Blue Ocean Strategy Essay Example | Topics and Well Written Essays - 4000 words

Blue Ocean Strategy - Essay Example The overall concept of Blue Ocean Strategy is innovation. It is understood from the book that companies should identify, plan a strategy and create a business of which no competition exists. Kim and Renee (2005)2 divide the competitive business world into two segments of Red Ocean and Blue Ocean. It is further explained that 'Red Ocean' is the business world full of competition where the existing organizations compete with each other to acquire its share in the market whereas 'Blue Ocean' is the unidentified market area. The Blue Ocean is the space wherein the business is new in the market and has no threat of competition instead it has to create competition. The giants of particular commodity or product or services, who are termed as leader, find it difficult to survive in the competitive world of business without marketing. American Marketing Association has defined marketing as the performance of the business activities that direct the flow of goods and services from producer to consumer or user. Marketing assists in identifying specific markets for products and services, guiding the development of products, packages, and services, etc. (Kumar)3 In blue ocean strategy this concept has a new meaning and a new method to implement in the firms. Blue ocean marketing concept proposes a method based on the segmented target group and the product development and marketing is based on the conduct of this group. The concept is good but cannot be fitted with all firms and their marketing procedures as it lack competition, which is vital in the marketing concept. (Kim and Renee, 2005)4 Marketing Strategy David (2007)5 states that creating a marketing strategy is only the first step towards the attainment of goal and after the strategy has been built; its solidarity has to be maintained to attract external stakeholders. He criticizes the marketing directors who are using B2B model while the others in the market have adopted real and valuable marketing strategies. The first principle of blue ocean strategy is to reconstruct market boundaries to create blue oceans so that it doesn't face any level of competitions and existence of competitors is zero. In order to create Blue Ocean, it becomes necessary to identify the threats and difficulties that make Red Ocean such a difficult world to live in. The red ocean companies are trapped in this area due to following reasons, 1) they define their industry similar to which exists in the market and try to provide the best other than others, 2) they try to and follow the strategic accepted methods, models, principles of developed and successful companies and strive to stand out in their strategic group, 3) as they produce similar products and provide service similar to that of the other industry, they focus the same consumer, which further makes the competition stiff and harder, 4) they define the scope of products and services similarly, 5) they accept the rules and regulations of the specific industry as they are governed by the governing body and functions accordingly and 6) some seasonal products produced by the companies will face stiff competition from its rivals as all the companies will