Essay About Blue Ocean Strategy And Blue Ocean

Blue Ocean Strategy Paper
Blue Ocean Strategy PaperJerel DeckMKT/421Susan Craver12/14/15Blue Ocean Strategy PaperThe blue ocean strategy in marketing is a term used to describe uncontested market space for an unknown industry or innovation (Blue Ocean, 2015). When in need of building a consumer base, the blue ocean strategy is a great tool to use. Where companies compete with each other in every piece of the crowded market share, the blue ocean strategy builds new segments not being used by other existing companies. In the blue ocean, instead of demand being fought over by different companies, it is created.  As time goes on the blue ocean strategy will continue to become more and more important for businesses. This paper will give a description of what the blue ocean strategy is and why it is important. Also, an example of a product that is considered to blue ocean move will be given and why.Description of Blue Ocean StrategyThink of owning a business and being the only one in that market where there is no competition, you have your own pace, it is very profitable, and different products and services are being created often. That description is exactly what the blue ocean strategy is. In the book the blue ocean strategy is described the unknown market space, untainted by competition. In blue oceans, demand is created rather than fought over (Blue Ocean Strategy, 2004). There are times when newly products launch and have to decide what price they will release at. Because of the many competitors in the market, understanding if the price should be set higher or lower than competitors can make or break a that product. Companies that use the blue ocean strategy do not have problems like competing with other companies. Instead, these new companies utilize the blue ocean strategy, create strong names, create, and offer new products that are not yet in the market. Companies offering new products in the market that have no competitors can se their own profits and increase revenues without a problem. This is a great way to start building a large consumer base and clientele having customers excited abut a new product. Once the company gains the loyal customers, they become very successful. Examples of Blue Ocean MovesEvery since the term was created there has been many blue ocean moves in the business world. One of the most notable blue ocean moves I can think of to date is Apple’s iTunes. Apple moved into the music market in 2003 when they launched iTunes, a legally digital online music service where customers can purchase and download music. When iTunes was released the company boomed in revenue and other ways of listening to music like cd’s and cd players took a serious blow. When iTunes launched it drastically changed the music market and the company brand loyalty increased very significantly. With the use of technology, Apple changed the music market in a major way and made a trend to download the music digitally. The strategy Apple used was clearly a success and received as a blue ocean move. Another product that can be considered a blue ocean move is the release of the Nintendo DS and Wii. The Sony PlayStation and the Microsoft Xbox had dominated the video gaming market for a while. Nintendo separated itself from the red ocean by creating and releasing a new concept of gaming with Wii and DS. The Wii used innovative technology like movement sensors and voice control. On the other hand it generated massive cost reductions eliminating high-end graphics and CPU power. Thus Nintendo was able to sell the Wii at a price that appealed to the mass public (Blue Ocean Strategy at Work, 2013). The success of these new gaming concepts proved to be a big blue ocean move.