Blue Ocean Strategy

2021-05-13 19:37:49
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The size and competitive nature of the market has forced companies to institute a working model that strategically places the company within the market. Most companies prefer to look for ways to change their strategies through tweaks in the previous strategy in the market. These changes are referred to as the Red Ocean strategy. However, the article looks at the creation of a fairly new model within the market that is aimed at changing the odds in the market to the companys favor. The Blue Ocean Strategy looks at integrating a completely new strategy that has not been practiced before. It is a strategy that is aimed at developing new models or inventions that are critical in giving the entity a chance in a fairly new market. Creation of a new concept in an untapped market is the best way to boost performance and give a company a chance in the large market. The article uses Cirque du Soleil to highlight the advantages that companies look to gain by employing the blue ocean strategy in the market. The results and positioning of the company is a major contributor to its success. In a new market space, the company can control the new entrants through ensuring that it protects the market and the interests of the customers accordingly.

The most powerful aspect of delving into the Blue Ocean is that a company gets to enjoy maximum benefits in a market where it has maximum control. The writer observes that there is a lot of untapped market in the world if companies were to take the initiative and look for new markets. Depending on the models that a company takes, it does not have to completely come up with a new idea or market place but can come out of the red ocean to form a new business model that can be used in future by the company. One of the major limitations of the article is the concentration solely on companies that have achieved success when adopting new strategies. The article establishes a connection with the best companies that gained from adopting new models and no company that collapsed from developing going into the red ocean. If the theory on Blue Ocean is to be powerful there needs to be a comparison between different companies that have failed to succeed in the market. The article needs to identify the problems that they may have faced and how it compares to the Blue Ocean strategy suggested. In debunking all the different aspects or models that have since been used in many companies, creating a formula that aims at identifying individual models is therefore, critical.

The Blue Ocean strategy proposed is a real and good strategy that has been in use for years. The number of companies that have successfully used the model in the past highlights the probability of the model succeeding in future. Blue Ocean strategy is not a faddish and as the author suggests, new business models will be created in future and people have to wait and see the new markets that are created. The article is in line with the competitive theories and models that are critical in developing competitive strategy. Companies need to have a competitive advantage through looking for the best business models that are since critical in developing the best competitive models. The article has based its arguments on economic theory and established a connection to companies that have been using the blue ocean strategy for years. There is a specific model that has been created and is aimed at developing the best aspects that are critical in giving a chance to the market models needed. The Blue Strategy is a major conceptual framework that is critical as a management tool. Management needs to understand the concepts of creating a new market and how it can affect its present business model. These are decisions that should be discussed and effected by top management. One question that has been left unanswered is how companies still manage to retain their identity in the market amid the changes instituted. There is a need for research on the methods that need to be employed when making the switch and how it affects the past business model for a company that has been in business.

One of the aspect that has been a great revelation is that there are massive opportunities that do not necessarily have to be derived from a completely new market space. The present markets that have been referred to as the red ocean have massive opportunities have not been tapped in the market. New ideas are not always derived from a completely new framework or thin air and most inventions in the present world have been an advancement of a previous model. The technology industry is one of the industries that supports these arguments since most of the aspects that are being developed to date are an upgrade of older systems. The electric train is faster and more convenient but was developed from the previous model that used to be slower and more costly. In the present world, the opportunities are massive and one only has to relate their product or business model with the customer needs. Identifying the customer needs is therefore paramount and the proper research and development models need to be established to make the next market space. The model would work perfectly in the Middle East where there are many companies that are needed in the system. There needs to be a new market concept that can be identified through different conceptual frameworks that are used to create a new market space. Blue Oceans are everywhere one only has to identify the models needed to make the best processes and aspects that are critical for the entity.

Conclusion

The Blue Ocean Strategy is an important model that can be used in describing and predicting the future. The model is adamant that there will be changes in the future and can be used to identifying and describing the changes that will be instituted. The model can be applied in any market and is not limited in its focus. Businesses in any industry or market need to understand that developing new models is critical in giving the companies or businesses a chance to connect with the market. There is a difference between the models used and individual attributes that have since been developed by companies but the applicability is across the board. The model is a management philosophy that is applied to ensure the company positions itself well in the market. The market conditions define the business strategy and companies need to be in a position to take advantage of a new market space.

References

Kim, W. C., & Mauborgne, R. (2004). Blue ocean strategy. If you read nothing else on strategy, read thesebest-selling articles., 71.

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