Blue Ocean Strategy

789 Words Mar 26th, 2016 4 Pages
STRATEGIC MANAGEMENT

ASSIGNMENT # 5

BLUE OCEAN STRATEGY

October 24, 2014

Case Study

Question 1
Critically analyze the case.
Solution 1
In this case study, the author has discussed different methods and strategies which global firms are adapting to achieve success and to grow exponentially in their relevant industries. This article has focused on two strategies, Red Ocean and Blue Ocean particularly. These strategies are used to define the environment a firm is operating in and to figure out whether they are creating value for the firm or not. Blue Ocean Strategy is basically to create new uncontested markets solely through innovation and creativity where demand is created and derived from the market. Whereas Red Ocean
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This helped him revive and attain greater revenues over the decade.

Question 2
According to the case why is there an imbalance in favor towards red ocean strategy? What are the main differences between Red Ocean and blue ocean strategy? According to the case what role does a corporate strategy play to influence a company’s position in an industry, along with pursuing Red Ocean or blue ocean strategy?
Solution 2
The word “Strategy” has found its birth from the military and has its roots aligned with them. The military’s stance on strategy has always been to defeat the enemy in order to succeed. Which means that military point of view is that to gain a greater share of land by pushing the enemy towards a competitive disadvantage and diminishing its share of land. Red Ocean focuses on competing with the existing rival firms and to increase their market shares by reducing the competing rival firm’s market share.
Corporate strategy basically defines the company’s line of action and the direction it is going to follow. The traditional concept of a corporate strategy with a military school of thought is to capture the rivalry firm’s market share and gain competitive advantage over them which is known as Red Ocean Strategy. Whereas, Blue Ocean strategy focuses on exploring new untapped markets and creating demand for a firm’s products and services. Question 3
Give one example of a company pursuing blue ocean strategy and one example of a

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