Blue Ocean Strategy Mkt421

Blue Ocean Strategy

Introduction

Blue ocean strategy (BOS) is important to increasing profitable growth by making competition virtually immaterial to consumers requesting products and services while a Red Ocean environment decreases profit and loss of customer base. The executives at 3M realized after years of operation they needed to attract new customers through something innovative but simple with a low cost to produce. Post-It Notes were created purely by accident however 3M realized they could be a valuable tool used in offices and for educational purposes, therefore, expanding its customer base. Blue ocean strategies are essential for products or services to be innovative and low cost because uncontested marketplaces create differentiation in organizations.

Description and Importance

A blue ocean strategy is created through innovation of products or services people will be interested in and are different from others in the industry. “In blue oceans, demand is created rather than fought over” (Harvard Business Review, 2004). Fighting for customers in a cutting edge world creates a “bloody red” environment while BOS makes competition virtually irrelevant by expanding products to new customers. Products or services must be innovative while remaining low cost by aligning profit, value, and people in an organization creating diversity in the industry. The Blue Ocean Strategy Institute provides 10 key points (provided in Appendix A) explaining the importance of companies implementing a BOS (INSEAD The Business School for the World, 2014).

Blue Ocean Move Product

Households and organizations around the world use paper to perform daily tasks for personnel, educational, or professional purposes. In 1968," Post-Its started to form accidentally when Spencer Silver created a weak adhesive originally intended to be super strong for the aerospace industry (Today I Found Out, 2011). The idea of “Press ‘n Peel” began as yellow paper with the adhesive...