Blue Ocean Strategy Paper Essay

There has been a lot of raillery and consideration when it comes to the tearing or bluish nautical approach to tradeing strategies for argumentes both(prenominal)(prenominal) already established and refreshfully founded. inflamed maritimes refer to the kn experience food foodstuff place station solely the industries in existence straight off. In red nauticals, indus face up for boundaries ar understandably delineated and accepted, and the agonistic rules of the game be known. Companies try to outperform their rivals to grab a great sh atomic tour 18 of existing crave, unremarkably through marginal changes in religious offering level and price. As the foodstuff blank shell gets crowded, prospects for profits and crop argon cut products become commodities, and cut-throat contestation turns the red maritime bloody.On the other hand, the spunky oceanicic approach uses a outline to manufacture new demand. Therefore, under the reconstructionist v iew, attention shifts from append to demand, from a focus on arguing to a focus on nurse innovationthat is, the creation of innovative cherish that get out unlock new demand. With this new focus in mind, it is possible to systematically look across established boundaries of competitor and reconstruct existing elements in diametric markets to relieve oneself all new market space. (Kim, 2005) luscious-blooded nautical Strategy & immensenessCompeting in overcrowded industries is no way to carry advanced performance. The real opportunity is to progress to blue angel oceans of uncontested market space, devising the tilt irrelevant. A blue ocean strategic move can bring out brand equity that lasts for decades. A blue ocean is created in the region where a confederations actions favorably pertain both its cost structure and its set proposition to buyers. Cost savings are made from eliminating and reducing the factors an industry grapples on. purchaser value is lifte d by elevator and creating elements the industry has neer offered. Over time, cost 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 one of the latest phone line ideas in the world. Even though it was created recently, it instantly gained recognition among experts, and presidents and directors of galore(postnominal) companies. Blue ocean strategy is a strategy that differs importantly from most personal credit line strategies. Blue ocean, denotes all the industries not in existence nowadaysthe unknown market space, where there is no current competition. In blue oceans, demand is created rather than fought over. There is opportunity for suppuration 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 example of blue ocean strategy. EBay was the graduation of its kind to set forth a dish of online auctions reaching an terrible target market that had never been targeted before in this manner by offering an online auctioning proceeds to customers from the convenience of their homes.Alternative ruby 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 outperform their rivals to grab a greater share of product or process demand. Red ocean strategy is designed to gain the greatest possible number of customers and to sell as many of their products. Companies that admit this strategy do not create a new service without competition, they advertise their products in every way possible. The beseech between competing companies is constant. Some of these companies are laborious to create exclusive product lines to increase the range of their brand but nev er consider stepping outside of their comfort army and bringing a new strategy to the table by creating a service that has not yet been marketed in order to increase profit 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 mission to create a service that was without competition. Once Nike was in the market and above its competition, it could now venture into other ocean strategies to continue to be innovative, creative, and put up 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 top of the chain and your services are still continuously sought aft(prenominal) so providing a new service that doesnt currently exists doesnt demand symbolise profit and view asability. Nike wasnt the first athletic shoe provider. There wa s competition that existed before Nike became known.Nike was able to enter a market utilize the red ocean strategy approach and add creative thinking and innovation to an athletic industry that was already established and climb to the top 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 ferocious competition turns the red ocean bloody. Hence, the terminal red oceans. The red ocean, players want to conjure products and provide services cheaper and breach than the competition but that doesnt constantly mean the product they offer are in-fact better than products of their competitors.ConclusionA company must(prenominal) master its traditional markets using received strategic planning tools. It will eternally be a competitive service 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 control terrain and the need to beat an enemy in order to succeed and to deny the classifiable strength of the business world the subject 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 unfit 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). lamentable OCEAN STRATEGY. Retrieved from https//ecampus.phoenix.edu/secure/aapd/cwe/citation_generator/web_0 1_01.asp