Blue Ocean Strategy Essay examples

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Blue Ocean Strategy
Thomas L Duggan
MKT/421
July 9, 2015
Jennifer Hager

Blue Ocean Strategy
Outline
A description of blue ocean strategy and its importance (Definition)
A product or service that might be considered a blue ocean move and why
An alternative red ocean move for the same product or service along with the pros and cons of that strategy

Introduction
This paper will attempt to define the “Blue Ocean Strategy” and show the importance of this strategy. Showing the differences between Blue Ocean and Red Ocean and the importance of this way of thinking. This paper will discuss the Roadhouse Movie Theater and why it is considered a product or service using the “Blue Ocean” strategy. Also a “Red Ocean” strategy for the Roadhouse Movie theater listing the pros and cons of this product.
Definitions
Blue Ocean: is a slang term for the uncontested market space for an unknown industry or innovation. Coined by professors W. Chan Kim and Renee Mauborgne in their book "Blue Ocean Strategy: How to Create Uncontested Market Space and the Make Competition Irrelevant" (2005), blue oceans are associated with high potential profits. (Investopedia, Unk.)
Red Ocean
Blue Ocean
Compete in existing market space
Create uncontested market space
Beat the competition
Make the Competition irrelevant
Exploit existing demand
Create and capture new demand
Make the value-cost trade-off
Break the value-cost trade-off
Align the whole system of a firms activities with the strategic choice of differentiation or low cost
Align the whole system of a firms activities in pursuit of differentiation and low cost

Blue Ocean Strategy
As defined the Roadhouse Movie theater has created uncontested market space, they made the competition irrelevant and they captured new demand. They did all this through innovation. By combining a movie theater and restaurant they have made the competition irrelevant because there is not another movie theater in town that does this. Their customers want to be able to have dinner and a movie. They can do this at one location. People can eat the standard movie theater food of popcorn, nacho’s and hotdogs at movie theaters but when you go to the Roadhouse movie theater you can have the option of a full menu delivered to your seats.
“Road House Cinemas, Tucson’s only locally owned and operated 1st run movie theatre, would like to invite you to a movie and dining experience found no where else in Tucson! We offer a tasty full menu, a formidable bar, and ridiculously comfortable recliners.”
“We also offer reasonable prices, which means you can Wine, Dine and Recline while watching first-run Hollywood movies, without breaking the bank!” (Roadhouse Cinemas, July)
Red Ocean Strategy
If Roadhouse cinemas wanted to continue in the movie industry as all the
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