Blue ocean strategy Essay

The concept of meritless and loss marines is used to describe the grocery cosmea occupied by communication channel. The red ocean consists of all industries which atomic number 18 soon in operation. In this business universe, the boundaries of industries are defined as sanitary as widely accepted. This business world is characterized by high contention as companies try to outdo their rivals. Increase in contender crowds the commercialize thus reducing prospects of profit and as well growth resulting to cutthroat competition. This competition then turns this business ocean bloody thus the name red oceans (Kim & Mauborgne, 2005).The glooming ocean on the other hand refers to industries which are not yet in existence. beneath this ocean, pray for products is created instead of being fought for as in the red oceans. This universe as well has opportunities for growth and higher profitability. Under the blue oceans, competition is irrelevant since the rules are not yet se t. This speak to defines the authorization that is unexplored by the already existing trades. Value insertion is the base of blue ocean dodging and a company creates a blue ocean when it is satisfactory to achieve survey concept with the substance to create value for the buyer and the seller simultaneously.The blue ocean strategy is today being used by about of the booming businesses round the world. business sectores buzz off realized the value of marrying value innovation to help in growth and profit sustainability. China bustling company is one of the businesses which befool reaped the benefits of applying blue ocean strategy in its operations (Kim & Mauborgne, 2005). Adoption of blue ocean strategy by China rambling company go using the blue ocean strategy, a company tries to create a space which is uncontested and to create and then capture new demand in the foodstuff. Another aim of the company is to ensure that competition is make irrelevant.Blue ocean st rategy similarly tries to break the cost flip-flop off or the value. The other objective of a blue ocean strategy is to align the entire system of the activities of a company towards note and attain handst of lower costs (Kim & Mauborgne, 2005). China industrious is among the most successful companies in the wandering phone market which have largely pick out the blue ocean strategy in its operations. Competition in this market is fierce as it has more than than 100 phone manufactures and over metre products being launched in the market. This competition led chinaware nimble to adopt a different approach to ensure it survives in this industry.China mobile has created over five domains of blue oceans which include the invention of TV phones, carry mobile phones, navigation mobile phones, secure mobile phones and energy deliver phones. By the time china mobile was introducing some of these services to their phones, most of the companies in this field had not explored these areas making china mobile gross r crimsonue to increase and costs to reduce. Most of these areas like the secure mobile locks are still widely unexplored by most manufacturers of mobile phones (confederacy of Hong Kong Industries, 1996).The mobile products of China mobile are characterized by innovative products which have created and brocaded their demand all over the world. Their innovative processes involves integrating and converging computers, communications, and consumer electronics functions in coming up with the china mobile phones with above specifications. While maturation the phones, the company looks at possible demands inside the environment which whitethorn fig up in the future. One of the most popular phones from this company is the navigation mobile phone. Another make that have attracted more customers is the solar powered mobile phone (Hamel, 1998).While using the blue strategy, china mobile tries to get by up with mobile phones which create demand in the market slice at the same time reducing possibilities of competition. It makes phones to meet and satisfy a certain need in particular but individual market segments. Hi-tech wealth phones are secure mobile phones from china mobile which are specifically produced to fit the needs of business people as well as entertainment industry. By making this phone, the company was able to create a need in this category of people and besides to increase the demand for the product.Before invention of this mobile phone, business men and the entertainment industry had no need for secured phones. However, the nature of their work could have necessitated such(prenominal) a phone. By making such a phone, china mobile did not lone(prenominal) create a need in these people but it also created awareness of such needs and successfully met them. Making products which fit or satisfy a need that a company creates is effective in creating blue oceans for a company and china mobile has been able to do this (Wang & Ahmed, 2002). Chinas commonplace market is characterized by red hot ocean.This market has high competition and more another(prenominal) players who trade in the melodic phrase market. People involved in the stock market operations are keen on the different trends this market takes. China mobile identified these need and came up with the china Unicom and also china mobile which aids in operating the mobile stock business. Invention on the china Unicom led to high demand of it in the country. China mobile have to a large extent utilise blue ocean strategy which have enabled it to continue growing and expanding even in the global markets.The products of this company are widely used collect to their uniqueness and their markets are not faced with competition unlike other mobile phone manufacturers (Asongu, 2007). However, despite the proven benefits of the blue ocean strategy, it is extremely criticized by different authors as well as businessmen. One of the criticisms is estab lish on the unavailability of uncontested spaces in the market. This approach is dismissed as being descriptive or taking a theoretical emplacement instead of being prescriptive.While this strategy argues that there are spaces in the market which are unexplored, identifying such places is difficult and maintaining them to avoid competition is also impossible. Since china mobile invented the TV mobiles, most of other manufacturers also followed beseem thus increasing competition. The temporary blue ocean created does not brave long enough to enable a company attain desired growth. Blue oceans al slipway end up being red oceans inwardly short periods and are hard to maintain. The cost of developing a blue ocean may thus be high than that of operating in a red ocean (Huang, n. d).The blue ocean strategy is also criticized on the ground that there has not been any control gathering which have been cited or used to determine its viability. in that location could be many companies which failed while attempting to employ this strategy thus making the viability of this strategy questionable. This surmisal thus does not meet the criteria of falsiability in the real practice because no deductive process has been followed to ensure its workability (Truch, 2006). The blue ocean strategy is all an enhancement of other theories of competition and now a new idea. It expounds on ostiarys competitive theories of SWOT analysis.However, this theory fails to recognize the potential threats that may face a firm while exploring new markets. Porters theory is superior in that it takes into consideration of possible opportunities within the industry and also the possible threats. Also, Porters theory is more practical unlike the blue ocean theory (Hollensen, 2007). Conclusion Businesses use up strategic planning for them to be able to grow and be productive. There are different business strategic approaches which a business may adopt to ensure it gains a competitive edge i n the market place.Blue or red ocean strategies are some of such strategies available to a business. With increase in competition and globalization on the rise, it is vital for any business to be innovative and creative. One of the ways to ensure that a business maintains its market share and profitability is by developing products or offering services which are of higher value as compared to other available goods or services. This can be in effect done by identifying the needs of the customers and producing products that meets and creates more demand for a product.This is only possible if a company is able to identify untapped business areas. A business should however adopt a strategy that suits its marketing needs and its growth prospects.ReferenceAsongu, J. J. (2007) Generating Sustainable Funds through brand RED Campaign Introduces New Business Model for CSR. Journal of Business and Public Policy Blundell, R. , Griffith, R. & Van Reenen, J. (1999) Market share, market value an d innovation in a panel of British manufacturing firms. Review of Economic Studies Federation of Hong Kong Industries (1996) Hong Kong Industrialist Journal of the Federation of Hong Kong Industries