Essays on Blue Ocean Strategy and the Ecological Business Strategy: Capturing the Market Case Study

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The paper "Blue Ocean Strategy and the Ecological Business Strategy: Capturing the Market" is a perfect example of a business case study.   Many definitions of strategy highlight the idea that it entails the general path wherein the business organisation is operating, tackling broad issues such as where the business is headed to, as well as more precise questions like what kind of business should the organisation pursue (John & Gillies 1996). Johnson and Scholes (1993, as cited in John & Gillies 1996, p. 176) provide a definition of strategy (John & Gillies 1996, p.

176): “ Strategy is the direction and scope of an organisation over the long term: ideally which matches its resources to its changing environment… ” Two of the most relevant business strategies today are the blue ocean strategy and the ecological business strategy. This paper introduces both these strategies and afterwards, presents a case study for each of these strategies. Blue Ocean StrategyW. Chan Kim and Renee Mauborgne, in their book Blue Ocean Strategy— How to Create Uncontested Market Space and Make the Competition Irrelevant (2015), particularly offer the advice to pay attention to opportunities that pursue open waters or ‘ prospects’ in the blue ocean instead of exerting too much effort trying to overpower the rivalry in the prevailing industry, or, as the authors call it, ‘ red ocean’ .

On the contrary, the blue ocean strategy could be demonstrated by eBay’ s online auction by moving into a ‘ competitor less market (Siegemund 2008). Old-style competitive models, doing business in the red ocean, focused on defeating the competition in the prevailing market. Michael Porter argued that organisations have to reach a strategic decision between adopting a lower cost structure or differentiation (Siegemund 2008).

On the other hand, the blue ocean strategy places emphasis on the open or ‘ uncontested’ market by developing or introducing a product/service that is inimitable in a certain market where competition is non-existent, hence rendering competition unimportant. Instead of vying in a prevailing demand setting, the blue ocean strategy tries to raise and expand new demand for its products/services (Koontz 2010).

References

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Bansal, P & Hoffman, A (2012) The Oxford Handbook of Business and the Natural Environment. Oxford, UK: Oxford University Press.

Boons, F (2009) Creating Ecological Value: An Evolutionary Approach to Business Strategies and the Natural Environment. UK: Edward Elgar Publishing.

Iansiti, M & Levien, R (2004) Strategy as Ecology. [Online] Harvard Business Review, pp. 1-11. Available from: http://www.cs.cmu.edu/~jhm/Readings/HBR-Strategy_as_Ecology.pdf. [Accessed 25 April 2015].

John, R & Gillies, G (1996) Global Business Strategy. Mason, OH: Cengage Learning EMEA.

Kim, WC & Mauborgne, R (2015) Blue Ocean Strategy, Expanded Edition: How to Create Uncontested Market Space and Make the Competition Irrelevant. New York: Harvard Business Review Press.

Koontz, H (2010) Essentials of Management. New Delhi: Tata McGraw-Hill Education.

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Siegemund, C (2008) Blue Ocean Strategy for Small and Mid-Sized Companies in Germany: Development of a Consulting Approach. Berlin, Germany: Diplomica Verlag.

Singh, A (2013) Earthwards 2.0: Johnson & Johnson Seeks to Evolve Sustainable Product Innovation. [Online] CSR Wire. Available from: http://www.csrwire.com/blog/posts/756-earthwards-2-0-johnson-johnson-seeks-to-evolve-sustainable-product-innovation. [Accessed: 25 April 2015].

Stead, WE (2014) Sustainable Strategic Management. UK: Routledge.

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