Blue Ocean Strategy of Eby.Com
There are countless numbers of businesses around us: small or big, successful or straggling; well known or less know. All of them have goals to profit but not all of the achieve it. So,what are the reasons for businesses’ failure or success? Probably one of the most important goal is to chose strategy with right direction, finances, marketing, management, offerings, operations. Authors of the book Blue Ocean Strategies suggest to: “Get the strategic sequence right.” And they offer steps and solutions of it.Blue Ocean Strategies:Create uncontested market spaceMake the competition irrelevantCreate and capture new demandBreak the value-cost trade-offSimultaneously pursuit strategy of differentiation and low costMain principles of above mentioned strategies are to focus on big picture instead of numbers; reinvent and recreate market boundaries;  frame new strategies by satisfying existing demand; get the strategic sequence right; build execution into strategy and overcome key organizational hurdles. Blue Ocean Strategies’ characteristics are to create new value for  business and buyer without using competitors as a benchmark and pursue differentiation and low cost simultaneously, whereas, according to traditional rules, higher cost creates higher value.
With Blue Ocean Strategy, demand is created rather than fought over. This framework leads to opportunity  to gain more profits in a less period of time. “A snapshot of Blue Ocean Creators” shows that this strategy has been working better with companies that have close touch on people. For example, auto companies, because people use it to go to work, school, etc;computers because people use it for work, study, connection, etc; and movie-theaters because people go there to enjoy.In order to succeed with Blue ocean plan, one should consider its four action framework:Raise: What factors should be raised wee above the industry’s standard?Eliminate: Which factors that the industry has long competed on should be eliminated?Reduce: Which factors should be reduced well below the industry’s standard?Create: Which factors should be created that the industry has never offered?Ebay.com is one of the most successful company that adopted Blue Ocean Strategies. It work for both parties: sellers and buyers: more customers they have the more auction will happen. I have been a ebay seller ever since my child was diagnosed with Autism and it gives me opportunity to spend more time with him and still make money.