Blue Ocean Strategy

Blue ocean is a slang term that comes from the book “The Blue Ocean Strategy,” by W. Chan Kim and Renee Mauborgne. Blue ocean describes the opportunities of vast, untapped market spaces that can be developed by expanding market boundaries or launching new industries. In any established market, many businesses are in constant battle with each other for sales and customers. This is compared by a blue ocean because in a blue ocean many sharks will fight to the death for the ocean. This is also an example of red ocean; because of the battle between the many sharks, just like businesses fighting for customers and sales, blood appears from the battle. A majority of businesses are looking for their own blue ocean to work peacefully in but that may be hard to find in any type of business category. A product or service that might be considered a blue ocean move and why

A product that could be considered a blue ocean move is “Yellow Tail.” “Yellow Tail” is a wine that is sold in many different stores in the U.S. There are a few reasons why it is considered a blue ocean example. For “Yellow Tail” on the wine bottle there is no wine terminology found, the only thing found on the bottle is the flavor of the wine. “Yellow Tail’s” aging is not a great big process for them or the flavor of wine. “Yellow Tail” is also a young vibrant and fun wine for the customers to enjoy. The “Yellow Tail” is also a sweeter and easier wine to drink. It does not have such a harsh taste to itself. “Yellow Tail” wine also has a minimum selection like chardonnay for their white wine and shiraz as their red wine. An Alternative red ocean move for the same product or service along with the pros and cons of that strategy An alternative red ocean move for the same product would be the traditional wines. Traditional wines have the same image and description on the bottles that talk heavily about the type of wine and all other use of the wine terminology. Unlike “Yellow Tail” the traditional wines main step in great wine is the aging process and quality.

A great majority of wines all have an aging process that are over taken in to great consideration. Another thing about traditional wines is that a majority of them come from a prestige vineyard. Having all wines coming from a vineyard does not make the wine any more exquisite than the other traditional wines. For the traditional wines, the wine taste is different in all wines but some how still the same. The traditional wines like red wines will have a harsh taste to them while white wines are sweeter. There’s great competition between these wines because it may be hard to distinguish the different tastes between all the wines. Another thing with all traditional wines is that every wine company sells a great diverse range of wines that cover all varieties of grapes and any preferences the consumers may want.

For “Yellow Tail” they are the blue ocean strategy because they appeal to a bigger population than just the wine market. Though they appeal to a bigger population they do not have a great big selection of wines like traditional wines do. For traditional wines they have a red ocean strategy because they must compete with many other traditional wines out there in the wine market. Though they have a bigger competition they also have a great selection to choose from. Conclusion

For every product and service there will be a blue ocean and a red ocean that must be dealt with in the business in order to grow and carry on for the business. The business must determine how to make their product or service into a blue ocean strategy.

References:
http://www.ehow.com/info_7743376_importance-blue-ocean-strategy-business.html