Blue Ocean Strategy

1148 Words5 Pages
Blue ocean strategy
The maturity of an industry has brought a company swimming in a red ocean, which means price war strategy, according to a bestseller book titled Blue Ocean Strategy that is written by W. Chan Kim and Renee Mauborgne. This situation influences the way a company evaluates its strategies and effectiveness regularly. Each company has a particular business culture, which is suitable only for the company in a specific industry. This condition may not be suitable when the industry changes or the company is acquired by another company at bigger size.
There are some conditions that influence how companies take care of competitive markets. They include strong corporate culture, employees learning and development attitude,
…show more content…
Battle between Gillette and Schick
The battle of one-upmanship between Gillette and Schick also happens in any other industry where few companies dominate a market of particular products. The reason to perform the one-upmanship model is the company considers that their products have a particular lifetime, which raises the need to improve or even change the design, features, and product benefits. This so-called product life cycle also help the company to manage product in respond to some factors such as customers’ demands, technological changes, amendments in regulation, and many others (Kotler, 2003; Internet Center for Management and Business Administration, 2004).
In Gillette case, it is obvious that Gillette compete in the increasing number of blades with the competitor, Schick-Wilkinson Sword. This battle is obvious as each entity strives for introducing new blades products such as Gillette’s 3-bladed product, Mach3, which is responded by Schick 4-bladed Quattro and later countered by Gillette 5-bladed Fusion (Cengage, 2011).
So, in Gillette case the battle of one-upmanship is still valid and effective as customers still value the product innovation of razor and blades as the way of improved product benefits. Still, there is still a room for improvement for Gillette, considering that P&G has the most advanced and sensitive market research

More about Blue Ocean Strategy

Get Access