Blue Ocean Strategy Essay

963 Words Aug 25th, 2014 4 Pages
Blue Ocean Strategy
(your name)
MKT/421
(due date)
(instructor name)

Blue Ocean Strategy
A blue ocean is uncontested market space that does not exist now, but will in the future. Blue ocean strategy refers to innovation and development of products and services that have not been offered previously. It is a method of systematically pursuing differentiation and low cost and effectively making the competition irrelevant. “Blue ocean strategy describes how organizations should try and find a way to work in a marketplace that isn’t bloodied by the competition and is free of competitors” (Brooks, 2013, Dec 17). Four actions and questions, known as the ERRC Grid, are part of creating a blue ocean strategy (ERRC Grid, 2012, Apr 19): 1.
…show more content…
The effectiveness and strength of a strategy will be determined by a strong tagline (Characteristics, n/d. para. 15).
Blue Ocean Move
A blue ocean move is a strategic set of actions and decisions involving a market-creating business offering. The Tescooter that Tesla Motors will soon be introducing is considered a blue ocean move. Tesla Motors demonstrates innovation by building an all-electric scooter that will appeal to students and business-people alike. As obvious as this creation seems, the Tescooter is the only all-electric scooter; thus, the blue ocean.
This is considered an entrant into the blue ocean because Tesla is:
1) creating an uncontested market. No other builders of scooters are offering an all-electric option.
2) making the competition irrelevant. With no one else building this option, there is no competition.
3) creating and capturing a new demand. For those who are interested in scooting right past every petroleum-based fueling station, this is the perfect option. For those who are interested in scooting right through traffic, this is the perfect option. For those who prefer scooting right into a parking spot close to the office, this is the perfect option. For those interested in scooting past a carbon-footprint, this is the perfect option.
4) breaking the value/cost tradeoff. The value and quality of the Tescooter is similar to that of any other Tesla

Related Documents