In order to process the nature of a blue ocean entity, it is imperative to grasp the point of derivation, which is otherwise known as a red ocean. A red ocean, which is polar to a blue ocean, generates its namesake from a literal representation. Imagine a feeding frenzy in the middle of the ocean; the water turns red with the victim’s blood as predators compete for survival. Now, apply this image to economic conditions. In an open market in any given industry, where there are established standards, barriers, and rules, competitors in a well-defined saturated industry jockey for market shares from the available pot. That, in a nutshell, is a red ocean.
On the other end of the spectrum befalls the blue ocean, which can also be depicted through a literal illustration of its characteristics. In a blue ocean, a vast landscape void of competition and freedom to pursue self-manifested wills is at the discretion of the occupant. A blue ocean is uncharted, where opportunity reigns because those who have sought out these waters have done so through an innovative ability to navigate themselves out of the once crowded red oceans. It is a privilege to occupy these waters, and the following examination will detail why in terms relative to business practices.
The blue ocean favors those who conceive a departure from paradigms. In order to obtain limitless and uncontested market shares, an entity traditionally has done so through differentiation and/or low cost. In doing so, the result is not to outperform competition, but rather, render competition irrelevant. The ability to corner a market and isolate oneself amongst its vastness is executed through means that redefine the terms of current competition within an established industry.
The Term Paper on Blue Plc Company Business Industry
INTRODUCTION The purpose of this report is to determine and consider the aims of Blue plc and in turn try to achieve a number of objectives. These objectives are to try and improve profitability, addressing stakeholder expectations, expanding the market for Blue plc, outline potential benefits that expansion would bring to stakeholders and also to try and investigate how production could be ...
Sure, ingenuity and crafting a new mode of production can lead to untapped market shares, but the industry has proven an innate ability to catch up to such advancements. Rather, it is value-cost tradeoffs and redesigned infrastructure that protects blue ocean entities from new entrants. This concept is a far leap from environmental determinism, which can otherwise be defined as, “a worldview in which market boundaries and industries can be reconstructed by the actions and beliefs of industry players . . . the reconstructionist view” (Kim & Mauborgne, 2004).
Duck Commander
Now that the intricacies of a blue ocean strategy have been defined in the aforementioned content, an application of a contemporary real-world example will be thoroughly dissected in order to determine the factors that drove this brand into blue ocean market shares.
The Duck Commander story began under humble and assuming motives. In 1973, Phil Robertson, an avid hunter and former college football standout, conceived a new design of duck calls that mimicked the quack of a duck impeccably. The double-reed design would later be produced in bulk and made available to consumers.
In some cases, a technological advancement can lead to an emergence into blue waters, which this in fact did do, but only temporarily. He enjoyed the spoils of the new innovative design for the next decade or so, yet found himself in a red ocean environment, still. Therefor, the story does not end there. While production of duck calls steadily increased, it was the endeavors that occurred on the periphery that laid the foundation for the duck call empire.
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 ...
The niche strategy Duck Commander employed is unique in that infrastructure was not the defining element that led them to blue oceans, as is the case with most historical records. Rather, it was the fortification of a brand that separated them from the pack. The perspectives of those involved in the production of the duck calls both recognized the qualities of their market and identified with them personally.
Phil Robertson eventually handed the torch to his sons, Willie who would later become CEO, and Jase and Jep who are on the frontlines of hand-making the duck calls. A think tank was developed from the ground-up where they began making hunting videos that would showcase their expertise accompanied by their product. This in itself insinuated credibility. As this concept gained momentum, outsiders caught on to the manufacturers. A realization that the Robertsons embodied countless qualities that would further market the brand to consumers as the face of the company would prove to be the discerning factor that would propel them into blue oceans.
When A&E picked up the Robertsons for reality TV, the premise ran along the ideals that they were to project their unwavering and innate principles, along with their business venture. The charm of each character created a reality TV phenomenon. They essentially created a market based off their own marketability. Now, the Robertsons are, “leveraging every ounce of their celebrity fame [by] publishing books”, making appearances, and expanding their brand’s tentacles into the far reaches of every retailer (Huspeni, 2013).
Red Ocean Alternative
For the sake of argument, the following will examine the same product should it have remained buoyant in red waters. As it was previously determined, the defining element of the brand was its marketing push. Should Duck Commander have settled on its founding design, it would likely have found themselves sharing market space with other competitors. A lapse in this strategical decision would have stunted profit margins, market shares, and in general, proven itself to be a con in the grand scheme of things. However, a potential positive that could have come from not capturing their market with strong brand recognition would have been to continue to pursue production of a double reed duck call that was superior in function to their competitors.
The Essay on Stock Market and Brand Portfolio
1. Brand Portfolio a. What is your 5 year plan regarding the brand portfolio across the two markets. Give justification Our Period 2 results have swept the industry and we have become number one team in our industry. We are the leaders in value market shares (23%) and unit market shares (29%) in Squazols market. Our 5 year plan will focus on maintaining the brand equity in the Squazols market as ...
Referats:
Huspeni, A. (2013, September).
How The Robertsons of Duck Dynast Conquered America. Entrepreneur, (), .
Retrieved from http://www.entrepreneur.com/article/228498
Kim, W., & Mauborgne, R. (2004).
BLUE OCEAN STRATEGY. Harvard Business Review, 82(10), 76–84.
