Sustainability of the Blue Ocean Concept - Coursework Example

Sustainability of the Blue Ocean Concept By Student’s Name Code+ course name Instructor’s Name University Name City, State Date Sustainability of the Blue Ocean Concept Introduction In blue oceans companies create a market space with greater demands to create more room for profit, growth and development. In read oceans industries and companies lack effective marketing strategies and therefore have to fight for the little chances available. Here the market is full to capacity and therefore there is no room for expansion. The blue oceans have more space and therefore there are more chances for innovativeness, creativity and other expansion strategies. A blue ocean can emerge from a red ocean at a point where a company goes ahead to give out extra services from the existing company. According to Kabukin (2014), the blue oceans adopt strategies of adopting quality services and goods that are sustainable in nature. The only issue is the adoption of a high quality market space and therefore competition as a major factor in any market space cannot be a hindering factor. These new market spaces are highly characterized by large profits. This is majorly because of selling value of the new company or industry. It is evident that these strategies have been admired by a variety of business groups, states and also at personal level. Most researchers have evaluated the strategies on thinking big and the act of more creativity in the business arena to facilitate market across the world (McManners, 2014). Sustainability in Performance According to Siegemund (2008) the capacity or efficiency of any given system has to be maintained for several decades. In this case, the present systems have to be maintained so that they can be in position to serve future generations in the same way and capacity. At the same time the system has to grow and develop in a manner that everyone gets satisfied. According to Mauborgne and Kim (2005), profits should be realized by individuals, government and even individuals. All the new industries and companies that have not existed should be in a position to sustain them without interfering with the environment, social setup and any other natural setting. In this case, the system is not supposed to deplete the natural resources, disrupt the economy or degrade the culture of any government. Instead, benefits should be realized in terms of job creation, sustaining the economy of a nation and provision of quality services (Lainos, 2011). The Blue Ocean Concept According to Gin (2014), the blue ocean concept has been considered to have more advantages than disadvantages. This strategy has been highly adopted by various businesses, nations and individuals. In this case, new industries are created from the existing companies and industries. For instance, thirty industries can give rise to around one hundred and fifty new ones with the aim of diversifying on service provision. The issue of competition does not arise when it comes to the creation of new markets. Competition is only experienced within the existing markets. Osterwalder and Pigneur (2009) point out that such industries do not lack some sense of innovativeness and quality. Profits on the other hand are very minimal due the fact that there is much luxity within the management. According to Siegemund (2008), the existing systems are not sustainable in nature and therefore cannot offer quality sevices for quite sometime. Here the owners have to apply all strategies to win buyers and sellers. This makes competition order of the day in a move to create some profits. Existing market spaces do not apply any innovative and advanced strategies to aid growth and development. Therefore such industries are in the capacity of serving only the generation existing at that particular time (Gin, 2014). On the other hand the new space markets comprise of industries that emerge from the existing ones. This is in view of expanding services that were initially offered by the existing industries. Unlike the red ocean, competition is not a major factor in the blue ocean. The new industries automatically strive within the business world simply because of the quality the services offered and the value that they posses. A lot of growth is realized within a very short period of time. Another factor that keeps such markets going is the type of profits that are also realized with time. According to Porac and Rosa (1981), buyers present themselves in such markets and don’t have to be fought for because of the marketing strategies these industries employ. The ocean is clear and the major strategy that is focused on is the concept of innovativeness and creativity. When creativity is empoyed in any new strategy a sense of sustainabilty is also created in the long run. Most new market spaces strategies will make sure that they incoporate business skills that favours the generation at hand. By ensuring that there is positive growth and development accompanied by large profits, a new space market is capable of reaching out to various groups and generations for a number of decades ahead (Kim & Renée, 2015). Fogel (2016) argues that the business world and most governments have adopted the blue ocean concept for the sake of development and growth. A number of approaches have been initiated to encourage the emergence of more new market spaces. For instance, several learning institutions have incoporated such studies in their curriculum (See, Kim & Mauborgne, 1997). The learners are able to acquire a number of enterpreneuer skills at their end of their studies. Critical and creative learning have also been made compulsory in most specialised studies. The main aim of this type of learning is to equip students with a variety of skills that they can apply while out of school. Most students are moulded to form part of the group that create jobs other than adopting the culture of seeking employment. Randall (2015) notes that several institutrions have also come up with research centers to facilitate creativity and innovative programs. Extensive researvh in the business world gives more room for experiments and adoption of new strategies. Modern and advanced technologies have also play a major role in the emergence of new space markets. Globalization links majority of businesses across the world hence facilitating exchange of goods, services and ideas. Transport and communication network also encourage expansion of services and quality goods because the buyers and sellers are reached with a lot of ease (Mauborgne & Kim, 2004). However a majority of new space markets that have emerged purposing to grow and develop at times find themselves in a state where they are supposed to put and tap goods and services into yhe existing markets. For instance, according to Kim and Mauborgne (2015), Google came up with a plan of inventing new removable computers. The new computers were supposed to be glass like computer gadgets. The existing ones comprised of groundbreking applicable gadgets. According to Alhaddi (2014), the new market was created to advance the customer experience and launched with a high capacity of fanfare. The new gadget priced at 1500 US dollars later on turned down the happiness and anxiety that people had initially developed. This is because the new gadget lacked some sense of fashion and this was worsened by the privacy issues that emerged after its launching. Later on the glass under the wearable technology had to be taken back so that the design can be adjusted. This is just one of the many examples of the red ocean traps (Kim, & Mauborgne, 2015). As red oceans become more crowded with reduced growth prospects and profits, supply becomes more than demand and this therefore minimizes quality performance. Red oceans have been the way to go in the business world. However with increase in supply than demand, the markets become more squeezed with lack of sustainability in performance. This has therefore attracted the creation of more industries from existing markets. They emerge with different time and evolve from time to time. Investors have adopted this move in order to sustain high perfomance with a lot of profits and growth (Laszlo& Zhexembayeva, 2011). Conclusion Its evident that managers should be able to come up with good strategic steps. It can only be possible by creating profitable new industries while at the same time anchoring the existing markets so that they cannot get a chance of entering the blue ocean. A new market space is heavily determined by its roots, that is the existing market space. An open competition results into a red bloody ocean as the opponents strive to reduce the profits.Althoug a succesful person has to outdo all other rivals and competitors, competitio becomes of no use the moment the blue oceans are created. Blue ocean creators employ innovation without any competing factor to beat the existing market space. Most existing market spaces that want to create more wealth in history have to incoporate strategic logic plan such as value innovation. It is also clear that there are neither perfect inndusries or market spaces, the only difference comes in with the strategic plans that are emlpoyed at any given time in histroy. Finally markets need to go far beyond competition and embrace growth opportunities and new profits by adopting the blue ocean concept. Bibliography Alhaddi, H. (2014). Blue Ocean Strategy and Sustainability for Strategic Management . Retrieved April 13, 2016, from 2014 3rd International Conference on Business, Management and Governance: http://www.ipedr.com/vol82/016-ICBMG2014-C00008.pdf Fogel, S. D., 2016, Strategic Sustainability: A Natural Environmental Lens on Organizations and Management, Routledge Publishers, London. Gin, O. K., 2014, Excellence and Sustainability: USM and the APEX journey. Volume 1: The Ahead (Penerbit USM), Volume 1, Penerbit USM, Pulau Pinang. Kabukin, D. 2014,Reviewing the Blue Ocean Strategy. Retrieved April 13, 2016, from Management and Governance: http://essay.utwente.nl/65556/1/Kabukin%20Dmitrij_MA_Management%26Governance.pdf Kim, C. W., & Renée, M. 2015. Key Points Of Blue Ocean Strategy. Retrieved April 11, 2016, from Blue Ocean Strategy: https://www.blueoceanstrategy.com Lainos, I. 2011. Red Ocean vs Blue Ocean Strategies. Retrieved April 13, 2016, from University of Piraeus: http://dione.lib.unipi.gr/xmlui/bitstream/handle/unipi/4443/Lainos.pdf?sequence=2&isAllowed=y Laszlo, C. & Zhexembayeva, 2011, Embedded Sustainability: The Next Big Competitive Advantage, Greenleaf Publishing, Sheffield city. Kim, C. W. & Mauborgne, 2015, Blue Ocean Strategy, Expanded Edition: How to Create Uncontested Market Space and Make the Competition Irrelevant, Harvard Business Review Press, Harvard. Mauborgne, R., & Kim, W. C. 2005. How to Create Uncontested Market Space and Make the Competition Irrelevant. Retrieved April 13, 2016, from Blue Ocean Strategy: http://www.theclci.com/resources/blueoceanstrategy.pdf Mauborgne, R., & Kim, W. C. 2004, October. Blue Ocean Strategy. Retrieved April 13, 2016, from Harvad Business Review: http://info.psu.edu.sa/psu/fnm/ymelhem/blue%20ocean%20str.v2.pdf McManners, P., 2014, Corporate Strategy in the Age of Responsibility, Gower Publishing, Ltd., Surrey City, UK. Pauli, A. G., 2010, The Blue Economy: 10 Years, 100 Innovations, 100 Million Jobs, Paradigm Publications, NEW York. Osterwalder, A. & Pigneur Y., 2009, Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers, OSF Publishers, Peoria. Porac J. & Rosa, J. A. , 1981, For discussions on how market boundaries are defined and how competitive rules of the game are set, see H.C. White, “Where Do Markets Come From?” American Journal of Sociology, 87: 517–547. Randall, R. M. 2015. Value pioneering – how to discover your own ‘blue ocean’: interview with W. Chan Kim and Renée Mauborgne. Strategy & Leadership. Vol. 43 No. 2 2015, pp. 11-14 See, C. Kim and R. Mauborgne, 1997, Value Innovation: The Strategic Logic of High Growth,” Harvard Business Review, 75/1 (January/February 1997): 102–112 Siegemund, C., 2008, Blue Ocean Strategy for Small and Mid-sized Companies in Germany: Development of a Consulting Approach, Diplomica Verlag, Hamburg. Appendix A figure on sustainability and innovation blue ocean concept Read More