The marketing world is cut-throat and full of competition. Monopolies cut down all opposition until they are last and only ones standing. Oligopolies exist as multiple competitors work together to control the market and keep incoming competitors from entering the market. Perfect competition is a myriad of competitors constantly fighting with each other over their slice of the market. It is easy to see how such market circumstances could be considered as “bloody”, and earn these markets the title of red oceans. A red ocean is easily understood since it “represents all the industries in existence today” (Kim & Mauborgne, 2004).
These industries have boundaries, and competition is in varying states. A blue ocean is “all the industries not in existence today” (Kim & Mauborgne, 2004).
Cell phones are everywhere today, only a small portion of the U.S.’s population does not use this product. In 1980’s cell phones existed, but they were not the craze that they are today.
Most individuals used landline phones. In the beginning, the cell phone market was a blue ocean. It has since become a red ocean market from the sheer amount of competitors entering the field offering a variety of styles, OS, and services. A blue ocean is a place of potential. A blue ocean can also be created from the red ocean. If an already existing service or product industry can provide other complementary services, they “can create a blue ocean of new market space” (“Complementary Products And Services”, 2014).
The Essay on Red Ocean And Blue Ocean Strategy
In the world of business there are many ways to work, and they are very different, in this case im going to talk about the blue ocean strategy, and the basic for this strategy is that companies need no challenges themselves, not with other companies, on the other hand we said that a Company has a red ocean strategy when they compete with other companies, and thats why these 2 are different, not ...
Essentially, they take an industry already in existence, and alter it enough to create an entirely new area of market. An example of a blue ocean move is Amazon’s Prime Air. Prime Air is to be a new delivery service that makes deliveries within 30 minutes of the client’s order. This service will be using robotic drones that can fly to the programmed destination and drop off the product.
Flying drones that deliver a product is not something that is available yet, which makes this a prime example for a blue ocean move. Amazon’s delivery system for right now exists squarely in the red ocean as they compete with other order/delivery sites and businesses. Amazon is hoping to release this service to the public in 2015 (Amazon.com, n.d.).
There are a couple red ocean moves that could be used to combat this. One attempt could be to replicate the drone, or at least the 30 minute delivery service that the drone is meant to perform. The cons to this is that amazon.com already has the ball rolling on this move and any other company attempting to compete will have to make up for lost marketing ground that amazon.com has gained with the general public. The pro to this move is that if it is done successfully, a competing company can keep amazon.com from maintaining its grip on this part of the new market. Another red ocean move is to simply undercut amazon.com’s prices.
A pro to this is that it could be a very successful persuasion tactics with the population. An argument could be made to the consumers that they shouldn’t have to pay the higher price to have their product in 30 minutes when they can have the same item in 1-2 hours for half the price. A con to this is that the competing company would probably best complete this move by jumping on the service before amazon.com can release this service to the public in 2015. It would take the company quite a while to plan for this service, implement the service, and garner interest from the population. Today businesses can compete on many levels and all around the globe. While the competition is fierce in the red ocean, the world is constantly advancing.
The Essay on Blue Sky, Red Sunset, White Clouds
Not all colors are the result of subtraction and addition of light. Some colors like the blue sky result from the selective scattering of the colors of light by particles in the atmosphere. The color scattered by the particles depends on the size of the particles themselves. BLUE SKY Violet is scattered more than blue; our eyes are not very sensitive to violet. The scattered blue light ...
That constant advance means there will always be opportunity for blue ocean moves. It is a continual process as blue oceans open, and competitors react to take advantage of the new opportunities. The blue oceans do not stay blue forever as new competitors race in to the new market areas, leaving the blue ocean to be swallowed up again by red oceans. Eventually, markets within these red oceans die out as well and companies fall out or transform themselves to match the current market trends.
References
Kim, W. C., & Mauborgne, R. (2004, October).
Blue Ocean Strategy. Harvard Business Review. Retrieved from http://hbr.org/2004/10/blue-ocean-strategy/ar/1
Complementary products and services. (2014).
Retrieved from http://www.blueoceanstrategy.com/concepts/glossary/glossary-complementary-products- and-services/
Amazon.com. (n.d.).
amazon Prime Air. Retrieved from
http://www.amazon.com/b?node=8037720011
