Red Ocean And Blue Ocean Strategy Essay

In the world of business there argon many rooms to work, and they are very different, in this case im qualifying to talk about the glum nautical outline, and the basic for this strategy is that companies quest no challenges themselves, not with other companies, on the other hand we verbalise that a accompany has a rosy ocean strategy when they postulate with other companies, and thats why these 2 are different, not only in the color, also in the purpose.BLUE OCEAN STRATEGYThis concept comes from a book with the same name Blue Ocean Strategy (Harvard occupation Review Press 20050), by W. Chan Kim and Renee Mauborgne. The primary concept si empty the bloody path of business, and thats how we know the departure oceans, instead of looking how to compite with the others, stimulate new ways to work and free of competitors. The main idea of this is to arrive at a model of business with low damage and that low cost be the differentiation, when a Company do that, progress t o it the blue ocean. To get together the differentiation and the low cost there are 4 key questions that apport some basic close up that is neccesary to get in the blue ocean. Raise What factors should be raised well above the industrys shopworn? Eliminate Which factors that the industry has long competed on should be eliminated? number Which factors should be reduced well below the industrys standard? Create Which factors should be created that the industry has never offered?For some companies its complicated reply this questions, but in fact, this are some elements that companies in the red ocean, understand in the opposite way. In the blue ocean your Company is the wiz element, unsexd as the title indicates, you have all the water for yourselve. They occupy to switch over the concept of competition, and focus on the competition inside the Company, that content that they need to check every idea that comes from the Company. An example of blue ocean strategy is cirque du solei, they take the concept of circus and changed it, instead of zoology the main part of the circus is the estravagant dance and other things like opera and ballet, also thecustomers are different, mostly of them are adults, unnatural for a general circus. Another example comes from Nintendo and their revolutionary product, wii, that comes i 2006 and with that, Nintendo offers an original and fun way to play, besides their principal competitors sony and Microsoft, they focused in create an unique product, and also, without a powerful cpu Nintendo reduce the production cost and give a exciting way to play.RED OCEANS STRATEGYThis is the normal market model, the place where companies confront other companies and swim in the bloody sea. Companies try to subdue their rivals to grab a greater share of existing demand, usually by marginal changes in offering level and Price. These companies are normal for the pile and society, and in fact the majority of companies in some form prac tices the red ocean strategy. This companies are in constant fight with others, and they are forever and a day watching the prices of the competitors, and offer a better Price, its a simple concept that doesnt have science they are just normal companies doing the same stuff always, watching the actions of others and always in danger. This is a concept that doesnt have a lot of science, its just the normal market that we are seing evey day.CONCLUSIONThe red ocean strategy maybe Works for big companies, but this doesnt define i fis the best option, companies should use the blue ocean strategy because when a lot of companies do the same, the results are going to be the same, and what a Company look for is to get bigger than what they were yesterday. In the concept of blue ocean strategy i dentify that the insertion has a special role in this model, they need to create something different from the rest, and when they do that, they are innovating, but this innovation needs to be unique , that means that only the Company that introduce the change can afford to repeat that unique process. The blue ocean strategy is the best option for every Company, including big companies.REFERENCEShttp//thomasafowler82.wordpress.com/2013/09/10/what-is-red-ocean-strategy-and