Blue Ocean Strategy Paper Essay

There has been a lot of discussion and consideration when it comes to the trigger-happy or dispirited ocean approach to foodstuffing strategies for championshipes two al clear established and new-madely founded. flushed oceans refer to the kn have got foodstuff plaza all the industries in foundation today. In personnel casualty oceans, exertion boundaries be clearly delineated and accepted, and the competitive rules of the game be known. Companies try to travel by their rivals to grab a greater share of existing demand, usually finished marginal changes in offering level and price. As the market property raises crowded, prospects for profits and growth are ablaze(p)uced products become commodities, and cut-throat rival turns the red ocean bloody.On the other hand, the blue ocean approach uses a strategy to cause new demand. Therefore, under the reconstructionist view, attention shifts from supply to demand, from a focus on competitor to a focus on judge innova tionthat is, the creation of innovative value that will unlock new demand. With this new focus in mind, it is doable to systematically look crossways established boundaries of competition and reconstruct existing elements in different markets to create all new market quadrangle. (Kim, 2005)Blue maritime Strategy & immensenessCompeting in overcrowded industries is no way to sustain high performance. The real probability is to create blue oceans of uncontested market quadriceps femoris, making the competition irrelevant. A blue ocean strategical move can create chump equity that lasts for decades. A blue ocean is created in the region where a companys actions favorably affect both its cost organise and its value proposition to buyers. Cost savings are made from eliminating and reduce the factors an industry competes on. Buyer value is lifted by raising and creating elements the industry has never offered. Over time, costs are reduced further as scale economies kick in, due to the high sales volumes that superior value, without the competition generates.Blue Ocean MoveThe blue ocean strategy is unrivaled of the latest business ideas in the world. Even though it was created recently, it immediately gained quotation among experts, and presidents and directors of many companies. Blue ocean strategy is a strategy that differs significantly from most business strategies. Blue ocean, denotes all the industries not in innovation todaythe unknown market space, where there is no current competition. In blue oceans, demand is created rather than fought over. There is opportunity for growth that is both profitable and rapid. Blue ocean is an analogy to describe the wider, deeper potential of market space that is not yet explored. EBay would be a good fashion model of blue ocean strategy. EBay was the first of its kind to initiate a aid of online auctions reaching an enormous target market that had never been targeted before in this manner by offering an onl ine auctioning renovation to customers from the convenience of their homes.Alternative bolshie Ocean MoveRed oceans are all the industries in existence todaythe known market space. In the red oceans, industry boundaries are defined and accepted, and the competitive rules of the game are known. Here companies try to excel their rivals to grab a greater share of product or service demand. Red ocean strategy is designed to gain the greatest possible number of customers and to sell as many of their products. Companies that select this strategy do not create a new service without competition, they advertise their products in every way possible. The fight between competing companies is constant. Some of these companies are onerous to create exclusive product lines to increase the range of their brand nevertheless never consider stepping outside of their comfort zone and bringing a new strategy to the table by creating a service that has not yet been marketed in order to increase prof it without the worries of competition. An example of a company that uses the red ocean strategy would be Nike.Nike jumped into the market ready to compete amongst already existing competitors not on a relegating to create a service that was without competition. Once Nike was in the market and preceding(prenominal) its competition, it could now venture into other ocean strategies to continue to be innovative, creative, and abide a service to their current market as well as look for services to uncharted markets. Red OceanPros If you are a successful company like Nike, you are already at the filch of the chain and your services are still continuously sought later on so providing a new service that doesnt currently exists doesnt necessary mean profit and sustainability. Nike wasnt the first athletic sideslip provider. There was competition that existed before Nike became known.Nike was able to enter a market using the red ocean strategy approach and add creative thinking and inno vation to an athletic industry that was already established and climb to the pass along without the blue ocean approach. Red Ocean Cons As the market space gets crowded, prospects for profits and growth are reduced. Products become commodities or niche, and cutthroat competition turns the red ocean bloody. Hence, the term red oceans. The red ocean, players want to let out products and provide services cheaper and better than the competition but that doesnt everlastingly mean the product they offer are in-fact better than products of their competitors.ConclusionA company must master its traditional markets using conventional strategic planning tools. It will always be a competitive benefit to successfully incorporate the red ocean approach and beating the competition. Red oceans will always matter and will always be a fact of business life. Businesses that tend to only focus on the red ocean approach must accept the key constraining factors restrain terrain and the need to beat an enemy in order to succeed and to cross the distinctive strength of the business world the capacity to create a new service and gain a new market space that is uncontested.In order to sustain high performance, companies must create their own blue oceans, and make the competition irrelevant Even though the blue ocean strategy is uncharted territory, and no measurements or feedback exists, it can be considered a risky approach thats why many businesses today, get in business using one approach and sustain business or rebrand their business with the implementation of both strategic approaches. (Kim, 2005)ReferencesBlue Ocean Strategy. (2014). Retrieved from http//www.blueoceanstrategy.comKim, W. C. (2005). BLUE OCEAN STRATEGY. Retrieved from https//ecampus.phoenix.edu/secure/aapd/cwe/citation_generator/web_01_01.asp