4.4 Blue Ocean Strategy
W. Chan Kim and Renée Mauborgne has published a book in 2005 which explains businesses to find market places which are free from competition. They are called uncontested market or “blue oceans”. The markets where competition exists are called “Read Ocean”, in this market rivals compete vigorously which leads to lesser profit margins. If businesses create Blue Oceans, competition is irrelevant. In order to create Blue Oceans businesses may have to create new industry or re-create existing industry.
There are three parts to implement Blue Ocean strategy. 1. To find blue oceans businesses can consider “four action frame work”. 2. Principles of blue ocean strategy formation. 3. Implementation principles of blue ocean strategy.
1. To find blue oceans businesses can consider “four action frame …show more content…
Groupe Danone Water Division, Nestlé etc. in the soft drinks segment and Kraft, Mondelez in salted. This can by applying ploy on these business potential products patents can be taken by PepsiCo even if they are not using. PepsiCo can expand or threaten to expand the countries where competitors may expand. This may not be possible to nestle and Coca-cola s they are present in most of the countries. PepsiCo have strong strategic position at present, which can still be improved by take overs and mergers as it saves time to become number 1 position. Moreover, PepsiCo have to consider the resources available for the implementation of the strategy.
Implementation of Blue Ocean Strategy helps PepsiCo in long run. PepsiCo can restructure the current markets to create Blue Oceans and also they should find Read Ocean for effective utilization of resources. Read Oceans may be profitable but its may be utilizing resources in effectively. PepsiCo should appoint specialist team to find Red Oceans and create Blue Oceans to be more profitable and to grow
W. Chan Kim and Renée Mauborgne has published a book in 2005 which explains businesses to find market places which are free from competition. They are called uncontested market or “blue oceans”. The markets where competition exists are called “Read Ocean”, in this market rivals compete vigorously which leads to lesser profit margins. If businesses create Blue Oceans, competition is irrelevant. In order to create Blue Oceans businesses may have to create new industry or re-create existing industry.
There are three parts to implement Blue Ocean strategy. 1. To find blue oceans businesses can consider “four action frame work”. 2. Principles of blue ocean strategy formation. 3. Implementation principles of blue ocean strategy.
1. To find blue oceans businesses can consider “four action frame …show more content…
Groupe Danone Water Division, Nestlé etc. in the soft drinks segment and Kraft, Mondelez in salted. This can by applying ploy on these business potential products patents can be taken by PepsiCo even if they are not using. PepsiCo can expand or threaten to expand the countries where competitors may expand. This may not be possible to nestle and Coca-cola s they are present in most of the countries. PepsiCo have strong strategic position at present, which can still be improved by take overs and mergers as it saves time to become number 1 position. Moreover, PepsiCo have to consider the resources available for the implementation of the strategy.
Implementation of Blue Ocean Strategy helps PepsiCo in long run. PepsiCo can restructure the current markets to create Blue Oceans and also they should find Read Ocean for effective utilization of resources. Read Oceans may be profitable but its may be utilizing resources in effectively. PepsiCo should appoint specialist team to find Red Oceans and create Blue Oceans to be more profitable and to grow