Blue Ocean Strategy

Andrews, K., 2010. The Concept of Corporate Strategy, 3rd Edition. Financial Times Prentice Hall. [Accessed 13 April 2014]

HCAD 790: Practitioner Application 2 Jennifer Chaix J16006447 September 12, 2017 Turning Today’s Bloody Healthcare Market Blue When discussing healthcare, “blue” and “red” are adjectives typically associated with the color of a patient’s veins and blood. However, from the executive’s point of view, these two adjectives mean something completely different. In the healthcare field, there are two market strategies: red ocean strategy and blue ocean strategy. “Red Oceans” represent the pre-identified market place which is comprised of all the types of businesses which are actively participating in the industry day.

Blue Ocean Strategy Paper Establishments are not eternally remaining on the market in a productive way. It is normal to find industries that make wise decisions, but there is also the possibility that the decisions taken have not been the best. The mission as marketing managers is to discover the wise decision that would mark not only within the industry, but also in the market with the purpose of repeating that decision in a clever and a systematic way. Redbox creates their new brainchild in 2002 McDonald's Ventures, LLC. The original idea was that two important services were combined in the movie rental

1. Describe strategy and the 4 generic strategies in the context of the case company (Tim Horton)

1. What are the key elements of Silver Ships’ strategy? Which of the five generic strategies is the company pursuing?

The red ocean represents the existing market space. Companies in red oceans most often pursuecompetitive-based strategies, aiming to get a bigger share of the market from their competitors - thus the bloody competition - red ocean metaphor. This approach is called the structuralist view of strategy, meaning that companies adapt their behavior (strategy) to the existing industry 's conditions.

An example of Blue Ocean Strategy business would be “Le Cirque du Soleil.” At some point of our life we did went to see the circus. The circus’ performances were very popular for many centuries. This is an old concept - a group of artists and acrobats who travel the world with a tent, and with a diversity of wild animals to perform a spectacular show. The primary target was the children. Today, this concept is obsolete, although still exist in Europe.

According to Slack et al. The corporate strategy or business strategy is the guide lines for the whole corporation’s businesses in relation to its markets, customers, and the competitors (2007). In the same context, the same authors discussed the link between the corporate strategy and

Included with this full-text Harvard Business Review article: 70 Article Summary The Idea in Brief—the core idea The Idea in Practice—putting the idea to work 71 Blue Ocean Strategy 80 Further Reading A list of related materials, with annotations to guide further exploration of the article’s ideas and applications

Kim, W. Chan, and Renée Mauborgne. "Blue Ocean Strategy." Davidhenard.com. Harvard Business Review. Web. 22 Oct 2013. .

The authors of the book 'Blue Ocean Strategy' are two friends who dedicated the book to their friendship, loyalty and belief in one another. They are: W. Chan Kim and Renée Mauborgne. They met twenty years before publishing the book, in a classroom – one as a professor, the other as a student. And since that time they have been working together seeing themselves like two wet rats in a drain.

This strategy seem challenging since this strategy focus on capture new market and new demand, which it’s required extra efforts in term of innovation of products and promotion in order to make customers realize about their product. Even there are some discussions about the blue ocean strategies; however, based on my review on customers comment said that the practical guidance on how to create them is limited. Therefore, without usual analytic framework which can be used as guidelines to create blue oceans as well as effective principles to manage risk, creating blue oceans viewed as too risky for managers to pursue as strategy for their company.

Alfred Chandler(1963) defines strategy as ‘ the determination of the long-run goals and objectives of an enterprise and the adoption of courses of action of an enterprise and the adoption of courses of action and the allocation of resources necessary for carrying out these goals’. And Michael porter(1996) sees it as ‘Competitive strategy is about being different. It means deliberately choosing different set of activities to deliver a unique mix of value’.

This demonstration is going to be developed through three different outlooks. The first one deals with the historical birth of strategy and its main evolution among the centuries. Then we will expose the relations and the interactions of military strategy and business strategy. And finally, we will raise a certain numbers of limits to underline the fact that strategy is not a science.

There are some tool produce to help implement blue ocean strategy. The Eliminate-Reduce-Raise-Create (ERRC) Grid is the matrix that help execute blue ocean strategy with the four action framework: eliminating, reducing, aising and creating. ERRC Grid help company to remain on their competitive factors. Eliminating and reduce the factor that the transitional industry take it for granted can help the new strategy to remain unique from the transitional market. Nevertheless, raising and creating some unique competitive factor the transitional market never or seldom offered that is above the industry standard. With all these “Four Actions Framework” the company can escape the transitional red ocean market by activate a new blue ocean market and create a new value curve. (Kim & Mauborgne, 2005)