Wednesday, November 25, 2015

Blue Oceans are all around

The importance of creating new opportunities in a competitive market was well illustrated with the blue ocean strategies. The emergence of  companies utilizing the blue ocean strategies to their advantage and creating new market for their growth was evident from the examples given. Recently emerging startups create blue oceans and grow in a tremendous manner.Companies like Airbnb, Uber, Whatsapp are examples of such blue ocean companies.

When looking at the services provided by such companies, they are not providing any new kind of service or some service that was newly invented. Airbnb is in the hotel business(proxy hotels to be definitive), which has been a centuries old industry. Uber is in the cab business(proxy yellow cabs ), is also a centuries old industry, starting from carts to carriages and cars in the present. Whatsapp is in the communication business (proxy SMS), where the industry has been since the time of pigeons, to pagers and now phones. Right now the term proxy suits to these companies, but in the future these companies can become the pioneers of revolutionizing those industries. A good example of this was ford introducing the T model, which in my opinion changed the dynamics of  the world and is the reason why everyone has a car or capable of owning a car.

Thus it is a clear understanding that blue oceans emerge from existing red oceans. Entertainment is the industry where blue ocean strategies always win. Consider the companies that used to make comics are now major players in the film making. Recent trend of the marvel universe movies having the top grossing releases, is a evidence to creation new markets in a well established industry. Instead of focusing on the medium of paper they evolved from tv screens to big screens and instead of using hand drawn sketches, celebrity voices ,now real life actors are used to portray those comic characters. Thus from a limited customers comprising of kids the evolution of the comic has now covered additionally teens, adults and elders. A blue Ocean was created from the existent Red Ocean, especially in the Entertainment industry.

The point stressed in the paper was Blue Ocean strategies always exist and we barely notice such trends.As such companies grow, in the long term and new players enter into such blue oceans, then starts the competition and they turn into red oceans. Then again blue oceans are going to emerge from these red oceans. This evolution cycle goes on. Thus a conventional strategic model is not going to always work in any industry. The dynamics of industry dictate the terms of the play and hence influence the strategy. Strategy should also evolve along with such changes.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.