Blue Ocean Strategy
Michelle Webb
MKT/421
21 April 2015
Professor Phyllis Levith

Blue Ocean Strategy concept was derived from a book that was written by W. Chan Kim and Renee Mauborgne title Blue Ocean Strategy (2004). The Blue Ocean Strategy concept describes how organizations should strive to obtain ways to work in a market place where there is not a lot of competition. Kim and Mauborgne stated how organizations can succeed without having to battle the competition. In order to succeed, the organization would need to create a “blue ocean” market that would increase growth. The strategic planning that drives Blue Ocean Strategy is for an organization to discover what separates them from other organizations. As the organization finds ways to differentiate itself from other organizations, the organization will not necessarily outperform the competition but create a new market space. This strategy will supposedly make the competition seem irrelevant. Blue Ocean Strategy is an important tool to use for businesses that may want to sell its product with very little or no competition. Blue Ocean strategy can also be a useful tool for individuals or organization with a desire to start a new business on a small scale budget. Netflix begin as a mail delivery DVD rental service. In 1999, Netflix begin its subscriptions services. Ten years later, Netflix was able to offer consumers 100,000 titles on DVD and had over 10 million subscribers ("Netflix", 2015). Netflix became one of if not the world’s largest and most influential movie supplier. The company goal was not only to make it easier for customers to rent movies but also to find ways to eliminate consumers having to pick up and return DVD’s. Netflix strategy provided customers with convenience and a wide range of entertainment options. Netflix provides their customer with the options at the touch of a button with services being provided on the internet as well as cell phones. The consumer can watch TV and or movies anytime and anywhere with their subscription. Netflix’s strategy was to establish a blue ocean of undisputed market space within the video rental industry. Netflix strived to innovate and maintain the high- quality level of service that would exceed customer’s expectations. The basis of the blue ocean strategy is Value Innovation. It states that instead of focusing on ways compete with competitors; you should concentrate on making the competition irrelevant. In other words, establish and maintain your business like it is the only organization there is no competition. Focusing on making the competition irrelevant can be accomplished by establishing more value for consumers. According to Kim and Mauborgne, “by driving down costs while simultaneously driving up value for buyers, a company can achieve a leap in value for both itself and its customers” (2004). Red Ocean Strategy is a marketing strategy that has analogized as being in shark infested waters with all the sharks after the same prey. Red Ocean