Blue Ocean Paper
January 7, 2015
Blue Ocean Strategy
Blue ocean strategy and its importance
Blue Ocean Strategy is a theory using the examples of two oceans. The first being the example a red ocean and the second example is the blue ocean. The red ocean is the ordinary everyday businesses. The red ocean has restrictions and limitations that are understood in their respective industry. The blue ocean is all the other industries, new markets; the demand is formed not competed for, the growth for both of these are money-making. In the red ocean companies try to beat their competitors in order to be number one in the current demand. The industry gets more crowded with new businesses enter. In blue oceans they create whole new industries. Blue oceans can also be created off of a red ocean industry. (Kim 2004)(Mirrahimi 2013)
The importance of blue ocean strategy is looking outside the box, new advancements, and new technology. In the blue ocean strategy businesses try to create new markets so to avoid competition. They want have the newest products in the industry. They want to discover a new market. It is also important to market a new product and let the consumers know all about the new product. In doing this it will lead to better branding of the new product. (Kim 2004)(Mirrahimi 2013)
Blue ocean move
In the business industry today there are many blue ocean strategies. One example is in the technology industry. Amazon is trying to take over the industry demand by having a drone deliver your package. This innovation is brand new to the industry. Amazon is taking a risk with this but it will give them a big market share. The competitors like FedEx and UPS, will now have to up their game in order to compete with Amazon.
Red ocean strategy
In the red ocean strategy, industries are competing with similar products. One benefit is a company does not have to spend a lot of money in marketing. The...