This strategy tries to develop new market space or Blue Ocean in order to make competitiveness of the existing rivals irrelevant. This strategy also helps to break value-cost trade off and enhance the market share and customer base…
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Due to these underlining causes, the strategy of BOS is offered high concentration by the organizations operating in this era, among many other rival players (Kim & Mauborgne, 2013).
The product, Yellow Tail of Casella Wines of Australia needs to implement the strategy of Blue Ocean as it might prove effective in developing new markets as well as wide range of customers. Other than this, by implementation of Blue Ocean strategy, the organization of Yellow Wine might offer more concentration over wine market as compared to others. This strategy might highlights its market segments in a more effective way such as wine drinkers, easy to go drinkers like beer, cocktail, soft drinks etc as well as any individual desiring to attain a refreshing feeling. However, in order to increase its range of customers or to reach beyond the existing demand, extensive promotion or campaigns is essential.
Other than this, the organization of Yellow Wine is implementing Blue Ocean in order to reduce driving cost by amplifying the values of the products. This might prove extremely effective for the customers, thereby amplifying their demand and loyalty over the brand among many other rival players. By doing so, maximum extent of the customers desiring to drink wine or beer might get attracted towards the product line that may increase its productivity in the market among others. Along with this, the position and loyalty of the product line of wine might also get improved to a significant extent.
Hence, due to these underlining reasons, the organization of Casella Wines might try to implement Blue Ocean strategy so as to amplify its portfolio and brand value in this competitive market among many other rival players. So, the popularity and demand of Blue Ocean Strategy is increasing day by day.
Red Ocean Strategy is a strategy used to compete with the existing rival players
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This research will attempt to present the forces that shape competition. Porter identifies these forces as the following: threat to entry; the power of suppliers; the power of buyers; the threat of substitutes; and, rivalry among existing competitors. Creation of strategy for the Client Services Division should thus take these forces into account so as to have a successful strategy in the long- run.
By doing this the Wii effectively positioned its product where the competitive forces were weakest (Porter, 2008). Scott (2008) elaborates that whereas Sony and Microsoft were concentrated on differentiating their products in terms of providing cutting-edge game play to demanding customers, Wii focused on reaching new customers segments.
The Blue Ocean Strategy, on the other hand, focuses mainly on making fresh demand in spaces where there is no demand at all, thus, building the pie superior as a substitute by fighting over who gets to have the bigger piece of the pie. Since the introduction of Wii video-game scheme, Nintendo has grown victorious as it has been able to make the opposition immaterial.
Introduction The Four Actions Framework in the Blue Ocean Strategy (BOS) is used to reconstruct buyer value elements in order to craft a new value curve for a given industry (Kim & Mauborgne, 2010). The Eliminate-Reduce-Raise-Create Grid is a tool that is used together with the Four Actions Framework to drive companies to actions of eliminating and reducing as well as raising and creating new factors that shall underlie their blue ocean.
The company’s fortunes shone in the 90s beginning with the integration of music and movie sales in 1991, acquisition by Kmart Corporation in 1992 and spin off and IPO in 1995. Borders’ shares traded at an all-time high of $44.88 on February 4, 1997. By the end on that decade, Borders had expanded into 256 superstores that had mean sales per square foot of US $256.
The company promotes the message of wellness through exercise and positive thinking; the message has been embraced by the masses through effective use of their unique marketing techniques. According to Gray single women are expected to out-earn their male counter parts in the near future so they represent a very attractive consumer base for major apparel manufacturers (Huffington Post, 2012).
Blue ocean strategy refers to creation of new and uncontested markets spaces whereby competition is irrelevant due to new customer value (Kim and Mauborgene 3). On the other hand, red oceans represent industries that are currently in existence and where competition rules are well defined.
According to the paper over the past years the goal of different companies has become to make their brand relevant or the competitors irrelevant. Many leading names of today have done this in order to make their mark in the world. Starbucks is a blue ocean it has been so ever since it started but slowly and gradually they are moving towards becoming Red Ocean which means to compete with others.
The five forces mentioned by Porter are used to analyze the position of Skoda cars and the results are shown below:
The five forces model is combined with the strategic management tool, SWOT analysis to develop a competitive strategy based on differentiation.
8 Pages(2000 words)Research Paper
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