Revolution of Blue Oceans

Findings

A blue ocean creation denotes industries that are not in existence as their demand not fought over through competition but through creation. Red oceans are those oceans that are in existence where the competitive rule is understood and the boundaries are set as the companies try to outperform each other and have a competitive advantage over the others in order to have a greater share of the demand in existence (Kim &Mauborgne, 2004). There is a huge capacity in the companies to create new and re-create existing ones as a result of the deep changes experienced today. The element of technology has sphere headed the creation of the blue oceans as it has created improvement, increased productivity and better product and services. Ford, Apple, and Dell are some examples of the new entrant while Palace theaters, Compact PC serves and CTR’s are examples of an incumbent in the blue ocean industries (Kim &Mauborgne, 2004).

Problems

The blue ocean industries have faced the challenge of the traditional strategic analysis that gives a little explanation to power the industry hence no consistency success. As a way of solving this problem, the industry has been able to come up with the right strategic move such as establishing corporation so that the companies may know what drives them (Kim &Mauborgne, 2004). The industries have moved to the product of strategy and managerial action in order to create growth and profits over time.

Critical issues

Barriers to imitation are a critical issue to the blue industry as there are credible challenges as it attracts a large number of customer’s immediately after its creation. The consistency pattern in the field is critical as it should be maintained to enhance its success otherwise there will be a boycott of the industry (Kim &Mauborgne, 2004).

Recommedation

The industry is faced with a significant subject of ensuring that there is a realization of strategies that can create and capture a different logic to be used rather than that of the red ocean there will be more blue oceans in the future.

 

 

 

 

 

 

 

 

 

 

 

Reference

Kim, W C. & Mauborgne, R (2004). Blue Ocean Strategy. Harvard business