The blue ocean strategy in marketing is a distinctive method when it comes to building a customer base very different when it comes to competing within a certain type of industry. Instead of trying to compete in a crowded market place with existing companies, a blue ocean strategy will drive to create a complete new market segment that has no completion or other firms to compete against. In this day in age of technology and the emergence of it and globalization the importance of a blue ocean strategy has grown in recent years and in my essay I will explain the approach and how it is employed in the modern business environment,
Blue ocean marketing strategy in marketing
In today cluttered industries companies have to consider the four p’s of marketing when developing new offerings which include product, placement, price and promotion. In order to complete within their industries they must give consumers a certain value proposition for example a firm can offer a products at a very cost effective rate or at a higher quality than what is presently offered by other firms. In a blue ocean marketing strategy it would create an entirely new market causing a firm not having to worry about dealing with competition altogether.
The blue ocean strategy, aims to create a new market place that will cause only one player in that industry eliminating any competition marketers build an entirely new product and service that is currently unknown to customers. In a case like this, it is vital to find effective ways to introduce and inform the public about the new product and service to develop awareness, interested and confidence. When product and service awareness has set in the new product will be positioned in point that provides no alternatives and allows much more effective branding tactics to be utilized.
Modern examples of blue oceans moves
There have been several notable blue oceans moves in modern business recently particularly in the technology realm the Nintendo Wii product shook up the gaming world when it was released 10yrs ago rather than compete with the ps3 and Xbox Nintendo decided to create a whole new gaming concept that used motion detectors instead of button controls the gaming system was received very well by gamers and built a new market with no direct competition I would require years of tech development for the company’s main rivals to offer similar products another notable blue market strategy occurred with the launch of toms shoes instead of just selling shoes toms created a unique business model that is essentially a hybrid of a charity and a shoe manufacturer it became the only company were a consumer could buy a pair of shoes and have a comparable pair donated to a third world country this strategy gives consumers an additional level of value that no other shoe manufacturer such as Nike jimmy Choo could match.
Alternative red oceans move
Red ocean strategy is the exact opposite move which positions a product in an already crowded market place while it does sound attractive there are many benefits to competing in a mature market there is already a strong customer education about the types of p/s being sold there dore companies do not need to spend a large budget on educating the consumer the main con of a red ocean move is that it can be hard to find a lucrative niche in well established markets just imagine trying to create a new soda brand that directly competes with coca cola it would be very unlikely that this new soda brand could upset the world’s largest soft drink supplier.
Many technology firms are now trying to implement blue ocean strategies to gain a competitive advantage in the market while there are many risks associated with their move it can be very lucrative if it successful ultimately marketers will need to weigh the potential benefits and risks that can emerge from taking the plunge into the blue ocean of business.