The blue ocean strategy
is one that seeks to promote a market for a product that has little or no
competition. It seeks to encourage businesses to undertake those operations
where there is little competition or create new markets that have yet to be
explored by other businesses. Under such circumstances, it becomes possible for
the business not to operate under immense pressure, especially pressure
concerning pricing and cost of operations because in the end, they will make up
for any deficiency. The blue ocean strategy is one that is quite critical in
the modern world because it encourages to seek new niches in which they can be
able to advance themselves in such a way that makes them dominant within the
specific market. The discovery of new markets enables organizations to make
sure that they adapt to the new environment and gain the customers that they
need in order to attain as much profit as possible. Furthermore, it is
necessary to ensure that there is the promotion of means through which to
improve their product rather than focusing on rivals. Without rivals in the
market, it is likely that the major focus of the organization would be to develop
new products to fit into its niche instead of taking on competition that might
eventually gain a lead and perhaps push the organization out of business.
The blue ocean
strategy can be applied in a diversity of businesses and sectors. Because of
the relative flexibility that it provides businesses, it is not limited to only
one business and can instead be applied to a diversity of areas where it
becomes possible to promote the interests of the organization involved. This
strategy is essential because in the current highly competitive world, it is
common for organization to exist in a state of constant competition. Therefore,
the blue ocean strategy encourages organizations to seek out markets that do
not have a lot of competition of rivals and cultivate these markets to provide
a considerable advantage to the organization involved. Through the use of this
strategy, it becomes possible to make sure that there is the creation of a
system where there is the development of new products and services which can be
sold to consumers. Furthermore, the organization has the advantage of being
able to develop effective strategies aimed at bringing about the development of
new products that can attract consumers. The latter process is essential in bringing
about the achievement of market dominance because with few or no rivals, the
organization involved can take on the lead in product development that will
later only be imitated by rivals once they enter the market. A consequence is
that the consumers are more likely to place their trust in the organization’s
products because it was the first one to enter the market and it has had the
time to research and develop new innovations that cannot be easily beaten by
new entrants.
The current
market environment is one that involves organizations operating under intense
pressure to gain a market share while at the same time competing against their
rivals. This environment often creates intense pressure for the organization,
especially when it comes to pricing. When an organization comes under such
pressure in pricing because of the intense competition with its rivals, it is
most likely that its operations also come under threat. This is especially
considering that the organization is operating within a highly saturated market
where it is necessary to make sure that there is the promotion of the business
interests within a difficult environment. This type of market, because of the
high saturation that it has, is known as a red ocean, and it is the direct
opposite of the blue ocean because while in the former, the organization is often
at constant risk of having its operations interrupted, in the latter, the
market is still quite new and there are numerous opportunities to be pursued.
The blue ocean strategy seeks to encourage organizations to develop new markets
and products which they can be better able to advance with as little
competition as possible thus opening themselves up to innovation and research
that can help establish and strengthen their position within the market. It
also allows the organization involved to promote the achievement of a massive
market share when compared to a red ocean.
The blue ocean
strategy comes about because of the limited room to grow that organizations
encounter within the red ocean. It encourages organizations to look for avenues
through which they can achieve the goal of gaining an uncontested market share.
This process is highly significant because it involves a situation where the
organization has to develop a new market on its own in such a way that it not
only has dominance over the product, but also the pricing. Under such
circumstances, it becomes possible to make sure that there is the promotion of
a scenario where because of its market dominance, the organization has the ability
to conduct its operations with as little pressure as possible as long as its
major focus is to achieve success while at the same time making a profit. The
lack of intense competition within the blue ocean is highly critical to the
growth of the organization to such an extent that it becomes possible to bring
about high levels of performance. It also ensures that the organization focuses
more on the advancement of the quality of its products without worrying about
the pricing since because it is dominant in the market, it has the advantage of
being able to set the trend that its rivals are most likely to follow once they
gain entry. Therefore, by the time that other firms gain entry into the market,
the organization involved will have achieved dominance and cannot be easily
dislodged from its position.