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Blue Ocean Strategy Paper

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Blue Ocean Strategy is recently established marketing concept derived from the masterminds of W. Chan Kim and Renée Mauborgne. Blue ocean strategy is commonly described when a company develops a service or product generating a market platform that commonly prevents competitor from having any significance while reaching new consumers and lessening cost (lexicon.ft.com). In this marketing concept, red and blue oceans were designated to signify the division. Chan’s idea has high importance as it is relevant in the current marketplace. It is helpful for entrepreneurs, and business owners looking to choose and generate the appropriate market for their goods and invest in the right areas (Schawbel, 2014). Red Oceans versus Blue Oceans

In one regard, globalized production, international channels of data, and technological advances have been instrumental heightened industry production. This enabled suppliers to manufacture a wide assortment of goods and services (Schawbel, 2014). In another regard, any substantial proof of a heighten sense of demand. Industries suffer from hastened commoditization of products and services, price wars, and contracting markets. Markets result in a bloody Red Ocean of fighting over shrinking the profit pool when competing in a head-on. It is imperative for companies to move from red oceans of bloody competition to blue oceans of profitable growth (Schawbel, 2014). Apple Products

A great example of a move influenced by Blue Ocean would be that of Apple. Blue Ocean has opportunities that are constantly presenting themselves be it appeal or not so appealing, and Apple took advantage (Schawbel, 2014). This company a manufacturer of the personal computer (PC) in what was considered to be a mature, yet an unappealing market. With the consumer electronics industry suffering and staggering at low-profit margins, Apple made a Blue Ocean move. They strategically began producing a line of products such as the iPad, iPhone, iTunes, and of course the MacBook laptops. They have iPad Minis and Nanos, a series of iPads and iPhones (Schawbel, 2014). Through this series of, Blue Ocean influenced product, Apple was able to obtain significant growth in revenue that had a long term span. Apple was able to create a self-sustaining entity that only government mandates could penetrate to keep Apple from totally monopolizing the market. The idea behind Blue Ocean concept is for companies to create a market platform for themselves as opposed to finding an existing gainful market. Red Ocean Move

What tends after a company has made a Blue Ocean move as it slowly turns into a red ocean again? This is because it is able to be duplicated and will be once other companies see how lucrative it is. This is positive, because it prevents one sole company from monopolizing the market and pushes companies to create more Blue Ocean experiences, which brings innovation. On the other hand, it is has a disadvantage because in attempts to mimic another product, the quality sometimes lacks and as advances are constantly being made it makes it difficult to stay current with the times. This is great for the economy but can be a financial detriment to domestic household in our society who cannot afford the upgrades. Android technology is Apples leading competitor. They are responsible for the infamous smart phone. They have partnered with several cell phone providers to make their service more available to customers.

The Blue Ocean Strategy has extremely powerful, paradigm-changing concepts that can be utilized by any company to start a mass exodus from the red ocean they have cohabited and began to remedy a blue ocean full of profitability and success. It is evident that Android impacted the cell phone industry as did Apple. Apple was a great example of Blue Ocean and Android and Smartphone of a Red Ocean Exodus in the same industry. Apple though they began with the PC was able to diversify and separate themselves from their competitors by moving to offer a wow factor, and introducing elements and features that were unrivaled. Companies that take advantage of the Blue Ocean Concept can expect substantial growth and revenue and a pool of unprecedented success.


Harvard Business Review. Oct, 2004, vol 82 Issue 10, p76-84, 9p. 1 diagram, 2 charts
Kim, W. Chan’ [email protected] Mauborgne, Renee [email protected]

Schawbel, D. (2014, February). W. Chan Kim: How Entrepreneurs Can Find Their Blue Oceans. Forbes,Retrieved from http://www.forbes.com/sites/danschawbel/2014/02/14/w- chan-kim-how-entrepreneurs-can-find-their-competitive-edge/

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