This essay Blue Ocean Strategy Paper has a total of 1017 words and 6 pages.
Blue Ocean Strategy Paper
June 1, 2015
Blue Ocean Strategy Paper
Many companies entering the business world, whether offering a product or service, find the progressiveness of the revolutionary business atmosphere to be rather problematic. Opposition, contention, and competitive space in the market are factors that many companies are discovering to be challenging in the succession and relevancy of their freshly offered product or service. With the use of the blue ocean strategy, establishing the appropriate environment that paves the way to success can be an enormous relief for any company.
Blue Ocean Strategy Description and Importance
Kim and Mauborgne (2004) describe the blue ocean strategy as having the ability to create market space without competition in order to collect the most profits. In an industry that has become fully established, companies are continually competing for every space available in the market. The blue ocean strategy eliminates the struggle for market space by providing companies with the proper education to become pertinent, essential, and lucrative. In the world of business, a blue ocean refers to open water, meaning a market without competitors. Competition can be expensive for a company, and without that added expense, it has the ability to operate, expand, and create innovative ideas, which ultimately allows the company to capitalize profits and utilize every possible opportunity that arises. In order for a company to cease the rivalry with competitors, they must switch motives. This creates a blue ocean because a new demand is created, transforming the competition into irrelevant sources. The blue ocean strategy utilizes analytical instruments such as value pioneering, differentiation, and lower costs, as the jumping off point in the blue ocean process. Four principles are the key elements in the next steps of the blue ocean process. Those principles, how the market space without competition is created, preserving that the ‘big picture’ remains in focus, aiming beyond the current demand, and keeping to the strategic arrangement, allow a company to conquer risk-causing obstacles leaving the structure of the current market open for tackling. Fair process and implications of leadership are dealt with, including organizational hindrances. These hindrances, whether political, motivational, or cognitive, can deter a company from its path to success by way of the blue ocean strategy.
An Example and Why
The blue ocean strategy has been the innovative plan of action for many companies in their quest for total industrial domination. 3M is one company that has become particularly innovative in leading the way.
3M has led the way for many years in a wide variety of innovative products by creating products that are reverent in a very competitive market. Focusing on such a huge company, narrowing 3M Corporation down to just the division of stationary products is a difficult task. Such innovations that include Post it note, Scotch Bright, Scotch tape, along with many, many other innovative product 3M leads the way with useful innovations that pave the way using the blue ocean strategy. By implementing key concepts, value innovation, and differentiation, 3M created products that fit both low cost, and create an open market because such products were not available. Next by addressing contested market space, 3M reconstructed market boundaries, focused on the big picture, created a product that addressed existing demand placed strategic sequence that fit to the 3M label. Narrowing down to a single product, Post-it-note by 3M, fit all of the blue ocean strategy because it was the first of its kind and created open water for the 3M corporation to expand and maximize revenues. Being introduced in 1977, Post it notes is a piece of notepaper with an adhesive strip of glue on the back that temporarily attaches the note to documents or surfaces. Post it notes were the first of their kind, and is a prime example of how the blue ocean strategy works fitting all key elements to attract customers with just a piece of paper.
Red Ocean Strategy
The Red Ocean strategy focuses on the opposite of the blue ocean strategy. A company implementing a new product or service into a crowded marketplace can difficult. Such things as similar products and lower cost points can be unattractive for a product or service. Furthermore, there is a way of manipulating a mature market to become relevant when competing
Topics Related to Blue Ocean Strategy Paper
Marketing, Blue Ocean Strategy, Marketing strategy, 3M, Product marketing, Porters generic strategies, W. Chan Kim
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