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Blue ocean strategy book summery Essay Example

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Blue ocean strategy book summery

The author envisages the red ocean strategy as a gory competition to acquire a bigger market share of the product or service. The authors describe the main differences between the red ocean strategies and the blue ocean strategies. The approach towards market space whereby the red ocean strategies focuses on competing in existing market space while the blue ocean strategy relies on creating new uncontested market space which involves a great deal of innovation (Kim & Mauborgne, 2013). The second difference is that the red ocean strategy aims at beating the competition while the blue ocean strategy involves using innovation to make the competition powerless and irrelevant. The third difference is that while in red ocean strategy the aim is to exploit existing demand, the blue ocean strategy aims at creation of new products to meet new niches in the existing market.The red ocean strategy is an unfavorable method of approaching the market competition due to its negative impacts on the profitability of the company. The effect of lowering the prices of commodities and services is continuous and gradual. The blue ocean strategy locks the company in a continuous battle for market space that in the end becomes tedious. The chance of success reduces each day because several new companies are entering the market, making the competition strenuous. This can eventually lead to very minimum profit margins because the supply has surpassed the demand.Away from the issues affecting the red ocean strategy, the blue ocean strategy involves diverting competition by pursuing new markets through diversification. In the blue ocean technology, the term is a representation of a new market space free from the bloody competition in the red ocean strategy. For example, a firm offering mobile phone communication services in an environment of intense competition can search the market for gaps. Other services vital to the population might be missing, for example, data services of mobile money transfer. In this way, the company will appear to the customers as a one-package service provider and a suitable choice. This can be achieved without any price reductions. According to the Harvard business review, blue oceans “denote all the industries not in existence today” (Harvard Business review, 2004). Because the demand is created, there exists growth opportunity which is profitable and rapid. The Harvard

References

Kim, C. W. & Mauborgne, R. (2013). Blue Ocean Strategies. Massachusetts: Harvard

Business Review Press.

Harvard Business review. (2004). Blue Ocean Strategy.

Retrieved from http://hbr.org/2004/10/blue-ocean-strategy/ar/1

Media Marketing organization. (2012). Benefits of Blue Ocean Strategy. Retrieved from http://www.fusemediamarketing.com/benefits-of-blue-ocean-strategy/

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preview essay on Blue ocean strategy book summery
  • Pages: 4 (1000 words)
  • Document Type: Essay
  • Subject: Marketing
  • Level: Masters
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