Blue Ocean Strategy Paper
November 24, 2014
Blue Ocean Strategy Paper
When you think about a Blue Ocean Strategy, there are three words that come to mind. The first one is innovative. Blue ocean strategy generally refers to the creation by a company of a new, uncontested market space that makes competitors irrelevant and that creates new consumer value while decreasing costs. It was introduced by W. Chan Kim and Renee Mauborgne in their best-selling book of the same name. The second word would be intelligence.” The Blue ocean strategy made it so companies would be able to come up with a whole new way to do business in either an industry or invent ...view middle of the document...
” In other words you have to make people who never thought about using the brand or product or was hesitant about doing so be willing to give it a chance and that’s what more and more companies are doing right now.” ("Global, Entrepreneurship & Small Business", 2014).
One example in an industry that has a lot of competitors but is definitely a blue ocean company would be Southwest Airlines. When you think of a company such as Southwest Airlines, some people may ask, why this company is a Blue Ocean company. The reason behind it is simple. Southwest Airlines, a company based out of the United States made history when they were the first low-cost carrier. The one thing that Southwest did was analyzed alternative industries and took that and created new benefits to their non-customers.” The thing is to target customers who preferred to drive over flying because of the cost difference.” ("Blue Ocean Strategy Method", 2014).
Now the way they did that was to position itself as a competitor to the rental car industry, not other airlines, and adapted their strategy to the new requirements. The first thing they did was reduce the prices due to the elimination of additional services. So the services that other airlines were providing such as first class, and other areas were eliminated so they focused more on pricing, giving people who want to rent cars an alternative. The next thing they did was improve check in times. “Doing this would give people the opportunity to check their luggage in and not really worry about standing in line as long and made it way more convenient.” ("Blue Ocean Strategy Method", 2014).
The third thing they did was increased flight frequency. This is important because when you do this you give people an option to do either or. The high traveling speeds and low prices made it a perfect option to driving a car across country by making it affordable to fly. The reason why Southwest was able to do this is because they were innovative and took different strategies from other ventures such as the car rental industry and made it to their own.
This to me is the true definition of a blue ocean move because when you look at it, you see now because of this there are a lot more airline companies trying to duplicate the same thing that Southwest is doing but the success rate is not as high as Southwest because the company...