The important strategy to which I am referring is called the blue ocean strategy, which could mean a real challenge for the business. Unlike the aim of the Blue Ocean strategy to break the value-cost trade-off, the Red Ocean Strategy aim would simply be to make the quota.
What is Blue Ocean Strategy?
Although more profitable to set a standard where no one could match, it seems impossible to do so without having a high budget plan and spending cost, which in return affect the price made available to the public.
LG refrigerator was the most expensive and featured the most advance technology, it had the best lighting and energy cost program and had a floor spot where everyone could admire the features from up close.
Retrieved from Business News Daily: So Netflix, attracted by this new market opportunity went to the front reached outperform the large firm Blockbuster up to Blue ocean strategy paper 3 essay point of getting this out of the market.
It is normal to find industries that make wise decisions, but there is also the possibility that the decisions taken have not been the best. Enter new segments of emerging markets like china, India, Middle East and Africa and thus creating uncontested market space. Get Full Essay Get access to this section to get all help you need with your essay and educational issues.
This situation resulted that for the yearNetflix obtained more than million dollars profit whereas Blockbuster went into bankruptcy. LG uses the Blue Ocean strategy, did so on a high budget and only targeted high suburban neighborhoods where they consumers can afford to pay for luxury.
This paper will also explore the different business that uses each one of these strategies, the advantages and disadvantages of using these strategies. The company Blockbuster was defensive and reactive rather than proactive as it should be this situation allowed Netflix took hold of a huge market.
The blue Ocean Strategy is hard to get to, but once you get it and the competition narrows, then the profit by far exceeds the expectations. However this strategy may become a strategy red ocean, as is the case with the strategy adopted by Blockbuster that with the passage of time as enjoyed the great privilege of being the pioneer rental movies, it fell asleep in his glory and stop allowing competition advance to take advantage of the new technology that was invading the world of communications.
Harvard Business Review, pp. Seeing that the competition would already have a demand level where as their product would be selling, LG would use that demand level to create supply.
The Red Ocean Strategy seeks competition, competes in existing market space, but would beat the competition, exploit existing demand, make the value-cost trade-off and align strategy choice of differentiation or low cost.
Get Full Essay Get access to this section to get all help you need with your essay and educational issues. E products where in the Blue Ocean Strategy would be to make them a non-factor.
Competing in a market is easier, rather than making an uncontested market where the competition is little to none. Blockbuster had the opportunity to undertaking into new strategies to open new markets, however did not take this option and preferred to handle the situation through a continuous struggle with its competitors.
LG created untapped market space and higher profitable growth. The problem that exists in a consolidated company as it was Blockbuster, and that is one of the characteristics of red ocean strategy is the fear of risk Kim, In the year Netflix had a database of more than 4 million subscribers, which resulted in the conquering of the competition and become the leader of companies dedicated to online movies rental Ryun, LG electronics makes the competition tough for local and global businesses in the same market.
More essays like this: The second tier is refusing noncustomers who consciously choose against the market, the third Tier is reaching unexplored customers in distant markets.
The Blue Ocean Strategy created three tiers of non-customers, first tier for soon-to-be noncustomers who are on the edge of the market. They successfully implemented the Blue Ocean Strategy to beat any competition and make them irrelevant by constantly making new technology and improving existing ones.
The chances of achieving a winning strategy decrease with the number of competitors increases Brooks, Retrieved from The American Spectator: The Red Ocean Strategy aim for LG would be to use the demand level already existed in that market to push sales.
For example the refrigerator business, LG has the best refrigerators with the largest vegetable and water storage compartments, Microwaves with dark-colored interiors to hide spice stains and the only television with built in video game for cricket if in India and football and basketball if in the united states.
Also, for that same year Netflix improved the business with the unlimited access to content that not only could be viewed on a computer or a TV, but also in video game consoles such as PlayStation, XboxWii, and Blu-ray devices, or smart phones; Netflix also has an additional advantage and is that they are not needed big time waits for access to content, because the distribution is via streaming making it more agile process Ryun, Blue Ocean Strategy Paper Essay Sample.
Companies are not eternally remaining on the market in a productive way. It is normal to find industries that make wise decisions, but there is also the possibility that the decisions taken have not been the best.
Read this essay on Blue Ocean Strategy. Come browse our large digital warehouse of free sample essays. Get the knowledge you need in order to pass your classes and more.
Only at mi-centre.com". Blue Ocean Strategy, a book by W. Chan Kim and Renee Mauborgne, develops and explains how to beat the competition by reaching beyond it into.
Statement: The ‘quest for best’ is often facilitated by pursuing a blue ocean strategy, thus at some point in their past most successful organisations have utilised a.
The Blue Ocean Strategy focuses on the three industries that closely touch people’s lives. Areas they looked at were Autos, Computers and Movie and what companies within those fields are doing to managing sustainable profit and growth through the test of time.
Blue Ocean Strategy & Blue Ocean Shift is about creating new market space and making the competition irrelevant. It is a roadmap to move you, your team, and your organization to new heights of confidence, market creation and growth.Download