Team : Hetong Xu; Jin Liu; Jieqi Jin. Blue Ocean Strategy 1. What is a blue ocean strategy? What is a red ocean strategy? Explain these from the perspective of company, competition, costs, and markets. Blue ocean strategy, as a business method, is about company creating a new market or industry where there is no competitor. Companies play not by traditional rules, never use the competition as a benchmark. They could ether create greater value for customers at a higher cost or create reasonable value at a lower cost. Thus, the name of the program – find a blue ocean, a new ocean to swim in. Red ocean strategy, as a business method be opposite to blue ocean strategy, is a head to head battle where the players of a particular segment…show more content… The authors criticize Michael Porter's idea that successful businesses are either low-cost providers or niche-players. Instead, they propose finding value that crosses conventional market segmentation and offering value and lower cost. 5. Explain the redefined relationship between “value” and “low cost” in blue ocean strategies. What is the traditional basis of “competitive advantage” in red ocean strategies? Value Innovation, the simultaneous pursuit of differentiation and low cost, is the cornerstone of blue ocean strategy. Value innovation focuses on making the competition irrelevant by creating a leap of value for buyers and for the company, thereby opening up new and uncontested market space. Because value to buyers comes from the offering’s utility minus its price, and because value to the company is generated from the offering’s price minus its cost, value innovation is achieved only when the whole system of utility, price and cost is aligned. In Red Ocean, the competition rules are already exited. Those companies in Red Ocean try to perform better to get more shares in market. So, competition is the theme of Red Ocean. If companies want to get competitive advantage in Red Ocean, the bases are 1. Compete in existing market space, 2. Beat the completion, 3. Exploit existing demand, 4. Make the value-cost trade-off, 5. Align the whole system of a firm’s activities with its strategic choice of
product successfully and target the right market, several things have to be taken into consideration. In their book ‘Marketing strategy & competitive positioning’ Graham Hooley et al. state: The critical issues concerning current customers are: (1)…
Name: Institution: Course: Professor: Date: Marketing The external factors which influence consumer behavior are referred to as culture. For any marketing strategy culture and subculture are vital considerations. Subculture involves factors such as morals, custom, belief, and other capabilities that a person acquires as a member of society. A subculture is any form of pattern that preserves a dominant society’s important features but provides norms, behaviors and, values of its own. Professional…
SECTION IV. MARKETING STRATEGY Promotion Promotional Strategy: The Promotional Strategy for BMW of North America would be very simple and to the point, unlike other dealerships. We will put our products in the hands of the four promotional elements, which are, advertising, public relations, personal selling and selling promotion. These promotional strategies would be used to help promote the already known BMW product but introduce…
Marketing Objectives By updating our current video stream library more frequently with newer videos and with video genres that appeal most to our suscribers, we will retain our current 50 million members and gain new subscribers. Despite strong international growth in the past year, the US still accounts for roughly 65% of all subscribers. But through the addition of more popular foreign videos we will gain more international subscribers and increase revenue. Marketing Strategy…
and fitness industry also proceeds with some appropriate strategies. Nike is considered to be one of the top 10 companies in fitness business. Let us take an example of the company Nike to illustrate the marketing, segmentation and positioning of this company. Segmentation Nike is mainly famous for making specially sports apparel. People play different kinds of sports. Keeping this in mind, Nike needs to segment their business strategies. Geographical segmentation: Companies do their research before…
Foundation of marketing strategy Kotex is attributed to analyzer business. It attempts to maintain a stable, limited line product, but carefully follows a selected set of promising new developments. It seldom as a first mover, but often a second or third entrant in product-markets related to its existing market base, which is often associated with a lower-cost or higher-quality product or service offering. Thus, the analyzer strategy is hybrid. On the one hand, analyzers are concerned with defending…
Marketing Strategy Enron - The Smartest Guy in the Room Enron was once the seventh largest company in the world, they were even featured in fortune magazine as America’s most innovative company for six years in a row from 1996 to 2001, but somehow they allowed their greed and arrogance to get the better of them. Though they have been successful for many years, it took very little time for them to go bankrupt. Enron’s demise is a result of implementing outrageously unethical and unrealistic strategies…
Quality, Service, Value and Cleanliness. As the marketing head also quotes “ We believe in the McDonald's promise of "With a sense of fun and youthful spirit, we will proudly serve an exceptional McDonald's eating experience that makes all people feel special and makes them smile, every customer, every time." Every employee strives towards 100% customer satisfaction.” McDonalds has created a distinct place in consumers mind through its promotional strategies which focus on striking an emotional chord…
