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 no other existing firms. These factors include the type of product or service they would like to offer, the target market, as well as the price.
Blue Ocean Strategy — Introduction 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 be employed in the modern business environment.
What is a Blue Ocean Strategy in Marketing?
Companies must consider the four Ps of marketing when developing a new offering, which include product, placement, price, and promotion. In order to compete successfully, it is necessary to give consumers a certain value proposition. For example, a firm can offer a product at a lower price or at a higher quality than what is presently offered by other firms.
But what if a firm could avoid having to deal with competition altogether? This is exactly what the blue ocean strategy attempts to do — create a new marketplace that is free of competitors. Marketers build an entirely new product or service that is currently unknown to consumers.
It is necessary to thoroughly educate the public about the new product in order to gain interest and confidence. Once this has been completed, the new product will be positioned in point that provides no alternatives and allows much more effective branding tactics to be utilized.
Modern Examples of Blue Ocean Moves There have been several notable blue ocean moves in modern business recently, particularly in the technology realm.
The Nintendo Wii product shook up the gaming world when it was released nearly 10 years ago.
Rather than compete with the Sony PlayStation and Microsoft Xbox, Nintendo decided to create a whole new gaming concept that used motion detectors instead of button controls. The company had far fewer resources than its rivals, but managed to build a large market share because it took a risk on releasing an unproven technology.
The gaming system was received very well by gamers and built a whole new market with no direct competition. Instead of just selling shoes, TOMs created a unique business model that is essentially a hybrid of a charity and a shoe manufacturer.
It became the only company were a consumer could buy a pair of shoes and have a comparable pair donated to a third world country. This strategy gives consumers an additional level of value that no other shoe manufacturer, such as Nike or Jimmy Choo, could match.
An Alternative Red Ocean Move Red Ocean strategy is the exact opposite move, which positions a product in an already crowded marketplace. While it does sound attractive, there are many benefits to competing in a mature market.
There is already strong customer education about the types of products being sold. Therefore, companies do not need to spend a large budget on educating the customer. Also, it is less risky to offer a product that already has significant marketing research data to draw from.
The main con of a red ocean move is that it can be hard to find a lucrative niche in well-established markets. Conclusion Many technology firms are now trying to implement blue ocean strategies to gain a competitive advantage in the market. While there are many risks associated with this move, it can be very lucrative if it is successful.
Ultimately, marketers will need to weigh the potential benefits and risks that can emerge from taking the plunge into the blue ocean of business.Feb 05, · Write a to 1,word paper that describes the importance of blue ocean strategy and identifies a product or service that would be considered a blue ocean move.
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This paper describes blue ocean strategy in order to better understand its significance. Also outlined in the text is an example of a product that might be.