1. The business strategist finds that there is hope for the health care business. A brand new product or service. This means that the water is bloody red; A red ocean focusses on the existing market space The value/cost trade-off is the view that a company has the choice between creating more value for customers but at a higher cost, or reasonable value for customers at a lower cost. To learn more about how we handle your data, read the. They were also INSEAD professors. Definition: 'Blue Ocean Strategy is referred to a market for a product where there is no competition or very less competition.This strategy revolves around searching for a business in which very few firms operate and where there is no pricing pressure. This is a key principle of blue ocean strategy which sees low … The researchers called this the Red Ocean, analogous to a shark infested ocean where … The best example of Blue Ocean Strategy that I know of is that of Apple launching the iPhone. 4810 Spicewood Springs Road escalation and price indices are factored into a cost estimate. It is a new day and we are back with a new topic of discussion exclusively for you all! Not only could iTunes users access every song imaginable, but it was now possible to … The first example in "Blue Ocean Strategy" is Cirque de Soleil. Introduction Blue Ocean Strategy evolves to Red Ocean Blue Ocean Strategy Examples. There’s also limited shelf space and vending spots, well-established brand recognition of popular, current brands, and many other factors that affect new competition. Description: Blue Ocean Strategy can be applied across sectors or businesses.It is not limited to just one business. The strategy aims to capture new demand, and to make competition irrelevant by introducing a product with superior features. OFFICE Blue Ocean Strategy Examples. This field is for validation purposes and should be left unchanged. Before iTunes, the music industry was losing millions of dollars to illegal downloads and consumption of music. Blue Ocean Strategy - Summary and Examples 1. Want More Secrets And Tricks Like The Blue Ocean Strategy? 3 Examples of Businesses Using the Blue Ocean Strategy. Thanks!!! When the iPod was introduced in 2001, Steve Jobs said that “with [the] iPod, Apple has invented a … Blue Ocean Strategy was first published in 2005. Share This . In another example of blue ocean thinking, the Nintendo Wii team looked at the traditional game console that relied on leading-edge power and performance as the key to their value proposition. Click the link above or the picture below to read more. This can be painful because creating a blue ocean typically requires a large investment. In Blue Oceans, demand is created rather than fought over. Blue ocean strategy aims to create new revenue sectors, but implies a strong research of your market. In fact, they dominate so much that it creates a huge barrier to entry for new enterprises. Focus on current customers vs. focus on non-customers. Download our eBook, How B2B Leaders Can Gain (or Regain) Marketing Momentum. The Nintendo Wii launched in 2006 and at its heart is the concept of value innovation. Despite being unreliable, they cost $1,500, twice the average annual income. Apple observed the flood of illegal music file sharing that began in the late 1990s, enabled by file sharing programs such as Napster, Kazaa, and LimeWire. There can be a very high-profit margin in new markets. This created a blue ocean (as families bought the devices, not hardcore gamers) and lead to big margins for Nintendo as the Wii machines we cheaper to make than more advanced machines. Here are a few organizations that successfully captured a blue-ocean market: Cirque du Soleil: This Canadian entertainment company began in the 1980s as a bunch of “crazy people” with a vision of what the modern circus could be. This often requires overcoming an intense level of competition and can often involve the commoditization of the industry where companies are competing mainly on price. Oceans by expanding existing industry boundaries with the cutthroat competition in the world competing for.... Right marketing opportunity and making the competition look at red ocean strategy examples same time, website. Barriers to entry for new enterprises as the red ocean and a blue ocean strategy comes from games... 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