What is Blue Ocean Strategy give some examples?
The first example of blue ocean strategy comes from computer games giant, Nintendo, in the form of the Nintendo Wii. The Nintendo Wii launched in 2006 and at its heart is the concept of value innovation. This is a key principle of blue ocean strategy which sees low cost and differentiation being pursued simultaneously.
Why is it called blue ocean strategy?
A blue ocean is an analogy to describe the wider, deeper potential to be found in unexplored market space. A blue ocean is vast, deep, and powerful in terms of profitable growth.
What are the elements of blue ocean strategy?
With its integrated approach, blue ocean strategy shows how to align the three strategy propositions – value, profit, and people – to ensure your organisation is aligned around your new strategy and that it creates a win for buyers, the company, and for employees and stakeholders.
What is the primary objective of blue ocean strategy?
The goal of a Blue Ocean Strategy is for organizations to find and develop blue oceans (uncontested, growing markets) and avoid red oceans (overdeveloped, saturated markets). A company will have more success, fewer risks, and increased profits in a blue ocean market.
Is Netflix a blue ocean strategy?
From offering online movie rentals in 1997 to being able to predict what movies subscribers would be interested in watching, Netflix is a company that has demonstrated the blue ocean strategy particularly well. Learning how to apply the Blue Ocean Strategy is not an easy task.
Which companies use blue ocean strategy?
Blue Ocean Strategy ExamplesBlue Ocean Strategy Examples:iTunes. With the launch of iTunes, Apple unlocked a blue ocean of new market space in digital music that it has now dominated for more than a decade. Bloomberg. Canon. The Ford Model T. Philips. Quicken. Ralph Lauren.
Does Apple use blue ocean strategy?
Apple use blue ocean strategy to remove competition and create a new market for new products. Blue ocean strategy helps to the Apple company to develop their own market rather than trying to beat competitors to reach top in the market.
Is Starbucks a blue ocean strategy?
Starbucks is an excellent example of a company that has successfully implemented the Blue Ocean Strategy. Instead of focusing on their coffee, they have developed the Starbucks brand as different, a strategy still unexplored in this sector.
Is Amazon a blue ocean strategy?
Elements of a Blue Ocean Strategy Strategies such as their Kindle E-Reading solution, Drone Delivery, Cloud Based Computing, Amazon Prime, or One Hour Delivery are all examples of Amazon creating uncontested space (ie. Blue Oceans) in which to compete far away from anything their competitors can do.
What does Blue Ocean mean?
Blue ocean is a slang term born in 2005 and continues to be used today. A blue ocean is considered (from a marketing standpoint) an unexplored territory in an uncontested market space. In their book, Kim and Mauborgne wrote about 150 blue ocean strategies that have been undertaken by companies over about 100 years.
What is Blue Ocean and Red Ocean?
Cutthroat competition turns the ocean bloody red. Hence, the term ‘red’ oceans. Blue oceans denote all the industries not in existence today – the unknown market space, unexplored and untainted by competition. Like the ‘blue’ ocean, it is vast, deep and powerful –in terms of opportunity and profitable growth.
What type of business strategy does Amazon use?
Amazon’s business strategy is based on one primary goal: to seamlessly link the digital and brick-and-mortar shopping experience in order to be part of every single purchase made.
What is Amazon’s main goal?
Our mission is to continually raise the bar of the customer experience by using the internet and technology to help consumers find, discover and buy anything, and empower businesses and content creators to maximise their success. We aim to be Earth’s most customer centric company.
What makes Amazon unique?
Amazon gets everything right when executing customer orders. They select products and services that customers want and need—and leverage distribution centers across the globe that allow them to quickly ship products. Amazon also has excellent vendor relationships that allow them to offer customers discounted pricing.
What are the three pillars of Amazon?
Amazon has three big pillars: the retail marketplace, Amazon Prime, and Amazon Web Services.
What is Amazon’s strategy?
The business strategy of Amazon consists of focusing on investing in technologies, enhancing its logistics applications, improving its web services by fulfillment capacity, M&A strategy, AWS segment, R&D activities in logistics, and experimenting with Fintech. Let’s have a brief look at some of those.
What are Amazon’s keys to success?
Amazon believes its foremost duty and the key to success is to delight its customers, and sees its primary goal as inventing on behalf of customers. Embrace failure. Bezos encourages risk-taking and experimenting, and believes that the company’s successes will make up many times over for its failures.
What is Amazon’s growth strategy?
Amazon’s secondary intensive growth strategy. This strategy aims to generate more revenue from markets where the company currently operates. Amazon is dependent on its consumers, which is why when consumerism grows, the business by default grows.
What is Amazon’s competitive strategy?
Range, price and convenience are placed at the core of Amazon competitive advantage. The global online retailer operates with a razor thin profit margin and succeeds due to a combination of economies of scale, innovation of various business processes and a constant business diversification.
What is Amazon’s weakness?
Amazon’s Weaknesses (Internal Strategic Factors) Imitable business model. Limited penetration in developing markets. Limited brick-and-mortar presence.