Also, it is less risky to offer a product that already has significant marketing research data to draw from. Modern Examples of Blue Ocean Moves There have been several notable blue ocean moves in modern business recently, particularly in the technology realm.
They focus on beating the competition. Their strategy is focused on providing a low-cost no-frills airline.
The best agencies are able to carve out a niche for themselves by specializing in doing one thing really well. They focus on competing in a marketplace which already exists. This can be summed up with the following phrase: They focus on exploiting existing demand.
It is clear what products and services customers want. Successful trail-blazing organizations will attract competition, creating a red ocean. They focus on execution better marketing, lower cost base etc. With the rapid growth of technology and globalization, the importance of a blue ocean strategy has grown in recent years.
Ultimately, marketers will need to weigh the potential benefits and risks that can emerge from taking the plunge into the blue ocean of business.
Red Ocean Strategy Disadvantages There is usually an established market leader who will be very hard to beat. Red Ocean Strategy Advantages The market is already established. Therefore, companies do not need to spend a large budget on educating the customer.
Conversely, Red Oceans can be thought of as all the marketplaces which currently exist. Blue oceans eventually become red oceans. For years gaming companies had focussed on making better and better machines, Nintendo focussed my making the Wii fun.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. Unformatted text preview: An alternative red ocean move for the same product or service along with the pros and cons of that strategy Format your paper consistent with APA guidelines.
Ref: (American Psychological Assoc.) References Kim, W. C., &. 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.
In their New York Times bestselling book, Blue Ocean Shift (September ), Kim and Mauborgne share how to put these practical market-creating tools into practice to move from red to blue oceans and to do so in a way that people own and drive the process.
Blue Ocean Strategy coexists alongside Red Ocean Strategy (Competitive Strategy). Every blue ocean move will ultimately turn into a red ocean. But we believe that a Blue Ocean move will give the company a head start it requires to understand and conquer the existing competition.
A Red Ocean Strategy is a strategy which aims to fight and beat the competition. Red Ocean Strategies have the following common characteristics: They focus on competing in a marketplace which already exists.Download