has on the Global Economy.
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.