Terrica L. Brown
January 8, 2015
Blue Ocean Strategy
The blue ocean strategy is considered the approach in marketing to develop and built business based on an unknown market. The blue ocean strategy is based upon a company that is built for a new market. This will allow a firm to grow within the community and offer a new product or services to customers. According to Chan and Mauborgne (2004) “There are two ways to create blue oceans strategy”. The first way is to launch entirely new industries (Chan & Mauborgne, 2004). The final way is to build and create from within a red ocean company (Chan & Mauborgne, 2004). If a firm decides to use the blue ocean approach, it will help build a powerful business. This business may grow and create a brand that may last in that market. A firm must also consider the four P’s in the blue ocean market. These four P’s are the product, price, promotion, and placement. Using these methods will assist the company with gaining the trust from the consumers and growth of their business.
Comcast Blue Ocean Strategy
Comcast Communications is a multi-million dollar company. Comcast Communication provides their customer with video, high-speed internet, home phone, and home security services. In 2011, Comcast launched the first internet program for low-income families. The name of this program was Internet Essentials. This program was launched the 2011-2012 school years for the internet only customers ("About Internet Essentials from Comcast ", 2011). Comcast Communication focused on the need for school aged children from grades K-12 who could research school projects and information from within their home. These customers had to have at least one child who participated in the National School Lunch Program (NSLP) ("About Internet Essentials from Comcast ", 2011). This means that at least one child eats free lunch within that household. Also, another qualification, to be eligible for this program, is a customer cannot have an outstanding debt under a yea ("About Internet Essentials from Comcast ", 2011). The monthly rate for the Internet Essentials program is $9.95, the modem is included in the monthly rate, and the internet only computer can be purchase for the amount of $149.99. Comcast currently is offering this program to customers that have one or more than one line of business, but does not currently subscribe to the internet. The internet speed is 3mbps and the monthly rate of $9.95 stays the same as long as the customer subscribes to the services. This was considered a blue ocean move for Comcast Communication because in 2011 no other company had ever launched a program for low-income families. The importance of this blue ocean strategy was to gain new customers, assisted low-income families with internet services at an affordable rate, and increase revenue and profits.
Red Ocean Strategy A red ocean Strategy is opposite of Blue Ocean Strategy. Red ocean strategy is when a firm decides to enter their product or services in a competitive market. There are some benefits for a company that chooses to compete in a mature and developed market. The red ocean focuses mainly on existing customer, while Blue Ocean concentrates on gaining new customers ("Corporate Strategy Institute", April 21, 2009). Comcast Communication red ocean strategy was to provide internet services for low-income families and a low cost. Competing in a red ocean market means that competitors may either loss an existing customer or gain a new customer. After Comcast Communication started Internet Essentials in 2011, other firms started their low-cost…