Blue Ocean Strategy
Blue Ocean Strategy
Description and Significance
According to Cham Kim and Renee Mauborgne (2004), the Blue Ocean strategy involves the description of how the organization should try and proceed to find some way to work in the marketplace that is not bloodied by the competition and also that is free of competitors. The strategy is against working in conditions such as Red Ocean, where businesses are ferociously fighting each other for some share of the marketplace. In essence, businesses are most often looking for ways that can better contend with their competitors, and that is the Blue Ocean ...view middle of the document...
The Blue Ocean strategy is quite significant nowadays because it is the fundamental approach to creating new markets and developing some focus on non-customers to create some demand. In essence, the technological stage currently have led to high productivity levels, and also the supply that have exceeded the demand, prices are falling and also the rich countries have decreasing populations. Therefore, the Blue Ocean is quite the best approach. This strategy must be aligned with innovation, cost, price and utility (Kim & Mauborgne, 2004).
A Service or Product Considered a Blue Ocean
One of the services that incorporate Blue Ocean is the Threadless strategy. In essence, in the digital landscape, the Blue Ocean contains some significant part to play in providing brands to re-think their proposition and also to reconsider their value to the end user. This assists to provide some platform to engage with customers and re-appraise where the competition is residing currently, and also where the opportunity is to develop some uncontested market place. Threadless is the company that has had to do this in a competitive T-Shirt market.
Threadless did put their customers at the centre of planning and it did prove to be a USP in developing an uncontested market. In essence, key factors the organization competes for the T-shirt market involves the product range, the price point, the product size, digital marketing channels, delivery and also the screen printing. Threadless did create new factors in delivering some uncontested marketplace. They did create some online community that is at the heart of the organization by interacting with their userbase, in which case it led to the idea of Brand loyalty via introducing crowd-sourcing as the main principle. The principle involved includes the fact that, all T-shirts were made by the Threadless online community, the designer received cash reward and they involved the phrase, “find products for the customers” (Swan, 2014).
An Alternative Red...