October 08, 2014
Blue Ocean Strategy Paper Introduction
Blue Ocean Strategy is used in marketing to build a different customer base in an extraordinary way. Blue ocean strategy builds a new market segment different form other existing firms. Companies do not use or gain customers from tradition competitors usually focusing on new customers. There ten key points Blue Ocean Strategy (BOS) goes by I found interesting is: one, BOS is a decade-long study with over 100 strategic moves with over 30 industries; two, they seek simultaneous pursuit differentiation with low cost goals; three, business do not aim to outperform the competition but to create new market space making competing irrelevant; four, offers systematic and reproduce new and existing firms; five, includes strategy canvas, value curve, four action framework to name a few; six, uses frameworks and tools idea index which are visual for effective strategy for execution and communication; seven, covers formulation and execution; eight, uses 3 concept building blocks such as value, innovation, leadership, and fair process; nine, reconstructs theory, structure of strategy; ten, value proposition, profit proposition, and people proposition is required by Blue Ocean Strategy to be performed by organizations (Blue Ocean Strategy, 2014).
Importance of the Blue Ocean Strategy The importance of the Blue Ocean Strategy for new companies is to a create business in the marketplace that is free from established competitors. When marketers build or create new products and/or service unknown to consumers this gains interest to consumers making product or service more effective in their business tactics. For example, take the fitness establishments, Curves opened in 1995, gave women a better out look to “no excuses and easy to follow” exercising without all the extras other gyms provided and not as intimidating. Curves targeted two strategic “groups” the U.S. fitness world, the traditional gym with high membership fees and exercise programs at home with little or no cost (Blue Ocean Strategy, 2014). With this idea, Curves entered an oversaturated market with the strategy of offering customers that certainly not interested and with a blander offering than the competitions (Blue Ocean Strategy, 2014). Curves also created a blue ocean with two distinctive strengths with two other strategic groups that made the establishment standout even more. Curves eliminated and reduced the extras other gyms provided such as those scary exercise equipment, spas, pools, and locker rooms (Blue Ocean Strategy, 2014). Most importantly, the experience women gain