Blue Ocean Strategy

Blue Ocean Strategy Paper

Suscha Harrington

MKT/421

November 16, 2016

Jo-Jan Hardesty

Blue Ocean Strategy Paper

Every year companies strive to create a blue ocean product, but many fail and end up creating just another red ocean disaster. The purpose of this paper is to explain what a blue ocean strategy is and what makes a red ocean. Identifying a blue ocean product will be discussed also and how it is affected by the red ocean products.

Description

The blue ocean strategy is to come up with a new product that no other company has come up with or create a product in a corner of the market that no one has cornered yet. Blue ocean products set the pace of the market leaving any competitors to fight amongst themselves to create a product that rivals the trend setter. What makes a red ocean is when all the competitors are fighting each other in price, and creates products that are already in their current market. The following table shows the differences between the blue and red ocean strategies. According to “Bos Blue Ocean Strategy India” (2011)

(RED v/s BLUE)

Blue Ocean Product

A perfect example of a product company that is leading the way in the blue ocean is Apple. When people think about Apple they just think of IPods and IPhones, that it is just another phone. Where they maybe right about it be another phone, they are wrong about it being equivalent to all the other phones on the market. Apple sets the pace for the phone market, the iOS (i Operating System) is closely rivald by the Android system but Apple is the company that comes out with their new product setting the market structre for the other phones that come out. The same concept is used for the IPad versus a variety of Tablets. Apple also has a variety of laptops and desk tops that are set out for production every year. Again they have their competitors like HP, Dell, Toshiba and ASUS, but like their cell phones, they are usually the first to get their product out causing everyone to...