blue ocean strategy is a concept written to question the standard five forces concept of marketing. The idea is to move out of the quote “red ocean” where there are sharks always competing into the “blue ocean” competition of your own where other competition is nonexistent. A red ocean is easily understood since it “represents all the industries in existence today” (Kim & Mauborgne, 2004).
Blue ocean focuses on potential, focus less on their competitors and more on alternatives, and focus less on existing customers and more on potential customers. The following will discuss examples of a blue ocean strategy and red ocean strategy and the pros and cons to each. One example of a blue ocean strategy is the Google Project Ara. The Google Project Ara is currently in the process of being made and will be the first totally customizable smartphone. The idea is to solve three problems: obsoleting, waste, and varying consumers’ needs (Molen, 2014).
The idea is to create modular phone in which, the smartphone can be upgraded just like your laptop but with more ease. If something were to go wrong like the normal phone problems, cracked screen or work battery for example, it would just be replaced with a new one. In turn this will reduce consumer waste. The consumer will also be able to customize the phone to how they want it. Whether this includes a higher quality lens camera, a larger battery for those who use his or her phone for business throughout the day. Each individual module that is chosen for the phone will be put together to make the phone a whole. Each module will connect to the other working parts through capacitive interconnects, which are essentially wireless pads that are smaller than standard pins (Molen, 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 ...
This is considered a blue ocean move simply because it has never been done before. Cell phones could have been considered a Blue ocean strategy at one point in time, but have now moved into the Red Ocean with all the competitors. There is ability for those who work within the realm of the cellphone industry to move back into the blue 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).
This is how Google will move the cellphone back into the blue ocean and out of the red ocean for their company. Google can focus on creating the customizable cellphone because cellphones will continue to be a part of almost everyone daily lives.
Am alternative red ocean strategy would be just to continue to make cellphones. There are many companies within the cellphone industry that continue to make the same idea and product, which will continue to sell, but will not set a precedent over other companies within the same industry. The pro to the red ocean strategy is the cost for consumers. When the technology stays the same the cost to create the product lowers and in turn creates a lower cost for consumers as well. The con to the red ocean strategy is, technology sells. Through time it has been made evident that consumers are willing to pay money for the newest and best innovation and technology.
In conclusion, blue ocean strategy is a focus on creating something new that reconstructs marketing boundaries and reaches beyond the norm into new realms. This creates a blue ocean with no competition, as opposed to a red ocean full of competition. The example of the blue ocean strategy for Google’s Project Ara shows the ability to take an existing product and placing it back into the blue ocean.
The Business plan on Swarovski Branding Strategies & Products
His guiding principle is still followed by the company today: “To constantly improve what is good. ” 1949 SWAROVSKI OPTIK is founded, and goes on to become a leading manufacturer of precision optical instruments for hunting and nature observation (binoculars, telescopes, rifle scopes, range finders, and night vision and optronic devices). 1956 The first Swarovski crystals for chandeliers and ...
References
Complementary products and services. (2014).
Retrieved from
http://www.blueoceanstrategy.com/concepts/glossary/glossary-
complementary-products- and-services/
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
Molen, B. (2014).
engadget. Retrieved from
http://www.engadget.com/2014/04/15/project-ara-modular-smartphone/
