Blue Ocean

Blue Ocean Strategy Paper

Mary Wilson

MKT/421

October 26, 2015

Instructor Lashawn Hampton

The description of blue ocean strategy and its importance

Blue ocean strategy is defined as way of business to find ways to introduce new products or services into the marketplace without competition. The goal is to use a different approach to build a consumer base, rather than to work and try to capitalize in an existing marketplace. Blue Ocean offers the opportunity for rapid growth and creates a level of high product differentiation and keeps the cost low, therefore the competition does not matter. The success of Blue Ocean is that it can attract a huge number of customers and at the same time increase the cost of competition. According to Arline, in a statement made by Alan Murray “that blue ocean strategy encourages businesses to focus less on the competition and more on alternatives, and at the same time visualizing less on their present customers and more on potential new customers (Arline, 2015).” Blue Ocean is also about bridging a gap between the existing companies and the potential new consumers and seeing the true value of the consumer. It is a method which existing companies, which strategically are labelled as red ocean companies now see that growth in their business can be created right within the company by apply the methods of using blue ocean strategy. The most important feature of blue ocean strategy is that is reject the fundamentals of traditional competition and the trade-off is in value and cost (Kim and Mauborgne, 2004).

A product or service that might be considered a blue ocean move and why

There have been several changes in the airline industry to increase their market and to keep cost low. Southwest Airlines standout far above its competitors, because of its success in apply the use of blue ocean strategy. Southwest plugged into a customer base who would rather drive than to use...