Blue Ocean Strategy Idea

Blue Ocean Strategy
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Blue Ocean Strategy
Introduction
Many theories exist in the business world that aim at guiding business individuals and organizations in decision making so that they can remain relevant in the market. The blue ocean strategy is such that theory that has been adopted by millions of business entities in accomplishing their goals and objectives (Carton, 2020). Ideally, the strategy is a theory that is designed to create an uncontested market space which makes competition an irrelevant aspect. Due to the changing business needs in the modern world, entities often look for innovative inputs that can put them in a competitive advantage over others in the same market niches (Carton, 2020). With the blue ocean approach, businesses tend to create new demand in the market and find solutions which is difficult for their competitors to match. Thus, after creating demand, they offer the products or services to satisfy consumer needs (Carton, 2020). Instead of competing for the existing market demand, businesses utilizing this strategy have an objective of expanding the market so that they can benefit more. Research indicates that this strategy has been implemented successfully by millions of businesses that seek to expand their market coverage as well as maintain a long term success in the market.
Definition of Terms
Focus is defined as concentrating on a particular aspect of business with an aim of achieving uncontested advantage over competitors. With the blue ocean theoretical strategy, businesses often focus on identifying a particular element of the business within the niche they operate in. the objective is to create a value proposition for the product or service overall. In so doing, a business sis able to uniquely identify and segment itself from its competitors. In relation to this, adopting this can create an environment where the business entity has a greater competitive advantage over others in the same niche.
Additionally, divergence is the practice of breaking away from the traditional norms of operating business with an aim of being more successful. In an ideal situation, most businesses often adapt the existing traditional business approaches of operations. Thus, they may find it challenging to fight with the competition in meeting the consumer needs. Considering the blue ocean strategy, businesses often adopt divergence by introducing new and unique products and services that are more difficult for the competitors to challenge. This, in the long term, the entities using the divergence tactic gain a greater competitive advantage.
A tagline is a short and catchy phrase that is used to communicate the brand image of a company. The tagline is designed to ensure that consumers understand the value proposition of the products or services offered by a business. In the blue ocean strategy business entities often utilize catchy taglines that sets them apart from the existing competitors. This way they are able to convince the existing and prospective consumers on the value proposition of their products.
Four Action Framework
Chan Kim and Renee Mauborgne who authored the blue ocean strategy also developed the four action framework. This is a tool that was used to help companies identify the critical success factors within their market environments. Ideally, businesses need to identify the most crucial elements that can pivot their products and services to not only meet the consumer needs but also be more beneficial to them in terms of profits and brand appraisal (Madsen & Slåtten, 2019). The framework is based on four key actions; reduce, eliminate, raise and create. A business can adopt any of or more than one of these factors to streamline itself towards achieving specific goals (Madsen & Slåtten, 2019). In addition, the factors are critical in decision making as they influence the success of a business in a particular industry or market.
The “reduce” action factor is used to identify the elements within a business that are overemphasized. Over emphasis of certain elements could ultimately result in the overuse of resources as well as poor competition within a certain market segment. Thus, to ensure that a business operates under optimal conditions, the reduction of the unnecessary resources is necessary.
Additionally, the eliminate factor is important in a business. It involves the identification and removal of the elements that are considered unnecessary within the industry. By totally removing them from the market environment, a business can utilize the resources to focus more on elements that help in the creation of high competition with similar businesses (Carton, 2020).
Furthermore, addin...