The Blue Ocean Strategy

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.