Blue Ocean Strategy Essay

815 Words Jun 7th, 2015 4 Pages
Blue Ocean strategy describes how organization should try and find a way to work in a marketplace that isn’t full of competition and not full of competitors. It is important to understand the importance of the blue ocean strategy. By being able to understand the importance of the blue ocean strategy, I can then identify a product or service that would be considered a blue ocean move. Since there is an opposite strategy of the blue ocean strategy called a red ocean move, it is important to explore a move for this strategy and analyze pros and con of the red ocean move.
What is the Blue Ocean Strategy?
The term blue ocean is rather new, although it is a strategy that has been with us as long as selling something for profit
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As mentioned in the Harvard Business Review titled the Blue Ocean Strategy, “Technological advances have substantially improved industrial productivity, permitting suppliers to produce an unprecedented array of products and services.” (Chan and Lee, 2004)
Creating a Blue Ocean Move
A blue ocean move is about the finding products for the customers, not finding customers for the products. To create at a blue ocean move, a company needs to create something that doesn’t exist. I think a service that would be a blue ocean move would be having video chat capabilities from a mobile device for a certain customer service department of any given company. Some companies have dipped their toes in doing video calls, but the customer usually has to be at the actual location of the company and talk to somebody via video calls that is located elsewhere. I think consumers would find this to be using because it easier to understand customer service issues face to face versus just speaking to someone on the phone. This would be a blue ocean move because no one is doing this has a service to their customers.
Red Ocean Strategy
The red ocean strategy is the opposite of the blue ocean strategy. The red ocean just adds another product that is already similar to an existing industry. For example, a red ocean would be cell phones. Creating another cell phone would just mean there is a lot of pressure to make customers want the new

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