Samuel, Marine

PLEASE RESPONSE BY EITHER SUPPORTING OR REFUTTING WITH SUPPORTING CITATION:

MARINE

Don't use plagiarized sources. Get Your Custom Essay on
Samuel, Marine
Get an essay WRITTEN FOR YOU, Plagiarism free, and by an EXPERT!
Order Essay

Comprehensive summary
Cirque du Soleil was one of the leading Canadian entertainment production companies that organized many productions across the country. However, the company experienced rapid growth in an unlikely setting that was replaced with long-term decline. Cirque experienced downfall while its competitors continued to generate billions of dollars of business. TV, video games, and sporting events have threatened the business of Cirque. The video gamers have captured the broader audience by targeting children. The company faced many challenges in its circus entertainment that include animal rights. The business strategy of Cirque is different from other companies, such as it established the uncontested market space and does not make money by competing with rivals. Blue Oceans examines the marketing and business strategies of the renowned companies that impacted their operations. “Cirque is just one of more than 150 blue ocean creations that we have studied in over 30 industries” (Ki & Mauborgne, 2004). Companies have developed blue oceans that have attained their goal of creating less successful competitors.

Red oceans contain less successful companies. Blue oceans contain companies that are capable of generating huge revenues and have the capacity of re-creating existing industries or new ones. Blue oceans are associated with growth and these have better opportunities for survival in the industries. While companies that are shrinking and continue to experience a decline in profits represent red oceans. Automobile, computer industries, and movie theatres represent blue oceans because companies like Ford Model and Apple are capable of achieving constant growth. Most of the companies are entrapped in red oceans because they are not focusing on the creation of new industries. There are dramatic imbalances between investments and profits in the red oceans. Three industries that represent blue oceans include “autos – how people get to work; computers – what people use at work; and movie theaters – where people go after work for enjoyment” (Ki & Mauborgne, 2004). Capturing new demand, creating uncontested space, and making the competition irrelevant are the main features of blue ocean companies.

Critical issues
The first critical issue identified in the article is the creation of demand. The companies experience critical issues, such as the primary concern is attracting customers and creating demands. Many companies build the strategy of capturing the customers of competing companies. This might provide short-term benefits to the companies, but they are unable to retain customers. Most of the firms are convinced to attract the buyers of the old firms that have already been working in the industries. This might offer short-term benefits but promote fierce competition.

The second critical issue is deciding costs as many companies enter red oceans when they only focus on deriving profits and maximizing them. This strategy never allows firms to reach blue oceans because customers are looking for value. In new markets, they are willing to take the risks only when companies manage to give some exceptional advantage. High costs undermine the company’s ability to reach a broader customer base.

The third critical issue faced by the firms in the traditional units of strategic analysis. Most of the companies are relying on wring unit of analysis that leaves the companies with limited explanatory power. In such a situation, the companies are unable to take the right decisions that impact their performance and ability to capture customers. Company and industries are the wrong units of analysis that does not offer a clear evolution of the markets and the industries. This limit forms the ability to assess the long-term performance of the company. Instead of relying on the traditional units, the company requires to consider their unique situation. the typical attitude of firms to rely on industry and company units creates instability.

Lessons learned
The first lesson learned in the article is the effectiveness of blue ocean strategy and its application In the business world. This is one of the most realistic strategies that allow companies to look beyond the traditional approach of attracting the customers of previously existing firms. The Blue ocean’s strategy has provided focused on creating new opportunities because this allows firms to remain in the industry.

The second important lesson learned in the article is avoiding imitation. The companies that lack a clear goal are only inclined to enter the markets by imitating the products of other firms. This is the weakest strategy because customers learn the differences between the original and the imitated products. The company ruins its reputation. The focus of the firms must be on adding new value, such as by presenting new ideas of creativity and innovation. This is an effective way of offering differentiated products to customers. The adoption of a blue ocean strategy allows firms to create barriers to imitation. This is because the strategy allows companies to attract buyers in larger volumes that lead to economies. This strategy is a practical tool for putting competitors in a constant state of cost disadvantage. The blue ocean strategy of attracting new customers is also linked with creating network externalities. The overall model is useful and prevents competitors from imitation.

The third lesson learned from the article is about the need for avoiding red oceans. The companies can attain long-term success only when they manage to enter the distant waters. This means focusing on developing an uncontested space. By creating its own space, it can eliminate the possibilities of fierce competition that minimize the chances of generating revenues and remaining in a profitable condition. Blue oceans can help companies in achieving a competitive edge.

Best practices
The article has highlighted best practices that allow firms to attain the status of blue oceans. The first best practice is to create new demand. The blue ocean’s strategy suggests that the companies that are aiming to attain long-term benefits must focus on creating new customers. If the firms aim at attracting the customers of other companies, they will encounter strong rivalry that will minimize their prospects of generating revenues. Building new customers is always favorable according to the blue ocean strategy because it allows companies to retain them for the long-run. This offers adequate opportunities for generating revenues and earning profits. There are different methods for creating new demand, such as giving a leap in the value for the buyers and the company.

The second best practice that can offer long-term benefits to the companies includes adopting a system of activities that focus on differentiation and low cost. The company by offering differentiated products gives more value to the customers. They are convinced by the feature of differentiation and are convinced to spend on this new product. This strategy focuses on giving a value proposition to the customers and familiarizing them with the benefits. The blue ocean strategy suggests that companies creating new demand must use a low-cost model for persuading the customers. The purpose of keeping low cost is to offer superior value to the customers.

The third best practice is making the competition irrelevant. The companies that offer superior value and differentiated features to the customers are capable of reducing competition. When companies create new demand and capture new customers, the competitors will not attempt to re-captures their lost customers. Blue ocean suggests that new markets are distant waters because they are untouched by the previously existing firms.

Topics covered
This article is closely related to the topics covered in class because it talks about the growth patterns of large corporations, it gives us an image of the relationship between the company’s strategy and its structure. In the article we describe important elements necessary to achieve organizational success and all these elements have a close link with important factors that are essential in the strategic management process.

Alignment of Concepts from Class
The article is aligned with the topics covered in class. It is important to consider how significant it is for any company to get out of the point of just creating profit by doing what others do without adding new elements and content to their products or services, adopting a system of activities that focuses on differentiation and the low cost makes it possible to highlight that companies that offer superior value and differentiated characteristics to customers are able to reduce competition. The content highlights the need to create ambidextrous organizational designs that can be selected for companies to explore new opportunities and effectively integrate affected operations.

References

Ki, W. C., & Mauborgne, R. (2004). Blue Ocean Strategy. Harvard Business Review.

Kim, W. C. (2005). Blue Ocean Strategy: From Theory to Practice. California Management Review, 47 (3)

Homework Sharks
Order NOW For A 10% Discount!
Pages (550 words)
Approximate price: -

Our Advantages

Plagiarism Free Papers

All our papers are original and written from scratch. We will email you a plagiarism report alongside your completed paper once done.

Free Revisions

All papers are submitted ahead of time. We do this to allow you time to point out any area you would need revision on, and help you for free.

Title-page

A title page preceeds all your paper content. Here, you put all your personal information and this we give out for free.

Bibliography

Without a reference/bibliography page, any academic paper is incomplete and doesnt qualify for grading. We also offer this for free.

Originality & Security

At Homework Sharks, we take confidentiality seriously and all your personal information is stored safely and do not share it with third parties for any reasons whatsoever. Our work is original and we send plagiarism reports alongside every paper.

24/7 Customer Support

Our agents are online 24/7. Feel free to contact us through email or talk to our live agents.

Try it now!

Calculate the price of your order

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

We work around the clock to see best customer experience.

Pricing

Flexible Pricing

Our prces are pocket friendly and you can do partial payments. When that is not enough, we have a free enquiry service.

Communication

Admission help & Client-Writer Contact

When you need to elaborate something further to your writer, we provide that button.

Deadlines

Paper Submission

We take deadlines seriously and our papers are submitted ahead of time. We are happy to assist you in case of any adjustments needed.

Reviews

Customer Feedback

Your feedback, good or bad is of great concern to us and we take it very seriously. We are, therefore, constantly adjusting our policies to ensure best customer/writer experience.

× Contact Live Agents
Verified by MonsterInsights