Blue Ocean Strategy Paper

Submitted By kirkpearson
Words: 575
Pages: 3

Blue Ocean Strategy Paper
MKT 421
December 22, 2014

Blue Ocean Strategy is a non-traditional business strategy in which companies create new industry or market areas as opposed to competing within an existing market that is already saturated with competition. According to Chan, most industries as we know then exist within a Red Ocean sector of business strategy. In the Red Ocean, businesses compete against each other to gain market share or to gain a competitive advantage against other competitors. Businesses that operate in the Red Ocean use tactics much like a military organization, in which the primary objective is to beat or defeat your opposing competitors in a battle to dominate market share. The Blue Ocean is a more peaceful environment that exist as result of a company creating a new industry or market where there is no competition. A Blue Ocean environment is derived from either a completely new innovation or the combination of existing markets that has not previously been thought of. The benefit of Blue Ocean Strategy, is the inception of new market areas that exists without competition and the likeliness of accelerated growth and profit over the course of approximately 10-15 years. (Chan, 2004)

Headblade Inc.
Headblade Inc., is an example of recent company that has entered a Blue Ocean market by designing a dedicated razor for head shaving. The HeadBlade was invented in 1997 by entrepreneur Todd Greene after his own personal struggle with shaving his head with a conventional razor. After years of shaving with a typical razor, Todd designed and ergonomic design for head shaving that compatible with current disposable cartridges. Todd’s original razor design became the foundation for a company tailored to the specific need for head shaving and head care products. Timed nearly perfectly with the period of acceptance of the shaved head look, Todd was confident he could build a company whose focus was on head care alone. The Headblade is a very functional, well designed, previously nonexistent product, which was created in less than one year by one man. In a market where major businesses spend millions on research and development for new or improved razor design, it is admirable that small business man’s vision could become a national design awards winner. Prior to the Headblade, shaving with a…