A market can be described as either a red ocean or a blue ocean depending on whether the industry of the market is in existence or not. To be specific, red oceans denote the already known market space where all the industries in it are existent. In the red oceans, boundary lines between industries are well-defined. Here, companies are endeavor to have a greater market share against their competitors. However, expected earnings and growth become low due to fierce competition as more and more market participants enter into the market. On the contrary, blue oceans are defined as unexplored market space where all the industries in it are not existent. In the blue oceans, not only the market is non-competitive, but also new demands are created with the potential for high growth. In order to seize an opportunity for profit and growth, blue oceans should be created.
The very first step for a company to open a blue ocean market is to define the basic unit of analysis. In numerous books and research literature relating to business, the company is regarded as the basic unit of analysis for the red ocean-based business strategy. However, no company everlastingly achieves high performance, and the same company repeat rise and fall. Consequently, the company is not an appropriate unit of analysis to investigate the origin of blue oceans and high performing companies. Instead, it is the strategic move that is a suitable unit of analysis for the blue ocean-based business strategy. The strategic move represents a managerial decision that creates a new market space by rapidly increasing demand and dominates the market space with an innovative product or service.
The approach of a company toward business strategy is the consistent criteria for de...
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...ean strategy is to strategize execution of the strategy. In implementing the blue ocean strategy, there always exists a certain amount of risk and uncertainty. Therefore, all the members must be fully aware of and trust in the ongoing strategy. For this purpose, the three E principles of fair process – engagement, explanation, and clarity of expectation – should be applied. With this specific principle, all personnel at all levels of a company act on the strategy underway.
With the six steps for successful blue ocean strategy abided by, a company can create the new uncongested market space where has never existed before. However, more and more companies enter into the blue ocean as frontiers and early followers consistently succeed in the industries. Value curve of the frontier company will be eventually imitated and a company may fall into a trap of competing with
A successful business relies strongly on strategic planning and development. Businesses strategies define a company’s future through vision and mission statements, marketing, operations, and financial performance. The purpose of this paper is to analyze and evaluate the business strategy of a public traded company, Salix Pharmaceuticals, Inc. Throughout this paper, the writer will provide a company overview, a SWOT analysis, and explore the strategic objectives and contingency plans of Salix Pharmaceuticals, Inc.
The goal of this paper is to provide key insights and concepts from three strategy books and then begin the strategy planning process for five different products.
Blue ocean strategies help discover unchallenged market spaces where competition does not currently occur. Planners use the space to provide new offerings to the market. Red ocean strategies help discover market spaces that are already competitive. Utilizing red and blue ocean strategies assist strategic planners in dominating the markets in which they have an interest. They are also more likely to earn higher
BUSA 4126 has given me the chance to study the different business policies and strategies a company has to consider when operating. Numerous topics in this course have given me a better insight on companies that interest me such as Nike, UPS, Nestle, and the NFL to name a few. A few of the topics that interested me most were the subjects of creating and linking the companies vision and mission with its core values, key success factors, competitive advantage, key resources and capabilities, and the four test of a resources competitive power.
Arthur, A., Thompson, Margaret, A., Peteraf, John, E. Gamble, A., J., Strickland III. (2014). Crafting & Executing Strategy: The Quest for Competitive Advantage 19e: Concepts & Cases. C6-C25.
Strategic issues have been defined as ‘environmental trends and possible events that may have a major and discontinuous impact of the firm’ and early research focused on identifying and assessing these important phenomena (Ansoff, 1975, p. 24-25, 1980). Later scholars introduced the concept of strategic issue diagnosis: the evaluation and infusion with meaning of environmental data with the intent of generating organizational momentum to respond (Dutton & Duncan 1987b; Dutton et al., 1983; Dutton & Jackson, 1987), a process that involves the following steps (Julian & Ofori-Dankwa, 2008). Decision makers scan the environment in attempts to detect signals of potential importance to the firm, collating and reifying a variety of related stimuli into a “strategic issue” (Dutton et al., 1983). This issue joins similar issues in the “strategic issue array,” the list of different strategic issues being potentially considered at any given time (Dutton & Duncan, 1987a; Dutton, 1997). Based upon their interests, beliefs and inclinations, different individual executives and managers, as well as groups, attempt to sell, promote and champion a particular strategic issue’s significance by means of different diagnoses (Dutton & Ashford, 1993; McMullen et al., 2009). By means of analysis and negotiation, the upper echelon of the firm comes to a more or less commonly agreed upon diagnosis of the issue in question as to its nature and possible effects (Dutton et al., 1983; Dutton, 1993, 1997). Once more or less established, the strategic issue’s diagnosis influences the formulation and implementation of a response, which may unfold over time and which itself may lead to further altered diagnoses (Dutton, 1997; Chatto...
Miles and Snow analyze the strategies of a business unit by classifying them as one of four specific strategic types: prospectors, defenders, analyzers, and reactors (Parnell, 2014). Under Miles and Snow’s strategy, prospectors strategize how to bring new products, designs and innovation to their specific industry. They are the ones who react quickly to changes in the market and are constantly looking for at ways to develop new products and services. Parnell (2014) relays that prospectors often seek first-mover advantage; meaning that they are quick to take their product to market in an attempt to gain an advantage over their competition by being first to present a new or original product. They practice product differentiation. Defenders, on
...lopment industry as well as the strengths and weaknesses within the company. The Business Strategy should reflect the main issues that determine the long-term
Danai Chanchaochai, 2012. Blue ocean strategy: a powerful paradigm for sustainable success in a world where everyone can be a winner, DMG Book.
A key part of an organizational strategy is to identify market opportunities by finding a niche or a gap in the marketplace that they can pursue to take their company ahead of all their competitors. An organiz...
Firstly, to understand what Pisces’ corporate-level strategy is, understanding the term of is vital. Corporate-level strategy is strategies undertaken by firms to gain competitive advantage through diversification of single business operation to multiple operations competing in different product market (Ireland 154). From the concept, we will realise that Pisces had also adopted the use of International Strategy. International Strategy is strategies taken by a company by selling goods or services outside its home market. In the case of Pisces, they expanded by diversifying their operation out of its home (Singapore) market to Saudi Arabia, China, Thailand and more. We will discuss about the multi-domestic strategy that I feel that was the strategy adopted by Pisces. Multi-domestic strategies are strategies in which operation decision are made by the strategic business unit of each country to allow customization of decision towards the local market. For these areas, I will be making use of the Value-Creating Diversification Strategies (Ireland 159) and the International Corporate Level Strategies diagram to help me to assess the types of strategies deployed by Pisces.
Business strategy is the means by which firm’s plans to achieve its goals and objectives. It can also be termed as organization long-term planning. The strategy covers periods between 3-5 years and sometimes longer. Businesses use two major types of strategy, general or generic and competitive strategies. The overall strategy involves strategies of growth, globalization and retrenchment. The competitive advantage includes low pricing, product and customer differentiation. We will look at the business strategy used by Marks and Spenser (Cole, 1997). The company is a British multinational located at Westminster London and specializes in clothes and luxurious food products.
Firms exist with the purpose of create and deliver economic value (Bensaco et al 2010, p. 365); therefore, business that create better economic value than its competitors will attain an advantage position in market place. Companies might try to improve its sales (profit) through domestic expansion, product diversification or by internationalisation; this report will focus on the reasons of espressamente Illy to expand internationally; additionally, its sources of competitive advantage and, the analysis of three markets in which company want to participate.
In a world of free trade, growing competition and accessibility to foreign markets, the need for methodical market analysis and assumptions is steadily rising in today’s business environment. It is just a normal way of thinking to primarily intent to eliminate the financial before entering a new and foreign market. This suggests that enterprises have to develop an overall strategy for their business in order to gain competitive advantage and consequently market share. With the words of Michael E. Porter, professor at Harvard University and leading authority on competitive strategy, this desirable market success is indirectly linked to the individual structure of a market. The unique structure of a single market influences the strategic behaviour and the development of a competitive strategy within a firm. The competitive strategy finally decides whether a company performs successfully on the market or not. Referring to this interpretation of business success, M. E. Porter established his five forces framework that enables directives to gather useful information about the business environment and the competitive forces in industries.
A strategy, according to Robbins and Barnwell (2002, p. 139) is “the adoption of courses of action and the allocation of resources necessary to achieve the organisation’s goals”.