Mkt 421 - Blue Ocean Strategy Paper

Blue Ocean Strategy Paper

MKT/421 Marketing

November 16, 2015

Introduction

        The Blue Ocean Strategy is a unique approach for building customer base with new products or services. Instead of trying to compete in an already very crowded marketplace with existing companies, a blue ocean strategy looks to build an entirely new market segment that has no other existing firms in it. With the growth in technology and globalization, the importance of a blue ocean strategy has grown tremendously over the years. The following essay will analyze the blue ocean strategy and it will offer suggestions on how it can be employed in modern business environment. The essay will discuss the red ocean with a little detail into why it is the red ocean.

What is a Blue Ocean Strategy?

Companies consider the four Ps of marketing when developing new offering, which include products, placement, price, and promotion. To complete successfully it is needed to give the consumer a certain value proposition. An example of this is: a firm offers a product at a lower price or even a higher quality than what is currently being offered by other firms. But if the firm could avoid having to deal with any competition altogether this is exactly what the blue ocean strategy attempts to do- create a new marketplace that is free of competitors. Marketers build this new product or services that is currently unknown to consumers. The blue ocean strategy has helped to build new products and services to their fullest potential that it can be and also without the competitors taking all the customers.

Examples of Blue Ocean Moves

        There have been several blue ocean moves in business recently, especially in the technology world. Nintendo Wii product put the gaming world in shock with this new product almost 10 years ago. Instead of competing with Sony Play station and Microsoft Xbox, Nintendo created a new gaming concept that used motion detectors instead of button controls. Nintendo Wii works by the players’ movement. Nintendo has fewer resources than Sony and Microsoft, but still managed to build the large market shares because it took the risk on releasing this technology. This gaming system was a major hit with the gamers and they built a new market that has no direct competition.